Tax guide for Americans in Greece
Greece continues to attract expats from around the world with its vibrant culture, favorable climate, and growing economic opportunities. Yet, navigating the Greece tax rate system while maintaining US tax compliance can quickly become complex.
Understanding how local and international tax obligations interact is essential for American expats living in Greece.
Overview of the Greek tax system
Taxation in Greece applies to both residents and non-residents earning income within its borders. While the system includes multiple tax layers, preferential regimes may benefit certain expats. Below are the key facts:
- Greek residents are subject to tax on their worldwide income, while non-residents are taxed solely on income sourced within Greece.
- Personal income tax rates are progressive, reaching up to 44%, with a solidarity contribution applied to higher income levels.
- ENFIA, an annual property tax, is calculated based on the total objective value of real estate holdings.
- Mandatory social security contributions apply on employment income.
- Various preferential regimes offer substantial tax advantages for retirees and high-net-worth individuals, including reduced flat tax rates and specific incentives.
- Corporate entities are taxed at a flat rate of 22%, while dividends, interest, and royalties are generally subject to withholding taxes, which may be reduced under applicable tax treaties.
- The Greek tax year runs from 1 January to 31 December, with online filings due between 15 March and 15 July; any balance owed is paid in eight monthly installments starting at the end of July, or in full by 31 July for a small early-payment discount.
Staying informed about current legislation and international agreements remains critical for both individuals and businesses operating in Greece.
Personal income tax rates in Greece
For US expats residing in Greece, understanding how personal income is taxed locally is crucial for managing cross-border tax obligations and optimizing the use of tax treaties and credits. Greece employs a progressive income tax system, with rates that vary based on income levels and income types. Below is the most current 2025 Greece income tax rate structure.
2025 Greece income tax breakdown
| Taxable income (EUR) | Employment, business & pension income tax rate | Solidarity contribution |
|---|---|---|
| Up to 10,000 | 9% | 0% |
| 10,001 – 20,000 | 22% | 2.2% |
| 20,001 – 30,000 | 28% | 5% |
| 30,001 – 40,000 | 36% | 6.5% |
| 40,001 and above | 44% | 7.5% to 10% |
The solidarity contribution increases progressively beyond EUR 40,001, up to a maximum of 10% for incomes exceeding EUR 220,000.
Rental income tax
For expats who own property in Greece, rental income is taxed separately:
| Taxable rental income (EUR) | Rental income tax rate |
|---|---|
| Up to 12,000 | 15% |
| 12,001 – 35,000 | 35% |
| Over 35,000 | 45% |
Key deductions & credits
- Basic tax reduction: A reduction of up to EUR 1,900 applies for individuals with annual income up to EUR 20,000.
- Tax credit for salaries and pensions: A base credit of EUR 777 applies to singles and married couples without dependents. The credit increases up to EUR 1,780 for families with five children, plus EUR 220 for each additional child. It is gradually reduced by EUR 20 for every EUR 1,000 of income above EUR 12,000.
- Electronic payments requirement: Taxpayers must show qualifying card or online payments equal to 30% of their employment, pension, or business income, up to EUR 20,000. Failing to meet this threshold triggers additional income tax.
- Medical and hospital expenses: Qualifying medical expenses earn a 10% tax credit, capped at EUR 3,000.
- Donations and disability allowance: Donations over EUR 100 receive a 10% tax credit, limited to 5% of taxable income. An additional EUR 200 deduction applies for each disabled household member.
- Alimony payments: Payments made under a notarized agreement are deductible up to EUR 1,500.
- Other deductions: Mandatory social security contributions are fully deductible.
Residency status and tax scope
Residents are taxed on worldwide income. This includes income from employment, self-employment, pensions, rental properties, and investments both within Greece and abroad. Nonresidents are taxed only on Greece-source income but remain subject to the solidarity contribution on this income.
Foreign taxpayers who qualify as non-Greek tax residents may still benefit from certain tax relief provisions if:
- They reside in a European Union (EU) or European Economic Area (EEA) country.
- At least 90% of their worldwide income is sourced from Greece, or their income is low enough to qualify for relief in their country of residence.
