Guide to Greece’s Tax System: Everything You Need to Know About Taxes

Greece operates a standard European tax framework, combining progressive income tax (up to 44%), rental income tax (up to 45%), and property-related charges, including ENFIA and a 3.09% transfer tax on real estate purchases. The system varies depending on tax residency status, with residents taxed on worldwide income and non-residents only on Greek-source income. At the same time, Greece offers targeted incentives for foreign investors, most notably the Non-Dom regime, which allows qualifying individuals to replace taxation on foreign income with a fixed annual payment of €100,000.

Below is a breakdown of the main taxes and rules that apply in Greece.

Key Takeaways

• Income tax: progressive, up to 44%, applied only to the portion within each bracket
• Rental income tax: 15%–45%, separate from employment income
• Property purchase tax: 3.09% (VAT on new properties currently suspended)
• Annual property tax (ENFIA): typically ~€2–€13 per sq. m, depending on asset characteristics
• Municipal tax (TAP): 0.025%–0.035% of property value
• Withholding tax: 5% (dividends), 15% (interest), 20% (royalties)
• Social contributions: ~35.16% total (employer + employee)
• Non-Dom regime: €100,000 flat tax on foreign income for qualifying individuals
• Golden Visa: residency through real estate investment from €250,000 (specific projects) or €400,000–€800,000 depending on location

Tax Structure and Residency in Greece

Below we have prepared an overview of the core taxes in Greece and the role of tax residency in determining the final tax burden.

Taxes in Greece

Taxes in Greece apply to regular income, rental income, property, inheritance and gift, etc.

Income Tax for Individuals

Income tax in Greece, as in most European countries, has a progressive scale. The higher the income, the higher the tax rate:

The increased rate does not apply to all income, but only to that part of it that falls within the appropriate range.

Tax on rental income is also applied on a progressive scale, depending on the amount of income:

• up to €12,000 — 15%
• from €12,000 to €35,000 – 35%
• over €35,000 – 45%

Property Taxes

VAT in Greece is 24%, but for new real estate it is frozen throughout the country until the end of 2026. The buyer only pays the tax on the transfer of ownership, which is only 3.09%.

In addition, Greek property owners pay the following taxes:

Single Tax on Real Estate Ownership (ENFIA). This is calculated based on several factors: location of the property, area, year of construction, use, etc., and usually ranges from €2-13 per sq. m.

Additionally, the tax may be increased:

• for individuals, if the value of the property exceeds €500,000
• for legal entities, if the value of the property exceeds €250,000

From 2026, a 50% ENFIA reduction is granted for primary residences located in settlements with a population of up to 1,700 inhabitants (outside Attica), provided the property value does not exceed €400,000. From 2027, this benefit is expected to increase to a full exemption (0%).

The reduction applies only to the main residence and does not extend to investment properties, holiday homes, or high-value assets. Additional discounts may apply for properties insured against natural disasters, as well as for taxpayers already eligible for income-based relief.

Municipal Property Tax (TAP): an annual charge of approximately 0.025% to 0.035% of the property value, typically included in utility bills.

Special property tax for legal entities: up to 15% of the cadastral value, applicable only in specific cases (such as non-transparent ownership structures), with exemptions available for standard investment structures.

Taxes on Movable Property

Cruise Tax (TEPAI) for owners of pleasure craft, including yachts and sailboats, is payable regardless of whether the owner is a resident of Greece or not. This applies to all vessels that plan to navigate the country or dock in Greece. It is calculated based on the length of the vessel:

• up to 7 m — €0
• 7-8 m – €16 per month
• 8-10 m — €25 per month
• 10-12 m — €33 per month
• more than 12 m – €8 per m of length per month

Transport tax varies depending on the category and engine size, and can range from €22 to €1,260 per year. This tax does not apply to electric vehicles registered in the EU before 2010.

Luxury tax is 10% for some products, including fur and leather clothing and footwear, as well as jewelry, and 20% for private aircraft and helicopters.

Other taxes in Greece

VAT. The basic VAT rate is one of the highest in the EU at 24%. However, preferential conditions are provided for certain types of activities:

• 13% – for essential goods, services of catering enterprises, tourism and hotel accommodation
• 6% – for medical products, printed materials, utilities, etc.

On select Greek islands (Lesbos, Leros, Kos, Samos and Chios) reduced VAT rates apply: 17%, 9% and 4% respectively.

