Pensioners who receive a pension from abroad can transfer their tax residence to Greece and pay a flat 7% tax on all of their foreign-source income (not only the pension) for up to 15 years. Income earned in Greece is taxed separately under the ordinary rules. The regime does not preclude the application of double tax treaties.
ELIGIBILITY CONDITIONS
1. You must receive a foreign pension from mandatory public insurance, a legally established occupational fund, or a group pension insurance policy.
2. You must not have been a Greek tax resident in at least 5 of the 6 years before the transfer of your tax residence.
3. You must transfer your tax residence from a country that has an administrative cooperation agreement with Greece on tax matters.
4. You cannot hold the Article 5B (pensioners) and Article 5A (investors) regimes at the same time.
APPLICATION PROCESS
– If you transfer your tax residence to Greece on or before 2 July, you may apply for that same year or for the following year. If you transfer after 2 July, you apply for the following year.
– The application must be submitted by 31 October of the tax year concerned. Missing supporting documents can be completed by 30 November.
– The tax authorities examine the application within 60 days and must respond before the end of December.
– The Greek authorities inform the tax authorities of the country where you were previously resident.
REQUIRED DOCUMENTS
– A document from the foreign pension fund or competent foreign authority proving that you receive a pension, with Apostille and translation.
– A certificate of tax residence from the country where you are currently tax resident, with Apostille and translation.
– Depending on the case, the authorities may ask for additional evidence, such as foreign tax returns or assessments.
CONSEQUENCES AND KEY POINTS
– Payment: if the application is accepted, the tax is paid once a year, in a single payment, by the last working day of December. There are no instalments. If you miss this deadline, the regime is revoked for that year and subsequent years, and you are taxed on worldwide income under the ordinary rules. The regime cannot be re-applied for.
– Foreign tax credit: foreign tax paid on the income can be credited only up to the Greek tax due on that income. Any excess is not refundable.
– Revocation: you may request revocation in any tax year, before 31 October of the year for which it applies. After revocation you return to the general rules and cannot re-apply.
– Scope: the regime applies only to the applicant, not to family members.
We would be happy to assess your specific situation and guide you through the process.
Please do not hesitate to contact us with any questions.