Income taxed separately
Certain types of income are subject to separate taxation under the personal income tax framework, including:
- Interest on bank deposits
- Interest on Greek State Treasury Bonds
Some profits from shipping businesses and gains from the sale of shares listed on a stock exchange are exempt from personal income tax.
Greece corporation tax
Greece has consolidated its post-pandemic tax reforms, delivering a headline corporate income tax (CIT) rate of 22% – one of the lowest in southern Europe. Credit institutions that opted into the deferred-tax-asset scheme remain taxed at 29%.
For companies run by US expats, residency is determined by the place of effective management, so Greek rules apply even if board meetings are held abroad. Staying current with taxes in Greece is essential, because late filings trigger surcharges and can erode treaty relief.
1. Standard rate, residency rules, and tax base
- Greece taxes resident entities on worldwide income; non-residents are liable only on Greek-source profits.
- The flat 22% rate covers sociétés anonymes (AEs), limited-liability companies (EPEs), partnerships, and branches of foreign corporations.
- Credit institutions that participate in the DTA regime face a 29% rate, a surcharge designed to backstop deferred tax assets.
- Profits distributed to shareholders attract a 5% dividend withholding tax, down from the historical 10%, with exemptions available under the EU Parent-Subsidiary Directive or an applicable double-tax treaty – including the US–Greece convention.
2. Fiscal year, returns, and payment schedule: Greece’s financial period is typically the calendar year, though a 12-month year ending 30 June is permitted when synchronising with a foreign parent. Corporate tax returns must be filed between 15 March and 15 July following year-end.
The liability – including an 80% current-year pre-payment – is settled in eight equal monthly instalments, the first falling on the last working day of July; voluntary full payment by 31 July unlocks an early-payment discount of up to 4%. This schedule dovetails neatly with US expats’ income-tax deadlines, helping maximise foreign-tax credits on their US returns.
3. Withholding on outbound payments: Dividends are subject to a flat 5% WHT; interest, 15%; royalties and certain technical-service fees, 20%. Treaty-protected recipients, including many US expat investors, can claim lower rates once they provide residency certificates.
Domestic exemptions also apply where EU directives are met (e.g., a 10% minimum shareholding for two years on dividend distributions). The WHT is creditable against Greek income tax for resident recipients and, subject to US foreign-tax-credit rules, against federal liabilities in the United States.
The IRS generally allows US taxpayers to claim a foreign tax credit for Greek withholding taxes on dividends, interest and royalties when properly documented - IRC Section 901
Greek corporate taxation is predictable but unforgiving of missed deadlines. Aligning filing timetables with US requirements preserves foreign-tax credits and avoids double taxation.
Capital Gains Tax
Under the Greek tax system, individuals now pay a flat 15% capital-gains tax on most disposals, separate from their personal income brackets. The rate applies to both listed and unlisted shares, real estate and other assets, creating a single, predictable charge.
Sales of shares quoted on the Athens Exchange also attract a 0.2% transfer duty, while gains may be fully exempt if you hold under 0.5% of the issuer’s capital – always verify before trading. These changes bring welcome clarity for foreigners managing portfolios from Greece.
Companies treat capital gains as ordinary business income taxed at the 22% corporate rate. However, the participation–exemption rules eliminate the charge when a Greek entity sells an EU or qualifying foreign subsidiary stake of at least 10% held for 24 months.
Foreigners operating without a permanent establishment fall outside the scope, but gains realised through a Greek branch remain fully taxable. Every corporate sale of listed shares still triggers the separate 0.1% stock-exchange duty.
Capital gains on Greek property are taxed at the same 15% rate and, importantly, no social security contribution is levied on the profit. Losses booked by 31 December 2023 can offset gains realised through 31 December 2026, offering limited relief to diligent record-keepers.
Other Greek taxes
US expats should account for several non-income levies built into the Greek tax system when planning their overall burden.
Property taxes: ENFIA & transfer duties
ENFIA is assessed on every square metre you own, with the main charge ranging from EUR 2 – EUR 16.20 per m² and a new 20% discount for insured homes worth up to EUR 500,000. Municipal TAP adds 0.025 – 0.035% of the property’s objective value, while a flat 3.09% transfer tax applies on purchases. These real-estate charges sit outside foreign-tax-credit rules, so they give no double taxation relief.
