Determining Your Tax Residency in Greece: When Do You Qualify?

Table of Contents

1. Introduction to Greek Tax Residency
2. Criteria for Determining Tax Residency in Greece
3. The 183-Day Rule
4. Center of Vital Interests Test
5. Habitual Residence Test
6. Special Tax Regimes for Foreign Residents
7. Double Taxation Agreements
8. Tax Obligations for Greek Tax Residents
9. Non-Resident Tax Obligations in Greece
10. Consequences of Becoming a Greek Tax Resident
11. Steps to Establish Tax Residency in Greece
12. Common Misconceptions About Greek Tax Residency
13. Conclusion
14. FAQs

1. Introduction to Greek Tax Residency

Understanding tax residency in Greece is crucial for individuals who spend significant time in the country, own property, or conduct business within its borders. Whether you’re an expatriate, a digital nomad, or someone considering relocating to Greece, determining your tax residency status is essential for complying with Greek tax laws and fulfilling your financial obligations.

In this comprehensive guide, we’ll explore the intricacies of Greek tax residency, including the criteria used to determine your status, the implications of becoming a tax resident, and the steps you need to take to establish or change your tax residency in Greece.

2. Criteria for Determining Tax Residency in Greece

The Greek tax authorities use several criteria to determine an individual’s tax residency status. These criteria are designed to assess the extent of a person’s connection to Greece and their presence in the country. The main factors considered include:

• The number of days spent in Greece during a calendar year
• The location of an individual’s permanent home or habitual abode
• The center of vital interests, including personal and economic ties
• Nationality (in some cases)

Let’s delve deeper into each of these criteria to understand how they affect your tax residency status in Greece.

3. The 183-Day Rule

The 183-day rule is one of the primary methods used by Greek tax authorities to determine tax residency. According to this rule, if you spend more than 183 days (six months) in Greece during a calendar year, you are generally considered a tax resident of Greece for that year.

It’s important to note that these 183 days don’t have to be consecutive. The tax authorities count the total number of days you’re present in Greece, including partial days. This means that even if you enter the country at 11:59 PM, that day is counted as a full day of presence.

However, meeting the 183-day threshold doesn’t automatically make you a tax resident. Other factors, such as your center of vital interests, are also taken into consideration.

4. Center of Vital Interests Test

The center of vital interests test is another crucial factor in determining tax residency in Greece. This test looks at where an individual’s personal and economic ties are strongest. Factors considered in this assessment include:

• Location of family members (spouse, children)
• Place of primary residence
• Location of personal property and assets
• Where the individual conducts their primary business activities
• Location of bank accounts and investments
• Social and cultural ties to Greece

If your center of vital interests is determined to be in Greece, you may be considered a tax resident even if you don’t meet the 183-day threshold.

5. Habitual Residence Test

The habitual residence test is another method used to determine tax residency in Greece. This test considers whether an individual has a pattern of regular and extended stays in Greece, even if they don’t meet the 183-day rule in a single calendar year.

For example, if you consistently spend several months each year in Greece over multiple years, the tax authorities may consider you a habitual resident and, therefore, a tax resident of Greece.

Factors Considered in the Habitual Residence Test

When applying the habitual residence test, Greek tax authorities may look at:

• The frequency and duration of visits to Greece
• The purpose of these visits (e.g., work, leisure, family obligations)
• Maintenance of a permanent home in Greece
• Connections to the local community
• Participation in Greek social and cultural activities

6. Special Tax Regimes for Foreign Residents

Greece has introduced special tax regimes to attract foreign investors, high-net-worth individuals, and retirees. These regimes can affect your tax residency status and obligations:

Non-Dom Tax Regime

The Non-Dom tax regime allows eligible individuals to become tax residents of Greece while paying a flat tax on their foreign-source income. To qualify, you must:

• Invest at least €500,000 in Greek real estate, businesses, or securities
• Not have been a Greek tax resident for at least 7 out of the 8 years prior to the transfer of tax residence to Greece

Retirement Visa Program

The Greek Retirement Visa Program offers a flat tax rate of 7% on foreign-source pension income for eligible retirees who become tax residents in Greece. To qualify, retirees must:

• Be over 60 years old
• Receive a pension from abroad
• Come from a country with which Greece has a valid double taxation agreement

7. Double Taxation Agreements

Greece has signed double taxation agreements (DTAs) with numerous countries to prevent individuals from being taxed twice on the same income. These agreements can affect your tax residency status and tax obligations in Greece.

If you’re a resident of a country that has a DTA with Greece, the agreement’s “tie-breaker” rules may be used to determine your tax residency status if you meet the residency criteria in both countries.

It’s crucial to consult the specific DTA between Greece and your home country to understand how it may impact your tax situation.

8. Tax Obligations for Greek Tax Residents

Once you’re considered a tax resident of Greece, you’re generally subject to taxation on your worldwide income. This means you must report and pay taxes on income from all sources, both within Greece and abroad. Key tax obligations for Greek tax residents include:

• Filing an annual tax return (usually due by June 30th of the following year)
• Paying income tax on worldwide income at progressive rates (ranging from 9% to 44%)
• Reporting foreign assets and bank accounts
• Paying social security contributions (if applicable)
• Complying with wealth tax obligations (for high-value properties)

It’s important to note that Greece has a complex tax system, and seeking professional advice is recommended to ensure full compliance with all tax obligations.

