Greece taxes your foreign pension at 7%. Flat. For up to 15 years.
Greece's Article 5B pensioner regime applies a single flat 7% rate to all your foreign-sourced income — Social Security, pensions, IRA distributions, dividends, rental income from abroad — instead of the standard rates that climb to 44%. Most US retirees who move to Greece qualify automatically.
The catch is procedural: you have to elect the regime with the Greek tax authority (AADE) by March 31 of the tax year you want it to apply, and pay the resulting tax by end of July each year. Miss the July payment once and the regime ends permanently. There's no reinstatement.
Updated · Published
This page covers the 7% flat tax regime in depth — the mechanics, eligibility, setup process, and 15-year planning horizon. If you're still deciding whether Greece is the right country for you, start with the Greece retirement guide, which covers the FIP visa, healthcare, and the full cost picture alongside the tax overview.
Four things that determine whether this regime works for you
The rate
7% flat on all foreign-sourced income — pensions, Social Security, IRA distributions, dividends, capital gains, and rental income from outside Greece. No deductions. No credits against this tax. Paid as a single annual lump sum by end of July.
Who qualifies
You can't have been a Greek tax resident in 5 of the previous 6 years, and you must be transferring your tax residency from a country with an administrative cooperation agreement with Greece. The US qualifies. Most US retirees moving to Greece for the first time qualify automatically.
The deadline that matters
Elect the regime by March 31 of the tax year you want it to apply. Pay the annual 7% tax by end of July each year. Missing the July payment ends the regime permanently — no extensions, no reinstatement.
How long it lasts
Up to 15 tax years per person. The clock starts in the year you first elect the regime. After 15 years, you fall into Greece's standard progressive rates — 9% to 44%. Spouses each have their own separate 15-year clock.
What makes this different from Italy's 7% regime
Italy has a similar 7% flat rate for foreign retirees — but it's restricted to specific southern regions (Sicily, Calabria, Sardinia, and a handful of others) and requires a population threshold (town under 20,000). Greece's regime applies anywhere in the country with no geographic or population restriction. Athens, Santorini, rural Crete — wherever you live, the same rate applies.
Who qualifies for the 7% regime
The eligibility rules are set out in Article 5B of Law 4172/2013 (as amended). Three conditions have to be met — a qualifying income source, the non-residency lookback, and the country-of-origin requirement.
You receive foreign pension income
The regime is designed for retirees with income from a foreign pension — which the Greek tax authority interprets to include US Social Security benefits and US-employer pensions. A 401(k) rolled into an IRA and drawn as regular distributions also qualifies. Roth IRA income alone is a grayer area — see the retirement accounts section below.
You weren't a Greek tax resident in 5 of the previous 6 years
For most US retirees moving to Greece for the first time, this is a non-issue — you haven't been a Greek tax resident in any of the previous 6 years. The 5-of-6 rule exists to prevent people from temporarily leaving Greece and re-electing the regime. If you've previously lived in Greece and paid Greek taxes, confirm your lookback period with a local accountant before assuming you qualify.
You're transferring tax residency from a qualifying country
Greece requires that you're moving your tax residency from a country with an administrative cooperation agreement for tax purposes with Greece. The US qualifies. In practice, this means you were filing US tax returns and are now establishing Greek tax residency for the first time. You'll need documentation of your US tax residency — typically a recent US tax return — when you file the election.
One regime, not two — the €100,000 cap doesn't apply here
Greece has two special tax regimes for foreign residents. Article 5A is the high-net-worth investor regime — it requires a €500,000 investment in Greece and costs €100,000/year regardless of income. Article 5B is the pensioner regime covered here. There's no €100,000 annual cap on the pensioner regime — you pay 7% on whatever your actual foreign income is. The €100,000 figure only appears in news coverage of the investor regime.
Every type of foreign income — not just pensions
The 7% rate applies to all foreign-sourced income once the regime is established — not just the pension income that made you eligible. That scope is one of the reasons the regime is attractive to US retirees with multiple income streams.
US Social Security
Qualifies as the primary income source and is taxed at 7%. The US-Greece totalization agreement (in force since 1994) prevents double Social Security taxation.
US pension & 401(k) distributions
Covered at 7%. The 401(k) is the cleanest qualifying income source — employment-linked pension contributions are exactly what Article 5B targets.
