How can expats tax efficiently retire in Greece?

One of the most common questions I get from affluent and high net worth expats is about options for a tax-friendly retirement.

Most or are looking for warm climates, high quality living, and a slower pace of life than they’re used to on the corporate treadmill.

Greece ticks a lot of the boxes.

7% Flat Tax on Pensions

For countries with a double tax treaty with Greece, like the UK, there is the opportunity to take advantage of the Foreign Pensioners Regime.

Provided you haven’t been resident in Greece for 5 out of the last 6 years before becoming a Greek tax resident, you’re able to pay a flat 7% tax on your foreign income, including pension income.

This can then be applied for and claimed for 15 years.

For British expats looking to take advantage of the double tax treaty, this could allow you to reduce your effective rate of income tax on your pension from 15% in the UK (at the Basic Rate of tax, including your tax-free lump sum) to 7% in Greece.

It’s important to make sure you claim UK relief from double taxation. There are some complexities involved, so it’s sensible to start this process sometime before you need the funds.

But the potential tax benefits don’t stop with pensions…

Tax Exemption of UCITS Investment Funds

For many expats settling down in Greece, if you have liquid wealth which can easily be restructured, things like pensions and rental properties are becoming less attractive compared to the alternatives.

Greece doesn’t tax capital gains, income or dividends from UCITS investment funds domiciled within the EU/EEA.

With most offshore mutual funds and ETFs domiciled in Ireland or Luxembourg, this allows investors to easily structure their wealth in a tax efficient manner.

If you’re used to a regular income stream from a salary, rental income or a pension, at first investing in financial markets can be confusing.

The ideal approach for expats, is understanding your investment time horizon and building an investment portfolio to match this.

Ensuring funds you need in the short-term aren’t at risk from volatility, and funds you need in the long-term won’t be eroded by inflation.

What about non UCITS Investment Funds?

Not all investment funds are UCITS compliant.

This is especially the case for non-EU ETFs and mutual funds, like those from the US, popular offshore destinations, and many funds from the UK.

So it’s important not to assume just because your portfolio is comprised of ETFs and mutual funds, that it will be tax efficient.

Investment trusts and REITs also generally don’t meet UCITS criteria. And individual stocks and bonds are still subject to taxation.

Type of Tax	EU/EEA UCITS Investment Funds	Other Investments
Interest	N/A	15%
Dividends	N/A	5%
Capital Gains	N/A	15%

What about retirement visa options?

The most straightforward option for expats looking to settle down in Greece is likely to be the Financially Independent Person (FIP) Visa.

To qualify for a Greek retirement visa, you have to meet the following requirements:

Sufficient independent income (at least €3,500/month or €84,000 in savings)
Proof of good health
Valid health insurance
Accommodation in Greece (rental or purchase)

You will receive a temporary residence permit—initially for one year, but it can be renewed continuously as long as you still meet the initial criteria.

After five years, you become eligible for a permanent residence permit, which lasts indefinitely.