Moving to…Greece
I am going to bet that with world news being what it is, more than a few of you are dreamy of a peaceful place overlooking turquoise waters, maybe with an olive tree for shade? And at this point, you may even be thinking of one day living in such a place. If you are contemplating a move to Greece, this article is for you.
Getting there (and staying)
Let’s start with the basics. Like other European countries, Greece has several long-stay visa options for non-EU citizens wanting to resettle. You can, of course, come over as part of a work assignment, be hired by a Greek employer or claim EU citizenship through a family member. But outside of these routes, there are three particularly common ways to move to Greece.
The Financially Independent Persons visa (FIP)
Appropriate for retirees or those taking a long sabbatica, this first option does not come with the right to work in Greece. If you want to keep working, even part-time for yourself or your employer while abroad, skip to the Digital Nomad visa below.
A financially independent person is just what the name says. A sole applicant must prove that she or he has at least 2,000 € per month in regular, non-salary income (as of November 2024). The threshhold increases by 20% for a couple and 15% for each minor child on the visa. Your income can be in the form of savings. But if you take this route, you will need to transfer enough savings to cover the entire two-year period of your residency permit into a Greek account.
You can renew your residency permit after the initial period and receive three-year residency permits from there on out. Each time, you will need to meet the minimum financial requirements.
The Digital Nomad visa
This visa allows you to work as a freelancer or as an employee of a foreign company while living in Greece. You need to assure the Ministry that you will not be doing any work for employers or clients inside Greece, which can add a few extra months to the application process. You also need to prove that you have income of at least 3,500 € per month after tax. As with the FIP, this minimum increases by 20% for a spouse and 15% for each minor child.
The Digital Nomad visa comes with a 2 year residency permit, which is renewable every two years as long as you meet minimum income requirements.
The Golden visa
The so-called “Golden Visa” requires an investment of between 250,000 € and 800,000 €, depending on the details of what you are investing in and where. It provides the right to work and a five-year renewable residency permit for you, your spouse and your minor children. While most long-term residents of Greece participate in the national health care system and pay the appropriate contributions, this visa comes with an exemption that can save you some of the social charges but does mean you will still need to find appropriate private insurance for health care, in particular.
Income Taxes for Expats
First things first
As a US citizen or greencard holder, you should understand that your country taxes you on any and all income, regardless of where in the world it comes from and regardless fo where you are actually living. Thanks to what is known as the “savings clause” common in US tax treaties, the US will often do this even when a treaty seems to give the right of taxation to the other country.
This practice creates a messy situation for US expats worldwide, who are expected to pay taxes in the country where they actually live and one they aren’t even in (the US). So the US generally lets you take either a foreign earned income exclusion (the “FEIE”) up to a certain limit for income earned abroad through work. For other types of income, the US will often allow a credit against your US tax bill for taxes you paid in the other country. Every country and form of income is different, so you will need to get specific tax advice for your situation. \
Nonetheless, here is an overview of questions that frequerntly come up for American expats living in Greece.
Retirement income
The Income Tax Treaty between the US and Greece (link below) provides that pensions from a former US federal government job will be taxed exclusively in the US. But any other retirement income, including retirement account withdrawals, pension benefits and annuity payments from private employment, are taxed in the country where the taxpayer resides, even if those were earned in the other country. Which means that your social security, 401k, 403b, IRA and other retirement benefits will almost certainly be taxed in Greece.
This tax on retirement income could operate as a deterrent for retirees moving to Greece. So in 2020, the country put in place a new tax regime to welcome retirees from certain countries, including the US. Under the new regime, retirees pay a flat 7% tax on all of their foreign passive income, including retirement accounts, rental income, etc… The regime lasts 15 years before you revert back to the usual Greek income tax brackets. It is applied to each adult in the household separately -- Greece uses a system of personal, rather than household taxation.
You do need to apply to use the regime, so be sure to consult a tax professional if you make the move.
Side note: the Greek government also instituted a 100,000 € “flat tax” and a non-dom status for extremely wealthy individuals, which you might come across in internet searches. But if a 100,000 € tax bill looks like a bargain, you should probably just pay your taxes.
