Expat’s Guide to Taxes and Social Security in Greece: Navigating Your Financial Responsibilities

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Table of Contents

• Introduction: Understanding Your Tax Obligations in Greece
• Tax Residency Status in Greece
• Income Tax Obligations for Expats
• Greek Social Security System (EFKA)
• Property Taxes for Foreign Residents
• Special Tax Regimes and Incentives
• Maintaining Tax Compliance
• Your Practical Path Forward: Mastering Greek Taxation
• Frequently Asked Questions

Introduction: Understanding Your Tax Obligations in Greece

Relocating to Greece with its Mediterranean lifestyle, rich cultural heritage, and stunning landscapes is undeniably appealing. Yet behind those sun-drenched dreams lies a practical reality: navigating the Greek tax and social security system.

Whether you’re sipping coffee in a seaside Athens apartment, working remotely from a Cycladic island, or planning to buy house in greece, understanding your financial obligations isn’t just a legal requirement—it’s essential for your long-term peace of mind.

Throughout this guide, we’ll decode the sometimes complex world of Greek taxation for foreigners. We’ll explore how residency status affects your obligations, break down the social security system, and highlight special tax incentives that might benefit you as an expat. Ready to transform potential tax confusion into strategic clarity? Let’s begin.

Tax Residency Status in Greece

Let’s cut to the chase: your tax obligations in Greece hinge critically on whether you’re considered a tax resident. This isn’t simply about having a Greek address—it’s a defined legal status with significant financial implications.

Determining Your Tax Residency

In Greece, you’re generally considered a tax resident if:

• You spend more than 183 days in Greece during any calendar year
• Your “center of vital interests” (personal, economic, or social ties) is in Greece
• You’re a Greek diplomat or public servant serving abroad

Real-world scenario: Michael, a British digital nomad, initially planned to spend just summers in his rented Corfu apartment. However, when COVID-19 struck, he extended his stay to nine months. Despite his intentions, he automatically became a Greek tax resident for that year, requiring him to report his worldwide income to Greek authorities.

The distinction between resident and non-resident status isn’t merely administrative—it fundamentally changes what income Greece can tax.

Resident vs. Non-Resident Tax Obligations

“Understanding your residency status is the cornerstone of proper tax planning in Greece,” explains Maria Koutsopoulou, a tax attorney specializing in expat taxation. “Many newcomers mistakenly assume casual stays won’t trigger tax residency, only to find themselves facing unexpected obligations later.”

Income Tax Obligations for Expats

Once your residency status is established, you’ll need to understand exactly how Greece taxes your income. The Greek income tax system operates on a progressive scale, with rates increasing as your income rises.

Progressive Tax Rates for Employment Income

For 2023, employment income is taxed at the following rates:

Beyond these baseline rates, you’ll also encounter a “solidarity contribution” surcharge on income exceeding €12,000, though this has been temporarily suspended through 2023 as part of COVID-19 relief measures.

Self-Employment and Business Income

For many expats in Greece, particularly digital nomads and consultants, self-employment taxation is particularly relevant. If you’re operating as a self-employed individual or freelancer, you’ll need to:

• Register with the tax authority (obtain an AFM number)
• Issue legal receipts for services (typically through the myDATA electronic platform)
• File quarterly VAT returns if your annual income exceeds €10,000
• Maintain accounting books appropriate to your business size

Case study: Elena, a German graphic designer, moved to Thessaloniki in 2021 while continuing to serve her international clients. Initially reluctant to formalize her status, she operated informally until learning about the potential penalties. After properly registering as self-employed, she not only gained peace of mind but discovered she qualified for Greece’s special tax regime for digital nomads, reducing her effective tax rate significantly.

“Self-employed expats often underestimate the importance of proper business documentation in Greece,” observes Nikos Dimitriou, an accountant specializing in expatriate clients. “The tax authorities have significantly increased their enforcement capabilities through digitalization, making compliance increasingly important.”

Greek Social Security System (EFKA)

Beyond taxation, understanding your social security obligations is crucial when living in Greece. The unified Greek social security system (EFKA) covers healthcare, pension, and other social benefits.

