What is the process for becoming a Tax Resident of Greece?

The method and implications of becoming a tax resident of Greece are some of the first things you will need to understand if you are considering moving to Greece. It will have implications for your daily life, and before you know it, after living in Greece for a week or two, you will be asking yourself, “How do I become a tax resident of Greece?”

Let us guide you through the steps to becoming a tax resident in Greece.

Why do you need to become a tax resident in Greece?

If you live in Greece for more than 183 days during any 12-month period, you are generally considered a tax resident, subject to applicable exceptions and tax treaty rules. Other factors, such as your permanent home and centre of vital interests, may also determine your tax residency. It’s a good idea to ensure your tax residency is correctly registered so you don’t have any issues with the Greek authorities down the line, including potential penalties. In addition, if you are living in Greece, it’s a lot easier to have your tax registration completed for everyday tasks such as medical services, buying and selling cars and accessing government services.

What does it mean to be a tax resident in Greece?

If you become a tax resident of Greece, then you will generally be required to declare your worldwide income. You need to plan accordingly for this, especially if you have properties or other income overseas, as this may have Greek tax implications, subject to applicable exemptions and double taxation treaties.

how to become a tax resident in Greece

There are some tax regimes in Greece which are particularly attractive for foreign residents who move their tax residency to Greece. These have been designed to make it attractive for foreigners to move their tax residency to Greece and to relocate to Greece.

These include the 50% tax exemption under Article 5C, which may entitle eligible people to a 50% exemption on qualifying employment or business income if they move to Greece, as well as the special tax regime for foreign pensioners under Article 5B, which offers a flat tax rate of 7% on qualifying foreign income. Our consulting team and independent tax and accounting partners can help you understand if you are eligible for either of these incentives and guide you through the process of making an application.

Using a tax representative to assist you in Greece

If you stay in Greece for more than the 183-day period (there are a number of more specific requirements and definitions which our independent tax partners can assist you with), you may prefer to appoint a tax representative. This is helpful if you don’t speak the language or if you don’t understand the tax system. Your tax representative can be an appropriately authorised individual or professional, and you can use them to manage your communication, work through the process, submit paperwork and generally authorise them to act on your behalf for your dealings with the tax office in Greece.

They can assist with updating your residency status in Greece and making the appropriate declarations to the Greek tax authorities to ensure that you comply with the applicable laws and regulations.

Obtaining your AFM (Greek Tax Number)

If you are a Greek citizen living overseas or returning to Greece, Tsaks Consulting can arrange your AFM (Greek Tax Identification Number) application on your behalf, with the appropriate authorisation and supporting documentation. Our team can coordinate the application and relevant administrative requirements, including where you are currently living outside Greece.

Obtaining an AFM is separate from becoming a Greek tax resident. You can have a Greek AFM while remaining a tax resident overseas. Our team can also coordinate assistance with updating your tax residency status through independent accounting professionals where required.

Conclusion

Once you stay in the country for more than 183 days, you will generally be considered a Greek tax resident, subject to applicable exceptions and other residency criteria. You should consult a qualified independent tax professional about registering your Greek tax residency and declaring your income as required. You can also do it yourself if you know the system, or call our consulting team for guidance and introductions to independent tax and legal advisers.

The most important thing is to ensure you comply with the requirements and also know and understand the different advantages you may get from being a tax resident, including access to relevant government services and the ease of working through the system. Call our team for more guidance on your regulatory needs and requirements in Greece.

Client testimonials

The Tsaks Consulting team is fantastic. They gave us detailed guidance on becoming a tax resident in Greece, including the requirements for compliance and how it is defined. Since we are planning how long to spend in Greece and our travel, as well as our residency and tax base, this advice and guidance is very important. The Tsaks Consulting team is excellent and provides a service that is on-point and responsive. They know about the different double tax treaties.

John C | Private Individual | Greece

If you are moving to Greece and worried about tax residency, just call Tsaks Consulting and speak to the team. They have nearly all the answers, and their accounting partners are great – reliable and professional. They will clear everything up for you so you understand and know how to work within the system.

Jason C | Private Individual | EU

Important Clarification

Tsaks Consulting Greece is a business consultancy, not an accounting or law firm. We provide consultancy, administrative assistance and coordination services, including assistance with AFM applications for appropriately authorised clients. Specialist tax, accounting and legal advice is provided by independent qualified professionals with whom we collaborate. Tax residency rules and obligations may change and should be assessed according to individual circumstances.