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Greece’s latest tax reform benefiting foreign pensioners

By 17/11/2020 No Comments

In July of 2020, the Greek government passed a Law introducing a new flat tax regime, as far as foreign pensioners are involved. Law 4714/2020 (Gov. Gazette A148/31.07.2020) amending Law 4172/2013.

Said law concerns the new tax provisions, after the implementation of EU Directive 2017/1852, Dir. 2018/822, Dir. 2020/876, Dir. 2016/1164, Dir. 2018/1910 and Dir. 2019/475, in order to enhance financial growth and combat the dire financial consequences of the COVID-19. In the meantime, in September of 2020, they published the Ministerial Order No. A1217/2020 (Gov. Gazz. 4215/29.09.2020), providing for additional guidelines.

According to the above-mentioned legal framework, foreign pensioners having transferred their tax residence in Greece are, from now on, subject to a single annual tax of 7% upon their global income.

This means that as soon as the third country citizen is a pensioner, they can apply for the Greek alternative Non-Dom regime. The fact that they may have further income deriving from other sources does not affect their right to apply for the above regime as a pensioner.

Alternative Non – Dom tax regime for pensioners, foreign citizens, who transfer their tax residence in Greece

The new Article 5B of the Law 4172/2013 stipulates that a pensioner is subject to an alternative tax regime for the income earned abroad, as long as they fulfill the following cumulative conditions:

1.    Their income deriving from the pension is earned abroad.

2.    They transfer their tax residence in Greece.

3.    They weren’t a tax resident of Greece for the past 5 out of 6 years prior to the transfer of their tax residence in Greece.

4.    The state from which they transfer their tax residence has acceded to a treaty for administrative co-operation in the field of taxation with Greece.

5.    For the acknowledgment of the capacity as a pensioner, the taxed person shall present any document issued by the Social Security Organization or any other social security institution or professional association or insurance company proving the payment of pension abroad by a main or auxiliary social insurance institution, professional associations etc.

Application Deadline

The application for the transfer of the tax residence in Greece needs to be submitted by the 31st of March of the respective fiscal year. During the same deadline, it is possible for the natural persons who have already transferred their tax residence in the previous year to also file the relevant application.

Application Procedure

Within 60 days since the submission of the application, the Tax Administration is reviewing the application and issuing a decision, either approving or rejecting the petition. The pensioner shall declare to their application the country in which they had their last tax residency until the filing of the application. The Greek Tax Authority will notify the Tax Authorities of said country for the transfer of the Tax Residency.

Approval of the application

If the relevant application is approved, the pensioner’s income shall be subject to a 7% tax rate upon the total global income earned abroad, paid annually. Said tax needs to be paid in one installment until the last working day of the fiscal year, i.e. the last working day of the month of July, and cannot be netted with other fiscal obligations or any credit balances of the tax person who has entered the alternative Non – Dom tax regime.

Upon the payment of the aforementioned tax, their tax obligation is exhausted.

This tax rate shall be valid for the 15 fiscal years following the approval, while this favorable regime starts from the year following the fiscal year for which the application was submitted.

Taxes paid in third countries

The tax of 7% is not imposed to incomes exempted from taxes at the country of residence pursuant to the provisions of Double Taxation Convention.

Any tax paid abroad for incomes covered by the alternative Greek Non-Dom tax regime will be deductible from the tax imposed in Greece, as long as:

a) the Double Taxation Convention (if any) stipulates the right of taxation for both

of the countries,


b) there is not a Double Taxation Agreement.


If the taxpayer fails to pay the entire amount of the tax for the year, they shall no longer be subject to the alternative regime and will be taxed, from that moment on, according to the provisions of the Fiscal Code.


The taxpayer retains the right to revoke their application at any fiscal year during the 15 years of the enforcement period. In case of revocation, the pensioner is subject to the regular provisions starting from the fiscal year when the application for revocation was submitted.

Content of the tax declaration according to the alternative regime

According to Art. 67 of the L. 4172/2013, all taxpayers above must declare all of their incomes, whether they are exempted or not, electronically. Under special circumstances, taxpayers are allowed to submit the declaration in paper form to the Tax Administration. Specifically for the pensioners subject to the alternative tax regime, they are obliged to declare all income arising in Greece and all income arising abroad that is subject to the alternative tax system.

Amoiridis Law Services ®, having successfully represented numerous international clients, coming from more than 60 countries, can assist you during the entire transfer of your tax residence and the application process in order to benefit from the latest flat tax regime.

Our experience, built through the years, allows us to offer our almost exclusively international clientele a full package of services, comprising of everything from property law to investments. In cooperation with our network of external associates, involving both in-house and external solicitors, notaries, accountants, tax experts, civil engineers, topographers, realtors etc., we can provide you with an all-in-one package of services concerning all aspects of the procedure.

For any further information and clarifications please do not hesitate to contact our qualified legal team, ready to provide you with further personalised information tailored to your needs and your profile.

You can email us:  or call/text us directly at: +306908351705

Athens, November 2020

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