Tax guide for Americans in Greece

Greece continues to attract US expats with its culture, climate, and expanding remote-work options, including the Digital Nomad Visa (E33A) route for eligible non-EU nationals. Yet navigating the Greece tax rate system while staying compliant with US tax rules can quickly become complex.

Understanding how Greek residency, local tax filings, and US reporting overlap is essential for Americans moving to Greece from the US. Greek individual tax returns for the 2025 tax year are due by July 15, 2026, through AADE’s online filing system.

The following 5 points are the key 2026 takeaways for Americans in Greece:

• Filing period: March 15 – July 15
• CIT: Flat 22%
• VAT: Standard 24%
• Residency: 183-day rule
• Solidarity contribution: Abolished for private sector income and pensions

Overview of the Greek tax system

Taxation in Greece applies to residents on worldwide income and to non-residents on Greek-source income. For 2026 filings, Americans should pay close attention to residency status, Greek-source income, VAT, property taxes, and whether a US foreign tax credit can reduce double taxation.

The following key facts explain how the Greek tax system usually affects US expats:

• 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%. Note that the Special Solidarity Contribution has been abolished for private sector income and pensions.
• 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. These may be especially relevant for Americans planning to retire in Greece.
• Corporate entities are taxed at a flat rate of 22%, while dividend tax Greece, interest, and royalties are generally subject to withholding taxes, which may be reduced under applicable tax treaties.
• The Greek tax year runs from January 1 to December 31, with online filings due by July 15, 2026, for the 2025 tax year.
• 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 2026 filings, Greece income tax rates matter because Greece taxes residents on worldwide income and non-residents only on Greek-source income. US expats who become Greek tax residents must report employment, business, pension, rental, and investment income from Greece and abroad, while non-residents generally report only Greece-source income.

2026 Greece income tax breakdown

Greece’s 2026 personal income tax brackets remain progressive, starting at 9% and reaching 44%. The updated brackets below reduce several middle-income rates compared with prior-year tables, and the solidarity contribution column has been removed.

For 2026, employment, business, and pension income is taxed from 9% to 44%, with lower middle brackets than in previous years.

 

For 2025 income filed in 2026, confirm whether the 2025 or 2026 tax-year scale applies before calculating tax. Greece’s 2026 reform reduces several personal income tax brackets for income earned from January 1, 2026 onward.

Rental income tax

Rental income from Greek property is taxed separately from employment, pension, and business income. For US expats who own apartments, island homes, or inherited property in Greece, the rental income Greece scale starts at 15% and reaches 45%.

Greek rental income is taxed separately from Greece salary tax and business income, with rates from 15% to 45%.

Key deductions and credits

Greek deductions and credits can reduce the final tax bill, but several depend on income type, family status, documentation, and electronic payment records. For 2026 filings, the 30% electronic payments rule remains especially important for employees, pensioners, and business owners.

• Basic tax reduction: A reduction of up to EUR 1,900 applies for individuals with an 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 generally show qualifying card or online payments equal to 30% of employment, pension, or business income, up to EUR 20,000. For 2026, qualifying electronic payments must generally be made through Greek or EU banking instruments, so US credit cards and non-EU payment apps may not always count.
• 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

Greek tax residency controls whether Greece taxes only Greek-source income or worldwide income. Residents are taxed on worldwide income, while non-residents are taxed only on taxable income from Greek sources unless a treaty changes the result.

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. Foreign taxpayers who qualify as non-Greek tax residents may still benefit from certain tax relief provisions if they reside in an EU or EEA country and 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.

Qualifying new Greek tax residents may also consider the Brain Gain or inbound worker incentive, which can provide a 50% income tax exemption for up to 7 years when the statutory conditions are met.

Income taxed separately

Certain types of income are subject to separate taxation under the personal income tax Greece 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.

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Greece corporation tax

Greece has consolidated its post-pandemic tax reforms, delivering a headline corporate income tax rate of 22% for 2026. For US expats running Greek companies, the main risk is not the rate itself but missed filings, incorrect residency treatment, and incomplete digital bookkeeping.

The 22% CIT rate remains the standard for 2026. 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 may apply even if some board meetings are held abroad. Staying current with taxes in Greece is essential because late filings can trigger surcharges and erode treaty relief.

The following 3 corporate tax points matter most for US expat-owned businesses:

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, limited-liability companies, partnerships, and branches of foreign corporations.
2. Fiscal year, returns, and payment schedule: Greece’s financial period is typically the calendar year, though a 12-month year ending June 30 is permitted when synchronizing with a foreign parent. Corporate tax returns must be filed between March 15 and July 15 following the year-end.
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.

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.

Greece is also increasing its focus on myDATA and digital reporting. US expat-owned businesses should keep their Greek e-invoicing and bookkeeping aligned with AADE’s myDATA platform, especially where Form E3 amounts are prefilled from digital records.

Capital Gains Tax

Under the Greek tax system, individuals may be subject to 15% capital gains tax on certain securities and other taxable gains, but Greek capital gains tax on transfers of immovable property is suspended through December 31, 2026.

