What is a Non-Dom Tax Regime?

A "non-dom" (non-domiciled) tax regime is a special tax status offered by some countries to attract wealthy foreigners. It typically allows new residents to pay reduced taxes on foreign income for a set period.

Greece's non-dom regime, introduced in 2020, is specifically designed for foreign pensioners and offers one of Europe's most attractive deals: a flat 7% tax on all foreign pension income for 15 years.

How Greece's Non-Dom Regime Works

The Basic Deal

- You become a Greek tax resident - You apply for the non-dom regime - You pay 7% flat tax on foreign pension income (instead of progressive rates up to 44%) - This status lasts 15 years - You can still deduct certain expenses

What Counts as "Foreign Pension Income"?

- State pensions from foreign governments - Private pension plans and annuities - Occupational/company pensions - Foreign social security payments

What Does NOT Qualify?

- Greek-source pension income - Employment income - Rental income - Investment income (dividends, interest, capital gains) - Business income

Real Savings Examples

Example 1: UK State Pensioner

- Annual pension: £20,000 (€23,500) - UK tax: £2,500 (€2,940) — 12.5% effective rate - Greek 7% tax: €1,645 - Annual savings: €1,295 - 15-year savings: €19,425

Example 2: German Retiree

- Annual pension: €40,000 - German tax: €8,400 — 21% effective rate - Greek 7% tax: €2,800 - Annual savings: €5,600 - 15-year savings: €84,000

Example 3: High Pension + Private Income

- Foreign pension: €60,000 - Other foreign income: €20,000 (taxed normally) - Normal Greek tax on pension: €18,000 (30% effective) - Greek 7% tax: €4,200 - Annual savings: €13,800 - 15-year savings: €207,000

Eligibility Requirements

Must Meet ALL of These:

1. Not been Greek tax resident for 5 of the last 6 years

- This is the key requirement - Even one year of Greek tax residency in the last 6 disqualifies you

2. Transfer tax residency from a treaty country

- Greece has treaties with virtually all developed countries - Includes all EU countries, UK, US, Canada, Australia, etc.

3. Be a foreign national OR Greek national returning from abroad

- Both categories qualify - Greek nationals must have lived abroad for sufficient time

4. Declare intention to stay 183+ days in Greece

- You must actually become Greek tax resident - This means spending 183+ days per year in Greece - Or having your permanent home/vital interests in Greece

NOT Required:

- Minimum income level - Property investment - Job creation - Language skills - Greek ancestry

The Application Process

Step 1: Become Greek Tax Resident

Before applying for the regime, you must: - Establish Greek tax residency (183+ days or permanent home) - Obtain your AFM (Tax ID) - Register with Greek tax authorities

Timeline: 2-4 weeks after arrival

Step 2: Prepare Application

Required documents: - Application form (provided by tax office) - Copy of passport - AFM certificate - Proof of foreign pension income - Certificate of tax residency from previous country - Declaration of intent to remain in Greece

Step 3: Submit Application

- Submit to Greek Tax Office (AADE) by March 31 - Of the tax year FOLLOWING your residency transfer - Example: If you became resident in July 2025, apply by March 31, 2026

Step 4: Annual Compliance

Each year you must: - File a Greek tax return (E1 form) - Declare all foreign pension income - Pay 7% tax on that income - Maintain Greek tax residency

Tax Filing Under the Regime

What You Declare

- All worldwide income (Greek and foreign) - Foreign pension income (taxed at 7%) - Other income (taxed at normal rates)

What You Pay

- 7% on foreign pension income - Normal progressive rates on Greek income - Normal rates on other foreign income (rental, investments, etc.)

Example Tax Return

Income SourceAmountTax RateTax Due

UK pension€30,0007%€2,100 Greek rental€10,00015%€1,500 Dividends€5,0005%€250 Total€45,000€3,850

Common Questions

"Can I apply after I've been resident for a year?"

Yes, but you must apply by March 31 of the year following your first year of residency. Don't delay.

"What if I leave Greece before 15 years?"

You lose the regime if you cease being Greek tax resident. There's no penalty — you simply revert to normal tax rules.

"Can my spouse also get the regime?"

If your spouse has their own foreign pension income and meets the criteria, they can apply separately.

"Does the 7% apply to lump sum pension withdrawals?"

Generally yes, if the lump sum is from a foreign pension scheme. But consult a tax advisor for your specific case.

"What about inheritance tax?"

The 7% regime only covers income tax. Inheritance tax in Greece is separate and applies to Greek assets.

Comparison with Other Countries

CountryRegimeRateDurationMin. Stay

GreeceNon-dom7%15 years183 days PortugalNHR10-20%10 years183 days CyprusNon-dom0% on dividends17 years60 days MaltaNon-dom0% on remittedIndefinite183 days ItalyFlat tax€100k flat15 years183 days UKNon-domVariousIndefinite183 days

Greece offers the best combination of low rate, long duration, and reasonable stay requirement for pensioners.

Expert Tips

1. Apply in your first year — The 15-year clock starts from your first application year. Delaying wastes years.

2. Document your days — Keep records of time spent in Greece (flight tickets, accommodation receipts) in case of audit.

3. Get professional help — Greek tax forms are in Greek. Mistakes can cost you the regime.

4. Plan for year 16 — After 15 years, you'll pay normal tax. Consider restructuring finances before then.

5. Don't forget other income — The 7% only covers pensions. Other income is taxed normally.

How We Help

Our 7% tax regime service includes: - Eligibility verification - Tax residency transfer - Application preparation and submission - Annual tax filing - Compliance monitoring - Year-16 transition planning

Book a free consultation to discuss your specific situation.

Greece Non-Dom Tax Regime: 7% Pension Tax Explained