Social Security Contributions for Employees

If you’re employed by a Greek company, social security contributions are split between you and your employer:

• Employee contributions: Approximately 14-16% of gross salary (withheld at source)
• Employer contributions: Approximately 22-24% of gross salary

These contributions fund your access to the Greek healthcare system, future pension benefits, and various social programs. The exact percentages can vary slightly based on profession and risk classification.

Self-Employed Social Security Obligations

For self-employed individuals, the EFKA system works differently. You’ll need to make monthly contributions based on a combination of assumed income classes and actual declared income.

As of 2023, minimum monthly contributions start at approximately €210 for new professionals, increasing over time. These payments cover both healthcare and future pension benefits.

Pro tip: Keep all receipts of EFKA payments carefully. They’re not only tax-deductible but essential for verifying your healthcare coverage status when visiting doctors or hospitals.

International Agreements and Coverage

Greece maintains social security agreements with numerous countries, including most EU nations, the UK, the US, Canada, and Australia. These agreements can help you:

• Avoid double social security payments in multiple countries
• Transfer or combine pension rights
• Maintain healthcare coverage during transition periods

“Many expats are unaware they might qualify to remain in their home country’s social security system temporarily,” notes Dr. Andreas Matsagas, an international social security consultant. “For example, EU citizens posted to Greece for work can often continue their home social security coverage for up to 24 months under the A1 certificate program.”

Property Taxes for Foreign Residents

If you’re among the many expats who buy house in greece, understanding the associated tax obligations is essential. Property ownership in Greece triggers several specific taxes regardless of your residency status.

ENFIA (Unified Property Tax)

The most significant ongoing property tax is ENFIA (Ενιαίος Φόρος Ιδιοκτησίας Ακινήτων), which applies to all property owners in Greece, whether resident or non-resident. This annual tax consists of:

• Basic tax: Calculated based on property size, location, age, and usage
• Supplementary tax: An additional tax on total property value exceeding €300,000

ENFIA payments are typically divided into installments throughout the year. The good news is that recent reforms have reduced ENFIA rates by 13-30% for most properties, providing some relief to property owners.

Real-world example: Thomas, a Dutch retiree, purchased a 120m² villa in Crete for €280,000. His annual ENFIA amounts to approximately €650, payable in monthly installments through his tax account. While initially surprised by this recurring cost, he now builds it into his annual budget alongside maintenance and utilities.

Transfer Taxes and Capital Gains

When buying or selling property, you’ll encounter additional taxes:

• Property transfer tax: 3% of the property’s assessed value (payable by the buyer)
• Capital gains tax: 15% on profit when selling (with certain exemptions for primary residences)
• Various fees: Notary fees, registration costs, and legal expenses (typically totaling 2-3% of the property value)

“Strategic timing of property transactions can significantly impact your tax position,” advises Eleni Papadopoulou, a real estate tax specialist. “For instance, holding property for longer periods or timing sales to coincide with tax residence in a favorable jurisdiction can optimize your position.”

Special Tax Regimes and Incentives

Greece has introduced several attractive tax regimes specifically designed to attract foreign residents and investment. These programs can offer substantial benefits for qualifying expats.

Non-Dom Tax Regime

Introduced in 2020, the non-dom program allows wealthy individuals to become Greek tax residents while paying a fixed annual tax of €100,000 on their foreign-source income, regardless of amount. To qualify, you must:

• Invest at least €500,000 in Greek real estate, businesses, or government bonds
• Not have been a Greek tax resident for 7 of the 8 years prior to application
• Maintain the investment for the duration of the special tax treatment

This regime can be especially attractive for high-net-worth individuals seeking to optimize their global tax position while enjoying Greece’s quality of life.

Digital Nomad Tax Incentive

In response to the growing remote work trend, Greece introduced a special tax regime for digital nomads in 2021. Qualifying individuals receive:

• 50% tax exemption on employment or self-employment income for 7 years
• Simplified residency procedures

To qualify, you must:

• Relocate to Greece from abroad (not having been a Greek tax resident for 5 of the 6 previous years)
• Provide services primarily to foreign entities
• Meet minimum income requirements (currently €40,000 annually)

“The digital nomad program represents one of the most competitive tax offerings in the EU,” notes George Vyzantios, a tax policy researcher. “Combined with Greece’s relatively low cost of living, it creates a compelling proposition for location-independent professionals.”