Traditional IRA distributions
Covered at 7% once the regime is established, particularly when the IRA was originally funded from a 401(k) rollover. Keep documentation showing the employment-contribution origin.
Dividends & capital gains
All foreign-source investment income — dividends, realized capital gains on US brokerage accounts — falls under the 7% flat rate once the regime is in place.
Foreign rental income
Rental income from a US property (or a property in any country other than Greece) is foreign-sourced and taxed at 7%. Rental income from Greek property falls under standard rates.
Roth IRA distributions
Once the regime is established on other qualifying income (SS or 401k), Roth distributions are covered at 7% as foreign-source income. See the Roth section for the eligibility nuance.
What's NOT covered at 7%
- Greek-source income — rental income from Greek property, employment income from a Greek employer, or income from a Greek business falls under standard progressive rates.
- No deductions — you can't deduct expenses, contributions, or losses against the 7% flat tax. What you earn abroad is what you pay 7% on, full stop.
- No credits against the Greek tax — you can't apply foreign tax credits to reduce the 7% Greek tax itself. The 7% paid to Greece may, however, be creditable against your US federal income tax via Form 1116 — see the US tax section below.
What the 7% regime actually costs
Three scenarios illustrating the flat regime vs. standard Greek rates. All figures are illustrative — exchange rates and individual circumstances vary.
Scenario 1 — Social Security only
$2,000/month SSStandard rates on €22,000: 9%×€10k + 22%×€10k + 28%×€2k = €900 + €2,200 + €560 = €3,660.
Scenario 2 — Social Security + pension
$2,000 SS + $1,500 pension/monthStandard rates on €38,500: 9%×€10k + 22%×€10k + 28%×€10k + 36%×€8,500 = €900 + €2,200 + €2,800 + €3,060 = €8,960.
Scenario 3 — SS + IRA + investment income
$2k SS + $2k IRA + $500 divs/monthStandard rates on €49,500: 9%×€10k + 22%×€10k + 28%×€10k + 36%×€10k + 44%×€9,500 = €900 + €2,200 + €2,800 + €3,600 + €4,180 = €13,680.
These scenarios are illustrative only. Tax treatment depends on your full income picture, Greek residency status, correct election of the 7% regime, and applicable US-Greece treaty provisions. EUR/USD exchange rates shift — recalculate using current rates. US federal income tax may apply separately depending on your income level. These figures do not constitute tax advice.
How to elect the regime — and the deadlines that matter
The regime doesn't apply automatically. You file an election with AADE (the Greek tax authority) and pay the resulting tax by end of July each year. The process is straightforward — but the deadlines are strict, and missing them has permanent consequences.
Get your AFM (Greek tax ID)
Before anything else · Day 1–7 in Greece
Your AFM (Αριθμός Φορολογικού Μητρώου) is Greece's tax identification number. Without it you can't file anything with AADE. Apply at your local DOY (the regional tax office) — same-day, free, with passport and proof of address. Some retirees hire a Greek accountant to handle this before arrival. → AADE website
Engage a Greek tax advisor
In your first months · Before March 31
The election is a formal filing with AADE, not a self-service online form. A Greek accountant (λογιστής) or a tax law firm with international clients handles this routinely. You'll need to provide documentation of your prior US tax residency (a recent US tax return) and evidence of qualifying foreign pension income. Get a local professional involved before the March 31 deadline of the year you want the regime to apply.
File the election by March 31
Annual deadline · AADE filing
The election must be filed with AADE by March 31 of the tax year you want it to apply to. If you arrive in October 2026 and want the regime to cover 2026, you'd need to have filed by March 31, 2026 — before arrival. In practice, most retirees elect starting with their first full calendar year in Greece. Confirm the timing with your Greek accountant based on your exact arrival date.
Pay by end of July — every year, without exception
Annual payment deadline · July 31
Once the regime is active, you calculate 7% of your total foreign-sourced income for the prior year and pay it by end of July. This is a single annual lump sum — not quarterly installments. Miss it once and the regime ends permanently. There's no grace period, no extension, and no reinstatement. Set a recurring calendar reminder. Many retirees transfer the funds to their Greek account in January so the money is sitting ready well before summer. The payment goes through your AADE online account (myAADE).
If you arrive mid-year
Greece determines tax residency by the 183-day rule — you're a Greek tax resident for a calendar year if you're physically present for more than 183 days that year. Arriving in September means you probably won't be a Greek tax resident in the year of arrival. The first year the regime typically applies is the first full calendar year you're in Greece. Your Greek accountant will confirm the right election year based on your specific entry date.