Inheritance & gift tax
Greek succession duties remain progressive: 1 – 10% for close relatives and 0 – 40% for others, all calculated on the objective value of the asset. Only property located in Greece is caught, keeping overseas assets outside local scope. Early structuring can minimise taxes in Greece before wealth passes to heirs.
Social security contributions
From 1 January 2025, EFKA contributions stand at 21.79% for employers and 13.37% for employees – a combined 35.16% that stops once monthly pay exceeds EUR 7,572.62, still counting toward Greek benefits and often creditable against US self-employment tax.
R&D super-deductions, accelerated depreciation for green assets and the headline 50% income-tax exemption for inbound workers can all pull the effective tax rate down when expats are seconded to Greek subsidiaries.
OECD-aligned transfer-pricing rules demand related-party documentation within 60 days of filing the corporate return, and mistakes can trigger penalties of up to 20% of the understated tax – making proactive planning essential.
Stamp duty & digital transaction fees
Traditional stamp duty continues at 3.6% on civil agreements and 2.4% on most commercial contracts. A new digital transaction fee, set to replace stamp duty from 1 January 2025, will observe the same 0 – 3.6% range. Expats executing Greek contracts should budget for these costs alongside other local obligations.
Value Added Tax in Greece
Greece applies a tiered VAT system that affects most aspects of taxation in Greece.
- The standard VAT rate is 24%, with reduced brackets of 13% and 6% for specified goods and services such as fresh food, hotel accommodation and essential medicines. These rates have remained unchanged in 2025.
- On the islands of Leros, Lesbos, Kos, Samos and Chios, each headline rate is cut by 30% – the effective rates are 17%, 9% and 4%. The relief became permanent in 2021 and continues to apply in 2025.
- Public services in health, education, insurance and legal sectors are VAT-exempt, while exports of goods and services remain zero-rated. These exemptions ensure core services stay outside the VAT net even as the broader system evolves.
- Small enterprises with annual turnover under €10,000 may opt out of VAT registration, easing compliance for micro-businesses that many US citizens establish when relocating. Returns are otherwise filed monthly or quarterly, and timely submission is essential to preserve treaty benefits and avoid penalties.
Avoiding double taxation: USGreece tax treaty
US citizens who live or invest in Greece can rely on the long-standing IRS income-tax treaty between the two countries to prevent double taxation. The agreement, first signed in 1950 and still operative in 2025, lets Greece take the primary tax on most Greek-source income while the United States allows a dollar-for-dollar foreign tax credit.
Because the treaty follows the credit rather than exemption method, you must keep proof of Greek tax paid and attach Form 1116 (and, where required, Form 8833) to your US return.
Action checklist for 2025 filings
- Confirm residency status early in the year to know whether you qualify for the Foreign Earned Income Exclusion, the treaty credit, or both.
- Collect Greek tax certificates (βεβαίωση φόρου) before the US June 15 expat filing deadline; they are the IRS’s preferred proof of tax paid.
- File Form 1116 for each income category general, passive, and resourced-by-treaty income to maximise your credit and avoid FTC limitation traps.
- Attach Form 8833 if you invoke any treaty position that overrides normal US rules (for most employees this is not required, but it is obligatory for pensioners claiming Greek-source relief).
- Monitor withholding rates on dividends and interest; reclaim any excess Greek tax via the domestic procedure within two years.
NOTE! US citizens with aggregate foreign financial accounts exceeding $10,000 at any point in the year must also file the FBAR (FinCEN Form 114), separate from their US tax return. Greek checking, savings, brokerage and even certain retirement accounts often trigger this reporting requirement.
Your roadmap to filing and paying Greek taxes
- Step 1: File your annual return online through the government’s TAXISnet portal with your personal username and password.
- Step 2: Include all required forms, most commonly E1 for income, E2 for rental details and E3 for business or freelance profits.
- Step 3: Pay any balance through web banking, credit card, bank branch or standing order no later than 31 July.
- Step 4: Act promptly: late filings or payments trigger a 0.73% monthly interest charge – plus fixed penalties that climb quickly once reminders go out.
Need help filing taxes in Greece?
Balancing Greek filings with US obligations can be overwhelming – but not with TFX in your corner. Are you considering a free tax consultation? Our specialists blend treaty relief and US exclusions to trim your bill and keep the IRS happy.