Salaried or self-employment income
Now, let’s say you have come over and plan to work. Under Greek law 4825/ 2021, which created the digital nomad visa, you have no income tax liability in Greece if you do not stay more than 183 in the tax year. This means, of course, that you don’t become a Greek tax resident, and you are on your own for health insurance and other social services.
You can still get a tax break if you choose to become a Greek tax resident though. And this comes with full participation in the social system, including health care. The special tax reduction for tax-resident digital nomads is 50%. You must agree to stay at least two years in the country, and the reduction lasts up to seven years, depending on your circumstances.
So how do Greek income taxes work? Greece uses a progressive tax scale, just as the US does, in which you pay a certain percentage for the base part of your income, a higher percentage for the next part of your income, and so on.
The actual 2024 scale looks like this (we’ve put the resulting taxes per bracket in parentheses):
First 12,000 € 0% (0 €)
12,000 €- 16,000 € 18% (720 €)
16,000 € - 22,000 € 24% (1440 €)
22,000 € - 26,000 € 26% (1040 €)
26,000 € - 32,000 € 32% (1920 €)
32,000 € - 40,000 € 36% (2880 €)
40,000 € - 60,000 € 38% (7600 €)
60,000 € - 100,000 € 40% (16,000 €)
Over 100,000 € 45%
Under this system, then, a person earning 40,000 € would pay 8,000 € in taxes. A person earning 101,000 € would pay 31,600 €, an effective tax rate of 31.6%, despite their maximum tax rate (on that last €) being 45%. A digital nomad taking advantage of the tax reduction above would pay half the rate of each bracket.
Investment income & Capital gains
If you have a bank account, money market account, CD’s, or investments outside your retirement accounts, you have investment income. This is generally in the form of interest or dividends. Capital gains can also arise from the sale of shares or bonds in your investment accounts, but also from the sale of real estate, art or other investments outside of brokerage accounts.
Greece has notoriously low tax rates on investment income, generally either 0%, 5% or 15%, depending on the type of investment. The US will tax US citizens on investment income, but tax credits are available to avoid paying twice. So, American expats living predominantly on investments might not see much change in income taxes from their move.
Other taxes
In addition to income taxes, Greek tax residents might pay: property taxes, social security taxes on payroll, VAT (value-added tax) on certain goods you purchase, and local taxes. Note that social security charges vary significantly within the Greek system.
Receiving a gift or inheritance while you are resident in Greece
Greece and the US both tax gifts and inheritances. But the US offers, in general, larger exemptions before the tax is paid. The two countries have a treaty specifically dealing with gifts and inheritances. But expats should expect to hire a specialist to revisit any estate plans or intended large gifts, preferably before the move.
US social security
If you are working, living and paying entirely into the Greek social system, you will not need to also pay US social security taxes. The Greece-US social security totalization agreement also determines how you receive a pension from one or both countries at retirement.
Ready to move? Remember that this article is an introduction. For advice specific to your situation, you should consult a attorney or accountant with expertise in Greek-American moves. There are many good ones form which to choose!
And before you go, note these US forms that are often required by the US government for Americans living abroad:
FBAR / FINCEN 1114
To report that you had more than $10,000 total in your foreign-held accounts (including some insurance policies0 at any point in the year.
FATCA / Form 8938
To report that you had more than $200,000 in foreign assets on the last day of the year if a single filer ($400,000 for married filing jointly) or $300,000 ($600,000 for joint filers) at any time during the year.
Form 3520
To report that you received a substantial gift from a foreign person, business or trust (see https://www.irs.gov/instructions/i3520 for details)
Form 5471
To report ownership in a foreign corporation (see https://www.irs.gov/instructions/i5471).
Greece-US Income Tax Treaty: https://www.irs.gov/pub/irs-trty/greece.pdf
Social Security Totalization Agreement: https://www.ssa.gov/international/Agreement_Pamphlets/documents/Greece.pdf.