Greece Income Tax: Rates and Rules for Individuals

The Greek income tax system operates on a progressive basis, applying to the earnings of individuals. This system is relevant for both Greek tax residents and non-residents who generate income within the country. The structure is designed to tax various forms of income at different rates, reflecting a taxpayer’s total earnings. Understanding one’s obligations under this framework is a preliminary step for any individual with financial ties to Greece.

Determining Greek Tax Residency

An individual’s tax residency status in Greece is a primary determinant of their tax obligations. The most straightforward measure is the 183-day rule, which designates anyone physically present in the country for more than 183 days within a single tax year as a tax resident. The tax year in Greece aligns with the calendar year, from January 1st to December 31st.

Beyond the physical presence test, Greece employs the “center of vital interests” concept to determine tax residency. This assessment examines an individual’s personal, economic, and social ties to the country. Factors considered include the location of a permanent home, family connections, and the primary place of economic activities. An individual may be deemed a tax resident if their life is more closely connected to Greece than any other nation, even if they spend fewer than 183 days in the country.

The distinction between residents and non-residents has significant tax consequences. Greek tax residents are taxed on their worldwide income, meaning all income earned both within Greece and abroad must be declared. In contrast, non-residents are subject to tax only on income that originates from Greek sources. For example, a person who moves to Athens and works for a local company for ten months is a tax resident, while an individual living abroad who only rents out a vacation villa in Crete is a non-resident, taxed solely on that rental income.

Taxable Income Categories and Rates

Greek tax law categorizes income, applying specific tax scales and rates to each type. The main categories include employment and pension income, business or professional income, rental income, and investment income. This structure requires taxpayers to first identify the source of their earnings before calculating their tax liability.

Employment and Pension Income

Income from salaries, wages, and pensions is aggregated and taxed according to a progressive scale. The rates are as follows:

• Up to €10,000: 9%
• €10,001 to €20,000: 22%
• €20,001 to €30,000: 28%
• €30,001 to €40,000: 36%
• Over €40,000: 44%

Business/Professional Income

Income earned from business activities or freelance professions is combined with any employment or pension income and taxed under the same progressive scale.

Rental Income

Income from the rental of immovable property is taxed separately under its own progressive scale. For annual rental income up to €12,000, the tax rate is 15%. Income between €12,001 and €35,000 is taxed at 35%, while any rental income exceeding €35,000 is taxed at 45%.

Investment Income

Investment income is subject to flat withholding tax rates depending on its type:

• Dividends from Greek entities: 5%
• Interest income: 15%
• Royalties: 20%
• Capital gains from the sale of securities: 15%

Available Tax Deductions and Credits

Taxpayers in Greece can reduce their final tax liability through specific deductions and credits. A primary mechanism is a tax credit linked to expenses paid through electronic means. To qualify, taxpayers must spend 30% of their income on qualifying goods and services using credit cards, debit cards, or bank transfers.

Qualifying expenses include purchases from most retail stores, supermarkets, and service providers. The maximum tax credit that can be claimed through this system is capped, providing a direct reduction in the amount of tax owed.

Other deductions are available for specific types of expenditures. Donations made to public universities, the state, and other designated philanthropic institutions can be deducted from taxable income. These deductions are subject to certain limits and require official documentation.

Special Tax Regimes for Foreigners

Greece offers alternative tax regimes designed to attract foreign individuals, including investors, retirees, and professionals. These optional systems provide a different method of taxation, and individuals must meet specific criteria and formally apply to be included.

One option is the non-domiciled, or “non-dom,” regime, aimed at high-net-worth individuals who transfer their tax residency to Greece. Under this regime, the individual pays an annual lump-sum tax of €100,000, which covers all foreign-source income. The regime can be extended to family members for an additional annual fee and is available for a maximum of 15 years.

Another program is the 7% flat tax for foreign pensioners. Retirees who transfer their tax residency to Greece can apply to have their foreign-source pension and other investment income taxed at a flat rate of 7%. To be eligible, the individual must not have been a Greek tax resident for at least five of the previous six years, and this regime also has a maximum duration of 15 years. A third regime allows certain employees and freelancers to have 50% of their Greek-source income exempt from taxation for up to seven years.

The Annual Tax Filing Process

The process of filing an annual income tax return in Greece is a digital-first procedure. Before filing, an individual must obtain a Greek tax identification number, known as an AFM. This unique number is a prerequisite for all financial transactions and tax-related activities, including registering for the official Taxisnet online portal for all tax submissions.

The annual income tax return, designated as Form E1, is submitted electronically through the Taxisnet portal. Taxpayers are required to declare all their income from the preceding calendar year, categorized according to the sources. The system often pre-populates certain income information, such as salaries and pensions, which taxpayers must verify for accuracy.

The deadline for submitting the annual tax return for the 2024 tax year is July 15, 2025, though extensions are common. After the return is submitted, the tax authority issues a tax assessment notice detailing the final tax liability or refund. If tax is owed, the payment is usually scheduled in a series of installments, with the first payment due by the end of July. Late filing can result in a penalty of €100 for individuals.