Traditional IRA, 401(k), and the Roth question
The US-Greece tax treaty was signed in 1950 — long before the Roth IRA existed (1997) or modern retirement accounts took shape. That gap creates some ambiguity for Roth holders, but the picture for the 7% regime is generally favorable.
Traditional IRA / 401(k) — clean treatment
Under the 7% regime, Traditional IRA and 401(k) distributions are covered at 7% as foreign-source pension income. The 401(k) is the cleanest qualifier — it's directly tied to past employment contributions, which is exactly what Article 5B targets. A Traditional IRA originally funded from a 401(k) rollover also qualifies cleanly; keep documentation showing the 401(k) origin. RMDs are treated the same as voluntary distributions.
Without the regime (standard rates): taxable at 9%–44%. The US Foreign Tax Credit (Form 1116) may then offset some or all of your US federal tax owed on the same income.
Roth IRA / Roth 401(k) — Greece doesn't recognize the tax-free status
Greece doesn't have an equivalent of the Roth IRA and doesn't honor its tax-free treatment at distribution. Roth distributions are taxed as foreign-source income — either at 7% under the regime or at standard progressive rates if you're not enrolled.
There's one eligibility nuance worth knowing: a standalone Roth IRA may not on its own qualify you for the 7% regime. The Greek tax authority wants to see foreign pension income tied to past employment contributions. US Social Security or a 401(k) rollover are the cleanest qualifiers. If your only retirement income is a Roth, confirm with a Greek tax advisor that you can still elect the regime.
Once the regime is established on qualifying income, all foreign-source income — including Roth distributions — falls under the 7% rate automatically.
The planning lever: convert before you become a Greek tax resident
Pre-residency Roth conversions — completed in the calendar year before you establish Greek tax residency — are taxed under US law only. Those converted funds may not be subject to Greek tax at distribution, since the conversion happened before you were a Greek taxpayer. The window closes the day your 183-day clock starts. If you have a substantial Traditional IRA and are planning to move within the next 1–2 years, this is worth discussing with a cross-border CPA now.
You still file US taxes — here's how the two systems interact
Moving to Greece doesn't end your US tax filing obligation. The US taxes citizens on worldwide income regardless of residence. How the Greek 7% and your US return interact depends on what type of income you're drawing.
Social Security below the $25,000 threshold (single filer)
If Social Security is your only income and it's below $25,000/year ($32,000 married filing jointly), no US federal income tax is owed on it. The 7% Greek tax is the only tax you pay on that income. Form 1116 doesn't help here since there's no US tax to credit against — but you're also paying just 7% on income the US isn't taxing at all.
Pension and IRA income subject to both US and Greek tax
Here's the good news: you don't necessarily pay both. If your pension or IRA distributions trigger US federal income tax, you can claim the Foreign Tax Credit (Form 1116) to offset your US liability with the Greek tax paid. The credit can't exceed your US tax owed on the same income — so if you owe the US $500 but paid Greece $700 on that income, you credit $500 and carry forward the remaining $200.
In practice, your effective combined rate is often close to just your US rate — the 7% Greek tax gets largely absorbed.
FBAR and FATCA
If your Greek bank accounts exceed $10,000 at any point during the year, you must file an FBAR (FinCEN 114) by April 15 (automatic extension to October 15). FATCA (Form 8938) has higher thresholds but may also apply depending on total foreign asset levels. Your expat CPA handles these alongside your regular US return.
Don't use a domestic CPA for this
A domestic US CPA who doesn't specialize in expat returns often doesn't know which treaty provisions apply, may miss the FBAR, and may not know how to handle Form 1116 alongside the Greek pensioner regime. For a return involving Greek residency, the 7% election, and US foreign tax credits, you need someone who does this every day. See the CPA recommendation below.
The 15-year clock — and what comes after
The Article 5B regime has a maximum duration of 15 tax years per person. Year 1 is the first year you elect it. Year 15 is the last year the flat rate applies. After that, you're taxed under standard Greek progressive rates.
What the 15-year limit means in practice
If you elect the regime in 2027, it applies through 2041 — 15 years. From 2042 onward, your foreign income is taxed at standard progressive rates: 9% on the first €10,000, scaling to 44% above €40,000. The 15-year per-person cap was introduced as a clarification of the original statute.
