Five Years Abroad Now Enough to Avoid Greek Tax

10:08 26/6/2025 - Πηγή: Dikaiologitika

Greece is introducing sweeping tax reforms aimed at attracting expatriates, foreign investors, and former residents back to the country. Among the key changes is a significant reduction in the required period of residence abroad for exemption from Greek taxation on movable assets held outside the country.

Under existing Greek

tax law, citizens had to prove they had been living abroad continuously for at least ten years in order to qualify for exemption from Greek tax on foreign-based movable assets—such as overseas bank accounts or shares. A new provision, included in the Ministry of National Economy and Finance’s draft bill on the National Customs Code, now cuts that period in half. From now on, five years of continuous residence abroad will be sufficient to claim the exemption, provided the individual is not a public sector employee or military personnel stationed overseas by the Greek state.

This change is part of a broader legislative effort to modernize the tax regime for individuals with ties to Greece who live or work abroad. It also introduces major adjustments to special tax regimes for those relocating their tax residency to Greece, including both Greek nationals returning home and foreigners seeking to establish a base in the country.

One of the most notable provisions affects individuals with income from foreign sources, such as investments or property rentals. Under Article 5A of the Greek Income Tax Code, these taxpayers can now opt for a favorable flat-tax regime, paying a fixed annual tax of €100,000 regardless of the actual amount of their foreign income. Importantly, the amendment allows this option to be exercised at any point within a 15-year window following their move to Greece, rather than solely at the time of their initial relocation.

This flexibility means that someone returning to Greece in 2025 could decide to adopt the flat-tax regime in 2026—or even later—within that 15-year period. The regime can also be extended to close family members, such as a spouse or children, for an additional €20,000 per person annually.

The benefits go further. Individuals enrolled in this scheme will also be exempt from inheritance and gift taxes on movable assets located abroad. For example, if someone under the scheme inherits foreign shares or receives a gift of overseas bonds, those assets will not be subject to Greek tax—even if they are later transferred to someone else.

Additional provisions are tailored specifically for foreign pensioners who relocate their tax residence to Greece. These retirees may apply for the special tax status annually by March 31 and benefit from tax relief, while the Greek authorities will coordinate with the tax agencies of their country of origin, provided reciprocal agreements are in place. For example, if a Greek pensioner living in Germany moves back to Greece, the Greek tax office will notify the German authorities of the change in tax residency.

Similar incentives are being introduced for employees and freelancers relocating to Greece. For seven years, these individuals will be taxed on only 50% of the income they earn from work or business conducted in Greece. In practical terms, this means that a returning professional earning €60,000 annually would be taxed as if they were earning just €30,000.

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