Maintaining Tax Compliance

Staying compliant with Greek tax regulations isn’t just about avoiding penalties—it’s about creating a stress-free foundation for your life in Greece.

Essential Documentation and Deadlines

Mark these key tax dates and requirements in your calendar:

• Annual income tax returns: Typically due between April and July (exact dates vary yearly)
• ENFIA property tax payments: Usually divided into monthly installments
• VAT returns: Quarterly for most businesses (monthly for larger operations)
• Social security payments: Monthly for self-employed individuals

Pro tip: The Greek tax system operates primarily through the TAXISnet online platform. Ensure you maintain access to your account credentials and keep your contact information updated to receive important notifications.

Working with Greek Tax Professionals

Given the complexities of Greek tax law—especially for foreigners—working with a qualified accountant (λογιστής) is virtually essential. A good tax professional can:

• Help you optimize your tax position legally
• Ensure accurate and timely filing
• Represent you in communications with tax authorities
• Advise on strategic decisions with tax implications

When selecting a tax professional, prioritize someone with experience working with expats, English language skills (if needed), and familiarity with international tax treaties relevant to your situation.

“Many expats underestimate the importance of proper tax planning in Greece,” cautions Christos Alexandris, a tax advisor specializing in expatriate clients. “The penalties for non-compliance can be severe, including fines of up to 100% of unpaid taxes, monthly interest accruals, and potential criminal charges for significant violations.”

Your Practical Path Forward: Mastering Greek Taxation

The Greek tax system need not be a labyrinth of confusion. With strategic planning and proper guidance, you can navigate it confidently and focus on enjoying your Mediterranean lifestyle. Here’s your action plan for tax success in Greece:

1. Determine your residency status early. Don’t wait until tax season—understand from day one whether you’ll be considered a Greek tax resident and plan accordingly.
2. Establish proper documentation systems. Set up organized digital and physical filing systems for all tax-relevant documents—receipts, contracts, proof of foreign tax payments, and official communications.
3. Evaluate special regime eligibility. If you might qualify for the non-dom or digital nomad programs, explore these options before establishing standard tax residency.
4. Secure qualified professional help. Interview multiple tax professionals to find someone who understands both Greek requirements and your international situation.
5. Implement calendared reminders. Greek tax deadlines can have serious consequences if missed—set up automated reminders well in advance of key dates.

Remember: Your tax situation isn’t static. Life changes—from marriage to property acquisition to business ventures—can significantly impact your Greek tax position. Schedule annual “tax strategy reviews” with your advisor to ensure your approach remains optimized as your circumstances evolve.

How might Greece’s ongoing digital transformation of tax administration affect your compliance approach in the coming years? As the country continues modernizing its systems, staying ahead of these changes will become increasingly important for financial peace of mind.

Frequently Asked Questions

Do I need to pay Greek taxes if I work remotely for a foreign company?

If you’re a Greek tax resident (spending 183+ days in Greece), you’re generally required to pay Greek taxes on your worldwide income, including remote work for foreign employers. However, you may qualify for the special digital nomad tax regime, offering 50% income tax relief for 7 years if you meet specific criteria. Double taxation agreements may also provide relief from paying taxes twice on the same income.

How do I obtain a Greek tax number (AFM) as a foreigner?

To obtain an AFM (Αριθμός Φορολογικού Μητρώου), visit your local tax office (DOY) with your passport, residency permit or certificate (for EU citizens), and proof of address in Greece (utility bill or rental agreement). Non-EU citizens typically need their residence permit first. Many expats hire a tax consultant or lawyer to assist with the process, as appointment scheduling and documentation requirements can be challenging without Greek language skills.

Can I continue contributing to my home country’s pension system while living in Greece?

This depends on international agreements between Greece and your home country. EU citizens can often continue home country contributions for up to 24 months using the A1 certificate. For longer stays, you typically must join the Greek system. Non-EU citizens should check if bilateral social security agreements exist (e.g., the US-Greece agreement). Without such agreements, you may face dual contribution requirements. Consult with both Greek and home country social security experts to determine your optimal strategy.

Article reviewed by Everett Bellingrath, CEO | Business Growth Consultant | Transforming Mid-Sized Companies Through Operational Efficiency & Market Expansion Strategies, on May 5, 2025