Stamp duty charged for financial and legal transactions at a rate of 2.4%, and 3.6% for leased out non-residential premises.

Income tax for legal entities the rate is calculated at 24%, for credit institutions – 29%, and for agricultural cooperatives – 10%.

When selling shares of companies from EU countries, you do not have to pay tax if your shareholding is more than 10% and your ownership period is at least 2 years.

Inheritance and gift tax: The tax rate can range from 1% to 40%, and is calculated individually and depends on many factors, including the degree of kinship, and the conditions of gift or inheritance. Similar conditions apply to gifts, dowry and lottery winnings.

Tax at source of payment applies at the following rates:

• For dividends – 5%
• For interest – 15%
• For royalties – 20%
• For certain types of services (consulting, technical, etc.) – 20%.

Capital increase levy: 1%.

Social insurance makes up35.16% and is divided between the employer and the employee – 21.79% and 13.37% respectively.

Although Greek taxes may seem high, there are opportunities to optimise them in Greece. Firstly, there are tax deductions that allow you to reduce the amount of tax, for example, through charitable contributions or social security contributions. Secondly, the government offers benefits for foreign residents which are outlined below.

Tax benefits in Greece for foreign citizens

Greece has a preferential tax regime for Non-Dom residents that allows for tax optimisation and a lower burden.

The regime is available for 3 categories of foreigners:

• Wealthy foreigners and investors

To qualify for preferential conditions, you must not have been a tax resident of Greece for 7 of the last 8 years preceding the application and have made investments of at least €500,000 in real estate, financial investment products or Greek business. The investment must be made 3 years before you plan to change your tax jurisdiction.

All taxes on income earned abroad are replaced by a fixed annual payment of €100,000. If relatives of the main applicant plan to use this regime, then in addition to this rate, a charge of €20,000 per year will need to be paid for each additional family member in the application.

For high-income earners, the flat rate is often more advantageous than paying income tax at the top rate of 44%. In addition, there is no need to pay tax on gifts, inheritances, and assets abroad, and there is no need to declare your worldwide income in Greece. The preferential regime is valid for 15 years and cannot be extended – after the expiration of the term, you will pay taxes on the same basis as residents of the country.

• Business professionals with a company in Greece and employees

Professionals receive a 50% income tax exemption for 7 years when changing tax residency to Greek. Citizens of EU countries, EEA countries, and countries with which Greece has signed a tax cooperation agreement can take advantage of these conditions. Two more conditions of this benefit are: you must not have been a tax resident of Greece for 5 of the last 6 years, and you must confirm that you plan to live in Greece for at least the next 2 years.

• Pensioners

Those receiving a pension in another country and changing their tax residency to Greece, can pay only 7% on all worldwide income for 15 years – except for inheritance and gifts of assets. Pensioners also receive an exemption from paying solidarity contributions. The conditions are similar: you must not have been a tax resident of Greece for 5 of the previous 6 years.

How to Get Greek Golden Visa

To benefit from Greece’s tax regimes, including the Non-Dom programme, you need to obtain residency. The Greek Golden Visa offers a flexible way to do this, without the requirement to live in the country permanently. The most popular route is real estate investment.

From September 1, 2024, Greece is divided into 2 investment zones with different entry thresholds with properties valued from:

• €800,000 – in Athens, Thessaloniki, all of Attica, on the islands of Crete, Mykonos, Santorini and others, with a population of 3,100 people
• €400,000 – in all other regions of the country

Investors are allowed to purchase 1 property with an area of ​​120 m² or more.

There is an exception that allows you to take part in the program for a minimum cost of €250,000.

This is for real estate that:

• Has cultural and historical value and needs restoration
• Is converted from commercial to residential

It is possible to purchase any property, regardless of location and the size of the property.

In the second case, the developer buys a commercial building and is obliged to completely reconstruct it, taking into account all energy efficiency and safety requirements in force in Greece. As a result, the investor receives a renovated apartment in a new modern residential complex, which is no different from a new building.

Most of these properties are located in the Attica region and Athens, allowing investors to purchase a property in one of the most popular and sought-after areas of Greece while maintaining a minimum entry threshold of €250,000.

If you are interested in obtaining a Greek residence permit for investment, contact the specialists at Astons today – our experts will review your case and offer the best solution based on your preferences and budget.