Greece — Tax for retirees
Updated
What this page covers
This page explains how Greece taxes retirees in plain words.
Tax resident means Greece treats you as living there for tax purposes. Greek tax residents pay tax on income from everywhere. Foreign pensions ordinarily enter progressive employment/pension taxation under the Income Tax Code (Law 4172/2013), subject to DTTs.
A double tax treaty (DTT) is an agreement between countries so you are not taxed twice on the same income.
Greece offers a genuine pensioner preference: Art. 5B ITC — alternative 7% annual tax on foreign income for qualifying foreign pensioners, for up to 15 tax years under the AADE guide. Greek-source income stays under ordinary rules. Art. 5B does not override ratified DTTs.
Immigration status and tax residence are separate. Tax-residence transfer applications go via myAADE “My Requests”.
This is not tax advice. Confirm your situation with a qualified advisor.
Who counts as a tax resident (simple)
Per AADE and Law 4172/2013 Art. 4 (Circular E.2064/2023):
Art. 4(1): You are a Greek tax resident if you have in Greece a permanent or principal residence, habitual abode, or centre of vital interests (personal and economic relations)—or certain public officials serving abroad.
Art. 4(2) days test: Presence in Greece > 183 days cumulatively in any 12-month period → Greek tax resident from the first day of presence.
Exception: presence exclusively for tourist, medical, therapeutic or similar private reasons, and stay ≤ 365 days (including short absences abroad). Partial / arrival / departure days count per E.2064/2023 practice.
- Residents → worldwide income.
- Non-residents → Greek-source only.
Presumptive / objective living-expense taxation (Art. 30 ITC) can raise the taxable base for retirees with Greek housing/cars and low declared income—flag for planning.
If you are from the EU
EU/EEA/Swiss movers use the same residence criteria. Free movement helps you live in Greece; it does not replace Art. 4.
Art. 5B gates require a qualifying foreign pension, prior non-residence (not Greek tax resident in five of the six years before transfer), and transfer from a State with which Greece has an administrative cooperation agreement—nationality alone is not enough.
For EU-source pensions, open the bilateral text from the AADE DTA summary table (Nov 2025). Notable list notes: Sweden DTA terminated for income from 01/01/2022; new France treaty applicable from 01/01/2024.
If you are from outside the EU (pensions)
Same Art. 4 tests; non-EU nationals need an immigration basis to stay lawfully.
Ordinary progressive rates for employment & pensions (MinFin):
- Through 2025: 9% / 22% / 28% / 36% / 44% on successive €10k bands up to €40k+.
- From 2026: base rates 9% / 18% / 26% / 34% / 39% (€40,001–60,000) / 44% (>€60,000), with dependent-child reductions and personal tax reductions—see MinFin full matrix; do not oversimplify.
Without 5B, foreign pensions sit in this progressive base subject to DTT relief.
If you are from the USA
Treaty: US–Greece Convention signed 20 February 1950 (protocols 1953); in force 30 Dec 1953. This is an older treaty than modern US Art. 18 models.
| Provision (high level) | Typical outcome |
|---|---|
| Art. XI(1) — government wages/salaries/pensions | Exempt in the other State |
| Art. XI(2) — private pensions and life annuities | Exempt from tax in the source State |
| Art. XIV(1) saving clause | Each State may tax its citizens/residents largely as though the Convention had not come into effect, then use foreign tax credit |
US-source private pensions paid to a Greek resident are generally not taxed by the US as source State, but US citizens remain US-taxable under the saving clause—relief via foreign tax credit for Greek tax (including possibly the 7% under 5B). US Social Security characterisation under the 1950 treaty is expressly unresolved—do not assume Italy-style exclusive residence taxation of SSA. Federal treaty does not control state tax.
Special deals that may apply
Art. 5B ITC — 7% alternative for foreign pensioners
Primary: AADE Guide Tax Incentives… Arts 5A, 5B, 5C (Athens, 12 November 2025); AADE FAQs 26 Nov 2025; Law 4172/2013 Art. 5B; Joint Decision 1217/2020.
Tax effect: Pay tax independently each year at 7% on all income obtained abroad; Greek-source income under general provisions. Duration: AADE guide states application begins from the next tax year for which the application is submitted and ends after fifteen (15) tax years (flag: some secondary sources say “from the year of application”—prefer AADE wording). Non-payment → exit from regime onward. DTTs continue to apply. Mutually exclusive with Art. 5A (HNWI); may combine with 5C only if employment conditions are met (usually not for pure retirees).
Procedure (prefer Law 5313/2026): Submit via My Requests on myAADE to KEFODE Attica / Thessaloniki. Under Law 5313/2026 (ΦΕΚ Α’ 102 / 25-06-2026, Art. 94 as reported), the fixed statutory 31 March application deadline and 60-day decision period are removed — timing is set by AADE Governor decision; annual 7% payment is due by the last working day of December (older commentary had July).
Flag — Law 5313/2026 vs AADE guides
Conflict: AADE English Guide dated 12 Nov 2025 and FAQs 26 Nov 2025 still describe the 31 March deadline and do not yet reflect Law 5313. Prefer those AADE docs for substance (7%, 15 years, eligibility) only.
Editorial rule: Do not publish 31 March as settled current process law. Recheck live AADE / myAADE / ΦΕΚ / Governor decision before soft-launch how-tos.
Related (context only)
| Regime | Pure pensioner relevance |
|---|---|
| 5A HNWI (€100k on foreign income / 15 years + €500k investment) | Alternative for wealthy; cannot combine with 5B |
| 5C 50% exemption on Greek work income / 7 years | Needs Greek work activity |
Things to double-check
- Art. 5B start year (year of application vs next year) — AADE Nov 2025 guide vs secondary blogs.
- Live AADE / myAADE calendar after Law 5313/2026 (Governor decision may still be pending) — high priority verify; do not republish Nov 2025 31 March as current process.
- Whether lump-sum commutations, IRA/401(k)/SIPP withdrawals, or annuities qualify as Art. 12 “pension” for the 5B gate.
- US Social Security under the 1950 treaty + saving clause + 5B.
- Presumptive income interaction for 5B taxpayers with Greek real estate and cars.
- Sweden (no DTA) and other gaps — domestic rules only.
- KEFODE processing times and Apostille variance.
References
- AADE — Tax residence natural persons; Tax incentives hub; Guide Arts 5A/5B/5C EN PDF (12/11/2025); FAQs Greeks abroad EN PDF (26/11/2025)
- Law 4172/2013 Arts. 4, 5A–5C, 12, 15; Circular E.2064/2023
- MinFin — Income taxation guide (incl. 2026 rate scales)
- AADE DTA summary table (Nov 2025)
- US–Greece DTT (IRS greece.pdf)
- Law 5313/2026 (ΦΕΚ Α’ 102/25-06-2026) — verify against republished AADE guidance
Research date: 2026-09-21 (Europe/Brussels). Not legal advice.