New preferential tax conditions and an improved quality of life are offered to retirees from abroad who choose to relocate to Greece. According to Law 4714/2020 of the Greek state, which remains in force, foreign pensioners who transfer their tax residence to Greece can benefit from a flat annual tax rate of 7% on their foreign-source income for a period of up to 15 years.

Under these provisions, natural persons who receive a pension from abroad may choose to be subject to this alternative taxation regime, allowing them to pay a fixed 7% tax on all income originating outside Greece.

In order to qualify for this regime, the individual must cumulatively meet the following criteria:

a. They must not have been a tax resident of Greece for five (5) out of the six (6) years prior to transferring their tax residence to Greece.

b. They must transfer their tax residence from a country that has an agreement with Greece for administrative cooperation in tax matters, such as an agreement for the exchange of tax information.

If approved, the individual becomes subject to the 7% flat tax on foreign income, while income generated within Greece is taxed according to the standard Greek tax rules. The regime is valid for 15 years, provided the conditions continue to be met.