Spouses have separate clocks
The 15-year limit is per individual, not per household. If you and your spouse move to Greece in the same year and both elect the regime, your clocks run in parallel and expire on the same schedule. If you move in different years, your clocks start separately.
What are the options after 15 years?
After 15 years, standard Greek progressive rates apply to your foreign income. The planning options depend on your situation at that point:
- Stay and pay standard rates — if your foreign income is modest and Greece's cost of living is still favorable, the math may still work even at higher rates.
- Relocate to another country — if favorable tax treatment remains a priority, you'd evaluate other regimes at that point. Malta, Portugal, and Cyprus each have structures worth reviewing.
- Use the Foreign Tax Credit more aggressively — under standard rates, the Greek tax paid may be creditable against a larger portion of your US tax liability.
Honestly, if you elect at 65 your window runs to 80. The regime is valuable now; planning for its expiration is a year-12 or year-13 problem, not a year-1 problem.
What if Greece changes or eliminates the regime before 15 years?
The regime is established by statute (Law 4172/2013, Article 5B). Greece has amended it over the years — the 15-year per-person cap was introduced as a clarification, and the regime has been stable since its introduction in 2020. No statutory tax benefit is guaranteed forever, but a future change would typically grandfather existing participants for their remaining years — that's been the pattern with similar European regimes, though it's not guaranteed.
Ask your Greek tax advisor about current status each year when you file.
How to move this forward
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Confirm eligibility with a cross-border CPA
Before moving to Greece, run your specific income sources past an expat tax specialist who handles both US and Greek returns. Eligibility for Article 5B is usually straightforward for US retirees, but the documentation requirements and election mechanics are worth getting right before you're in-country. First consult at TFX is free.
Book a free consult with TFX → (opens in new tab) -
Get your AFM in your first week in Greece
The AFM (Greek tax ID) is the prerequisite for every other step — banking, residence permit registration, and the 7% regime election. Get it at your local DOY on day one or two.
Greece FIP visa guide → -
Hire a Greek accountant before March 31
The election must be filed with AADE by March 31 of the tax year you want the regime to apply. A Greek accountant (λογιστής) handles the AADE filing, documentation, and the annual July payment each year — find one in your first months in-country.
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Set a recurring July reminder for the annual payment
The 7% tax is due by end of July each year. Missing it ends the regime permanently. Put the funds aside in January so you're not scrambling mid-summer. The payment goes through your AADE online account (myAADE) using your AFM.
Sources
- Other Tax Credits and Incentives — PwC Tax Summaries: Article 5B, Law 4172/2013 — 7% flat tax regime eligibility, March 31 election deadline, end-of-July payment, and no-offset rule. Updated February 2026.
- Special Tax Regimes in Greece — KPMG Greece (2024): Comprehensive guide to Article 5B pensioner regime vs. Article 5A HNWI regime; confirms 15-year per-person cap, annual July payment deadline, and no-deduction rule.
- Greece Individual Income Tax — PwC Tax Summaries: Standard progressive tax rates (9%–44%).
- Pensioners' Regime (Article 5B) — Machas & Partners: Greek tax law firm; 401(k) and IRA eligibility nuance, documentation requirements, and practical enrollment guidance.
- Greece's 7% Flat Tax for Foreign Pensioners — Elxis: Scope of foreign income covered at 7%, including dividends, rentals, and capital gains.
- Greece Flat Tax Ultimate Guide 2026 — Global Citizen Solutions: 15-year duration cap; pensioner vs. investor regime distinction; confirms €100k cap applies only to the investor (Article 5A) regime.
- 7% Pensioner Regime — Nestia: Annual payment mechanics and foreign-source income scope.
- Totalization Agreement with Greece — SSA.gov: US-Greece totalization agreement in force since September 1994; no double Social Security taxation.
- Greece Tax Treaty Documents — IRS.gov: US-Greece income tax convention signed February 20, 1950.
- AADE — Independent Authority for Public Revenue: Primary authority for AFM registration and the 7% regime election (March 31 deadline) and annual payment (end of July).
Need someone who handles both US and Greek returns?
TFX specializes in expat returns — Form 1116 foreign tax credits, Article 5B regime documentation, FBAR filing, and treaty analysis. First consult is free. A typical retiree return runs about $535/year.
Get a free consult with TFX