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 tax on transfers of Greek immovable property is currently suspended through December 31, 2026. Other property-related taxes or transfer costs may still apply.

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, and Greek real estate also carries transfer and municipal taxes outside the income tax system. For 2026, the 20% discount for insured homes is fully operational for properties under €500,000.

ENFIA is assessed on every square metre you own, with the main charge ranging from EUR 2 – EUR 16.20 per m² and a 20% discount for insured homes worth up to EUR 500,000. Ensure your insurance policy meets the AADE criteria by the end of the previous tax year.

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 the local scope. Early structuring can minimise taxes in Greece before wealth passes to heirs.

Social security contributions

EFKA contributions remain a major employment cost in Greece, with the combined standard rate at 35.16%. For 2026, the monthly salary cap is subject to annual indexation, so US expats on the Greek payroll should confirm the current cap before calculating net pay.

EFKA contributions stand at 21.79% for employers and 13.37% for employees – a combined 35.16% that stops once monthly pay exceeds the applicable indexed cap. These contributions still count toward Greek benefits and may affect the US self-employment tax analysis.

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.

Stamp duty and Digital transaction fee

Greece is increasingly digitizing transaction taxes, and the Digital Transaction Fee partly replaces traditional stamp duty from 2025 onward. US expats signing Greek leases, loans, or commercial agreements should budget for 0% – 3.6%, depending on the contract type.

Traditional stamp duty continues at 3.6% on civil agreements and 2.4% on most commercial contracts where it still applies. The Digital Transaction Fee observes the same 0% – 3.6% range in covered cases, reflecting Greece’s gradual shift away from paper-based stamp duty rules.

Value Added Tax in Greece

Greece applies a tiered VAT system that affects most aspects of taxation in Greece. In 2026, the standard VAT rate remains 24%, with reduced rates of 13% and 6% for specified goods and services.

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.

The 30% VAT reduction applies to Chios, Kos, Lesvos, Leros, Samos, and certain other eligible islands, including specified North Aegean, Samothraki, and Dodecanese islands subject to population and legal conditions.

Public services in health, education, insurance, and legal sectors are VAT-exempt, while exports of goods and services remain zero-rated. These exemptions keep core services outside the VAT net even as the broader system evolves.

Small enterprises with an annual turnover under €10,000 may opt out of VAT registration, easing compliance for micro-businesses that US citizens establish when relocating. Returns are otherwise filed monthly or quarterly.

In 2026, Greece continues to digitize VAT reporting through the Timologio app, which is mandatory for US expats running small businesses in Greece.

Charging Greek VAT? Learn how US reporting fits with your business.

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Avoiding double taxation: US-Greece tax treaty

The 1950 treaty remains the backbone of US-Greece tax relations in 2026. US citizens who live or invest in Greece can rely on the long-standing IRS income-tax treaty between the two countries to help prevent double taxation, but the treaty applies to income taxes and does not cover the Greek Digital Transaction Fee.

The agreement 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 Greek tax assessments, withholding certificates, and payment records to support any Foreign Tax Credit claimed on Form 1116.

Action checklist for 2026 filings

US expats in Greece should organize treaty, credit, and foreign account reporting before the June 15, 2026, US expat deadline. The main goal is to preserve foreign tax credits, avoid duplicate tax, and prevent missed reporting for Greek bank or brokerage accounts.

The following 5 actions help reduce filing issues for 2026:

• Confirm residency status early to claim the Foreign Earned Income Exclusion (FEIE). For 2025 income filed in 2026, the FEIE limit is $130,000. For 2026 income, the limit is $132,900.
• 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 maximize 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 may be required for treaty-based pension positions.
• Monitor withholding rates on dividends and interest; reclaim any excess Greek tax through 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 certain retirement accounts may trigger this reporting requirement; see how FBAR differs from FATCA Form 8938.

Your roadmap to filing and paying Greek taxes

Greek tax filing is handled online through AADE, and the 2025 individual income tax return is due by July 15, 2026. For US expats, the key is matching Greek filing records with US Form 1040, Form 1116, and any FBAR or FATCA reporting.

• Step 1: File your annual return online through the government’s TAXISnet or myAADE system 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. AADE confirms that E2 and E3 may be co-submitted with the personal income tax return when required.
• Step 3: Track qualifying electronic payments during the year. The Appodixi app helps taxpayers check receipts and supports Greece’s broader enforcement of electronic spending records, which matter for the 30% electronic payments requirement.
• Step 4: Pay any balance through web banking, credit card, bank branch, or standing order according to the 2026 payment schedule.
• Step 5: Act promptly if you miss a deadline. Late filings or payments can trigger monthly interest and fixed penalties that increase the longer the issue remains unresolved.

Need help filing taxes in Greece?

US expats in Greece often need to coordinate 2 systems at once: Greek tax filing and US worldwide income reporting. TFX can help you organize 2026 filing needs, foreign tax credits, FBAR reporting, and Streamlined Filing if you are behind on prior US returns.

Behind on US taxes while living in Greece? The Streamlined Filing Compliance Procedures may help eligible expats catch up without the standard late-filing penalty exposure.

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