Am I Eligible for the 50% Tax Break in Greece?

Since the start of 2021, a new tax regime presented by the Greek Law 4758/4.12.2020, was introduced by the Greek government to attract global executives, employees, business owners and angel investors who want to relocate to Greece. Depending on their eligibility, this special tax regime means that foreign individuals would benefit from a 50% income tax break on their annual Greek salary or business income over a period of seven consecutive years following their relocation.

Am I Eligible For the 50% Tax Break?

Expats transferring their tax residency to Greece can benefit from a 50% tax reduction with regards to their income from salaried employment, as well as from business activity carried out in Greece.

This favorable taxation plan is only applicable if the individual:

• Was not a Greek tax resident for the previous five of the six years prior to the transfer of one's tax residence to Greece.
• Transfers one's tax residence from an EU member state or EEA country or from a country with an active taxation agreement established with Greece.
• Will be working in Greece under an employment contract with a Greek company, subsidiary, or branch), OR start a business activity (sole proprietorship) in Greece.
• Must fill a new job position or establish their own activity.
• Declares that they intend to stay in Greece for at least two years.

Benefits of the 50% Tax Regime for Greece

For an individual who successfully applies for the special tax regime in Greece, they:

• Become a Greek tax resident under this special tax regime;
• Become exempt from paying income tax and solidarity tax on 50% of their Greek employment income or freelancer income;
• Are taxed in Greece for any other Greek or foreign income according to the general tax rates (with a right to receive a foreign tax credit for taxes paid abroad on certain conditions etc.); and
• Become exempt from the application of local tax rules on annual imputed income deriving from ownership or possession of a residence or a private use vehicle.

Note: "Imputed income" refers to income that is not actually received in cash but is assigned a monetary value for the purpose of taxation or accounting. This includes:

• Employee Benefits: Non-monetary compensation such as company cars, housing allowances, or meals provided by an employer.
• Owner-Occupied Housing: Homeowners may impute rental income from their own property, which is then included in their taxable income.
• Government Services: Services provided by the government that have a monetary value but are not paid for directly by the recipient (e.g., subsidized healthcare or education).

How Long Does the Tax Exemption Last?

This tax exemption expires after a total of seven tax years, with no possibility of further extension. However, if you stop working or running your business in Greece for over 12 months, the benefit ends.

Tax Incentives for Angel Investors

Individuals can deduct 50% of their capital contributions to registered start-ups from their taxable income for that year.

This applies to bank deposits up to EUR 300,000 annually, spread across up to three start-ups, with a maximum of EUR 100,000 per start-up. If an audit reveals the contribution was made solely for tax benefits, a fine equal to the tax benefit will be imposed.

In summary, benefits under this tax program include:

• 50% Tax Savings – pay tax on only half your Greek income.
• More Cashflow – keep more of your earnings while living in Greece.
• Relocation Appeal – combine tax relief with the Mediterranean lifestyle.
• Secure Framework – benefit from a program backed by Greek law, valid for 7 years.

How We Help You Apply

Our process makes applying simple:

1. Eligibility Check – we assess whether you meet all requirements.
2. Documentation – we guide you in gathering proof of residency, work contract, or business activity.
3. Application Submission – we handle the filing with the competent Tax Authority (IAPR).
4. Ongoing Support – we coordinate with our network of accountants and lawyers to ensure compliance and smooth yearly renewals.

FAQs — Frequently Asked Questions

Can remote workers use this incentive?

‍Yes — if you are employed by a Greek company or operate as a registered freelancer/self-employed in Greece. Fully remote employees working only for foreign entities usually do not qualify unless they establish a Greek-registered activity.

Does this apply to both employees and freelancers?

‍Absolutely. You can qualify through an employment contract or by registering as a sole proprietor in Greece.

Do I need to stay in Greece full-time?

‍You must declare an intention to remain at least 2 years, but your actual time in-country may depend on your work or lifestyle, as long as residency rules are respected.

How long does the incentive last?

‍The 50% tax reduction is valid for 7 consecutive tax years.

What happens if I leave Greece or stop working?

‍If you stop working or running your Greek business for more than 12 months, the incentive ends and you return to standard taxation rules.

We provide tax consultations with a professional to help you apply for this special tax regime and see if you're eligible under this program. To find out more, book a 15-minute discovery call to learn more about our services.