9. Non-Resident Tax Obligations in Greece

If you don’t qualify as a tax resident in Greece, you may still have tax obligations in the country if you derive income from Greek sources. Non-residents are generally only taxed on their Greek-source income, which may include:

• Income from employment in Greece
• Rental income from Greek properties
• Capital gains from the sale of Greek real estate
• Dividends from Greek companies
• Interest from Greek bank accounts or bonds

Non-residents may be subject to different tax rates and may have limited access to tax deductions and credits compared to Greek tax residents.

10. Consequences of Becoming a Greek Tax Resident

Becoming a tax resident in Greece can have significant financial implications. Some of the key consequences include:

• Obligation to report worldwide income to Greek tax authorities
• Potential double taxation issues (mitigated by DTAs and foreign tax credits)
• Access to Greek social security and healthcare systems
• Eligibility for certain tax deductions and credits available to residents
• Potential exit tax when ceasing Greek tax residency

It’s crucial to carefully consider these consequences and seek professional advice before making decisions that could affect your tax residency status.

11. Steps to Establish Tax Residency in Greece

If you’re looking to establish tax residency in Greece, follow these steps:

1. Obtain a Greek tax identification number (AFM) from the local tax office
2. Register your address with the municipality where you reside
3. Open a Greek bank account
4. Maintain records of your presence in Greece (travel documents, utility bills, etc.)
5. File a tax return in Greece declaring your worldwide income
6. If applicable, apply for special tax regimes like the Non-Dom program
7. Notify your previous country of residence about your change in tax status

Remember that the process can be complex, and it’s advisable to consult with a Greek tax professional to ensure you’re following all necessary procedures.

12. Common Misconceptions About Greek Tax Residency

There are several misconceptions about Greek tax residency that can lead to confusion and potential non-compliance. Some common myths include:

• Believing that owning property in Greece automatically makes you a tax resident
• Assuming that staying just under 183 days in Greece guarantees non-resident status
• Thinking that having a foreign passport exempts you from Greek tax residency rules
• Believing that income earned outside of Greece is not taxable for Greek residents
• Assuming that retirement income is always tax-free in Greece

It’s crucial to understand that tax residency is determined by a combination of factors, and individual circumstances can greatly affect one’s status.

13. Conclusion

Determining your tax residency status in Greece is a complex process that requires careful consideration of various factors, including the duration of your stay, your center of vital interests, and your overall connection to the country. Whether you qualify as a Greek tax resident can have significant implications for your financial obligations and rights within the country.

As Greece continues to attract expatriates, digital nomads, and retirees with its beautiful landscapes and rich culture, understanding the nuances of tax residency becomes increasingly important. The introduction of special tax regimes for foreign residents has added another layer of complexity to the tax landscape, offering potential benefits but also requiring careful navigation of the rules.

Given the complexities of Greek tax law and the potential consequences of misunderstanding your tax residency status, it’s highly recommended to seek professional advice from a qualified Greek tax expert or international tax specialist. They can help you assess your specific situation, understand your obligations, and make informed decisions about your tax residency in Greece.

Remember that tax laws and regulations can change, so it’s important to stay informed about any updates that may affect your status. By understanding the criteria for tax residency in Greece and fulfilling your obligations, you can enjoy your time in this beautiful Mediterranean country with peace of mind and financial clarity.

14. FAQs

Q1: Can I be a tax resident in both Greece and another country?

A1: While it’s possible to meet the tax residency criteria of multiple countries, most countries have tie-breaker rules in their double taxation agreements to determine a single country of tax residency. If you find yourself in this situation, it’s crucial to consult with tax professionals in both countries to determine your status and obligations.

Q2: How does remote work affect my tax residency status in Greece?

A2: If you’re working remotely from Greece for an extended period, you may be at risk of establishing tax residency, especially if you meet the 183-day threshold or develop strong personal and economic ties to Greece. It’s important to track your days in the country and consider the potential tax implications of long-term remote work arrangements.

Q3: Are there any exceptions to the 183-day rule for determining tax residency in Greece?

A3: While the 183-day rule is a key factor, it’s not the only consideration. Greek tax authorities also look at your center of vital interests and habitual residence. In some cases, you might be considered a tax resident even if you spend less than 183 days in Greece, particularly if you have strong personal and economic ties to the country.

Q4: How does owning property in Greece affect my tax residency status?

A4: Owning property in Greece doesn’t automatically make you a tax resident. However, it can be a factor in determining your center of vital interests, especially if it’s your primary residence. Additionally, as a property owner, you may have tax obligations in Greece regardless of your residency status, such as property taxes and potential rental income taxes.

Q5: Can I lose my tax residency status in Greece if I leave the country for an extended period?

A5: Yes, if you leave Greece for an extended period and establish stronger ties with another country, you may lose your Greek tax residency status. However, this depends on various factors, including the duration of your absence, your intentions to return, and whether you maintain significant personal and economic ties to Greece. It’s advisable to consult with a tax professional if you’re planning an extended absence from Greece to understand the potential impact on your tax status.

Article reviewed by Georgi Ivanov, Corporate Lease Negotiator | Industrial Real Estate Strategist, on March 1, 2025