Greece isn’t just a Mediterranean paradise — it’s also a tax-friendly destination for retirees.
Thanks to the 7% flat tax regime, foreign pensioners who move their tax residency to Greece can benefit from:
✅ A 7% flat tax on all foreign pension income
✅ A guaranteed 15-year duration
✅ No tax on foreign dividends, interest, or capital gains (if pension is the primary income)
In this article, we break down the regime, who qualifies, and how to apply with help from Borderless Lawyers.
🧑⚖️ What Is the 7% Flat Tax Regime?
Introduced by Greek Law 4714/2020, the 7% regime allows foreign retirees who transfer their tax residency to Greece to pay:
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Just 7% tax on all foreign-sourced income (pensions, dividends, interest, etc.)
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For 15 consecutive tax years
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With no wealth tax or inheritance tax on foreign assets during that time
This replaces the standard progressive tax rates (up to 44%) and avoids global taxation on regular terms.
👤 Who Qualifies for the 7% Pensioner Tax Regime?
You may be eligible if:
✅ You are a non-Greek tax resident before applying
✅ You receive pension income from abroad
✅ You transfer your tax residency to Greece
✅ You have a DTT (double taxation treaty) between Greece and your pension-paying country
✅ You haven’t been a Greek tax resident in at least 5 of the past 6 years
The pension may be:
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A public/state pension (e.g., social security)
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A private pension (insurance-based or employer-sponsored)
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A lump-sum pension withdrawal
💡 You do not need to prove a minimum pension amount — but proof of regular payments helps.
📅 How Long Does the Regime Last?
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The 7% flat tax is valid for 15 tax years
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It is not extendable beyond that period
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During this time, you must remain a Greek tax resident
📝 Step-by-Step: How to Apply for the 7% Regime
1. Obtain a Greek AFM (Tax Number)
Used to identify you in the Greek tax system.
2. Transfer your tax residency to Greece
Usually triggered by spending 183+ days in Greece and registering a local address.
3. Submit an application to AADE by March 31 of the year you wish to apply.
The application must include:
✅ Proof of pension income
✅ Proof of tax residence in another country
✅ DTT confirmation (if applicable)
🔐 Borderless Lawyers prepares and submits the application remotely via Power of Attorney.
📈 Example: British Retiree Moving to Greece
Susan, a 68-year-old retiree from the UK, receives:
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£18,000/year UK state pension
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£10,000/year private pension
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€4,000/year interest from UK savings
Total income: ~€38,000/year
Greek tax owed under the regime: 7% x €38,000 = €2,660/year
→ She pays no tax in the UK due to DTT, and just 7% in Greece, with no additional tax on interest or dividends.
⚖️ What Income Is Covered?
✅ Foreign pensions (state and private)
✅ Dividends, interest, and capital gains (foreign-sourced)
✅ Rental income from foreign property
✅ Foreign business income (case-by-case review)
❌ Greek-sourced income (rental, salary) is taxed normally
❌ Cryptocurrency gains may be taxed if considered Greek-sourced
💶 When and How to Pay
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7% is paid annually on all declared foreign income
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Due in one installment by end of July each year
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Filing is done via Taxisnet (Form E1 + foreign income forms)
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We handle full preparation, submission, and payment scheduling
❗ Common Mistakes to Avoid
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❌ Filing too late — applications must be submitted by March 31
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❌ Forgetting to switch tax residency
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❌ Declaring Greek income under the 7% regime (it doesn’t apply)
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❌ Failing to claim DTT benefits — may lead to double taxation
✅ We manage deadlines, eligibility review, and filings for you.
🧑💼 How Borderless Lawyers Helps
Our legal & tax support includes:
✅ AFM and tax residency registration
✅ Residency permit assistance (if needed)
✅ Pensioner regime application submission
✅ Coordination with your home country tax advisor
✅ Annual tax return & 7% declaration
✅ Full remote process using Power of Attorney
Whether you’re planning your move or already in Greece, we ensure you pay less and comply fully.
❓ FAQ – 7% Pension Tax in Greece
Q: Is this regime available to Americans or British citizens?
A: Yes — both the US and UK have DTTs with Greece. You must declare your income in Greece and can usually avoid tax at source.
Q: Can I still receive my pension abroad?
A: Yes — your pension doesn’t need to be paid to a Greek account.
Q: Do I need a residence permit?
A: Non-EU citizens typically need a residence permit. We assist with applications, including Digital Nomad or Financially Independent visas.
🇬🇷 Retire Smart. Retire Tax-Efficiently in Greece.
The 7% regime is one of Europe’s best-kept retirement secrets. It offers peace of mind, legal certainty, and massive tax savings for 15 years.
👉 Contact Borderless Lawyers to apply and start your retirement in Greece with expert tax and legal support.