A new window of opportunity has opened until October for foreign retirees who wish to transfer their tax residence to Greece and benefit from a flat 7% tax rate on income earned abroad. According to a new decision by the Independent Authority for Public Revenue (AADE), the application deadline has been extended from March 31 to October 31, giving interested parties the time they need to complete the process and secure entry into this special tax regime, which can remain in effect for up to 15 years.
Interest in the scheme is already substantial. To date, more than 1,700 applications have been submitted, with approximately 1,000 already approved. The majority of applicants come from Northern and Western European countries, including the United Kingdom, Germany, France, the Netherlands, and the Scandinavian nations. American retirees are now entering the picture with increasing momentum, as more and more are considering Greece as their destination for tax residency.
The key changes
- Application deadline extended to October 31. Those who have transferred their tax residence to Greece by July 2 may choose to join the scheme either for the current tax year or the following one. For transfers made after July 2, enrollment applies exclusively to the following year.
- Supporting documents accepted until November 30. Additional time has been granted for documentation — applications can be submitted even if the file is incomplete, with required documents accepted until November 30. This means that a missing document will no longer result in the loss of the application deadline.
- Application review and decision by end of December. A clear timeline has been established for processing applications. The Central Authority for Large and Non-Resident Taxpayers (KEFODE) has up to 60 days to review each file, and the relevant decision must be issued no later than the last working day of December.
Who is eligible
To qualify for the scheme, the following conditions must be met:
- The applicant must not have been a tax resident of Greece for five of the six preceding years, and
- they must transfer their tax residence from a country with which Greece has an administrative cooperation agreement in tax matters.
Additionally, the applicant must demonstrate that they are a recipient of a pension from abroad. If the relevant information is already on file with the AADE, no additional documentation for tax residency is required. Otherwise, tax residency certificates, tax returns, or other official documents from the country of origin will be requested.
How taxation works
Upon filing the annual income tax return, a unified administrative tax assessment act is issued for the individual, covering both domestic and foreign-sourced income. Specifically, the tax on income arising abroad (Article 5B of the Income Tax Code):
- Is calculated at a flat rate of 7% (unless a tax exemption or different tax treatment is provided under the provisions of Double Taxation Avoidance Agreements or other international treaties).
- Is paid in a lump sum each year, no later than the last working day of December.
- Upon payment, all tax obligations on foreign-sourced income are fully discharged.
- The tax cannot be offset against other tax liabilities or credit balances, nor can it be included in any installment arrangement.
- Any tax already paid abroad may, under certain conditions, be credited against the tax due in Greece up to the corresponding amount. Income earned in Greece is taxed under the general provisions.
Tax payment
If the tax is not paid by the end of December, the taxpayer ceases to fall under the special regime and is thereafter taxed under the general provisions on their worldwide income.
How to apply
Interested parties can submit their application electronically through the myAADE platform, under the “My Requests” section. There is also the option to send the application file by post or courier to the KEFODE offices (in Attica or Thessaloniki), or to submit it in person by appointment. Additionally, applicants can visit the myPoint service centers in Attica, the Tax Service offices, or their local Tax Office (DOY) and receive assistance from AADE staff in completing and submitting their application.
