Greek Flat Tax: Greece’s HNWI Tax Regime

In this article, we look at the Greek Flat Tax regime. This is a special flat tax regime for HNWIs closely modelled on the Italian Flat Tax.

We begin with an overview of the tax, what it is, how to qualify and exactly how much you could save compared with Greece’s standard progressive system.

We also look at some other similar HNWI-friendly regimes in Europe, weighing up the pros and cons of each.  

Greek Flat Tax: Introduction

Greece’s Flat Tax regime is aimed at HNWIs (High Net Worth Individuals), offering them the option to pay a flat rate of income tax on all foreign income. 

Any Greek-sourced income, however, remains taxed at the regular Greek progressive rate. 

If that sounds familiar, it’s because Greece’s flat tax is based on Italy’s Flat Tax regime, which predates Greece’s by around two years.

Originally, both flat tax regimes were almost identical, offering a flat tax of €100,000 on all foreign income. But then, in late 2024, the Italian government raised the threshold to €200,000, doubling the tax burden for HNWIs overnight. 

The Greeks, to date, have decided not to follow suit. We hope the situation remains such, as the lower cost helps to differentiate the Greek offering and helps to make the jurisdiction far more competitive overall. 

Why Greece?

By default, the Greek tax system is far from desirable. 

Its standard progressive system ramps up quickly to 44% for income of €40,000 and above. 

Property taxes are higher still, and its mandatory yet fiddly electronic filing system for entrepreneurs could well be the worst Greek punishment since Sisyphus.

Yet on the other side, Greece has lots of programmes we like, including a dedicated digital nomad visa programme and a solid golden visa programme. 

The Greek golden visa programme is one of the last of its kind in Europe, and with real estate investment prices starting at €250,000, it’s also one of the cheapest. 

Greece’s flat tax regime can be integrated with its golden visa programme, making a strong case for obtaining tax residency there.

It also undercuts the Italians by half while allowing Greece to compete with more traditionally tax-friendly jurisdictions like Malta. 

When you put all those together, the picture starts to look very different. 

So if you’re looking for a low-tax residence in Europe, Greece is one country you shouldn’t overlook. 

Greek Flat Tax: Overview

Under the Greek Flat Tax regime, you pay a fixed flat rate of €100,000 per annum. 

Family members can also be added for an additional €20,000 per person, per year. 

This rate applies to foreign-sourced income only. Greek-sourced income will continue to be taxed at normal rates, while the flat tax applies to all your foreign-sourced income, regardless of how much foreign income you earn.

You also enjoy exemption from inheritance and gift tax on foreign assets. 

As it’s a flat tax, however, no foreign tax credits are available, so paying taxes abroad won’t offset the lump sum amount, which remains fixed for the duration. 

You can avail of the flat tax for up to a maximum duration of 15 tax years, after which time you will revert to the standard progressive rate of income tax. 

It’s worth pointing out that it takes less than half that time to naturalise, after which time you are free to live anywhere in the EU that you choose. 

Before you do that, however, you need to first understand why the Greek Flat Tax regime is also often referred to as the “regime for investors.”

Greek Flat Tax: How To Qualify

To qualify for the Greek Flat Tax, you must not have been a Greek resident for seven out of the preceding eight years before moving to Greece. 

You are also required to make a minimum investment of €500,00 in real estate, a Greek-based business or state-approved funds/bonds. 

As investors, we favour the first option, especially if you’re planning on using Greece as your base of operations and also wish to bring family members.  

Keep in mind, also, that this investment can also be the foundation of a Greek golden visa application, giving you full Schengen area access – get in touch and we can talk you through it.

Regardless of which option you chose, you have three years from the date of your application to make your investment. 

Once successful, you can take advantage of the special tax regime for a maximum of 15 years, after which point the standard progressive tax rate applies. 

This rate also applies to all your Greek-sourced income, which naturally includes the investments you make within Greece, so it’s worth exploring that next. 

Greek Income Tax Structure

Under the special Greek Flat Tax regime, investors can take advantage of a €100,000 tax exemption on all foreign-sourced income for a period of 15 years. 

But what about locally sourced income? Or, for that matter, income generally once the 15-year period has elapsed?

In both cases, Greece’s standard progressive income tax rates will apply and, as with the majority of older EU member countries, the rates ramp up dramatically for high earners. 

€ Income	Rate
0 – 10,000	9%
10,001 – 20,000	22%
20,001 – 30,000	28%
30,001 – 40,000	36%
40,001+	44%

Greek Flat Tax: Benefits

The main benefits of the Greek Flat Tax, beyond the immediate tax savings, are its cost, family friendliness, flexibility and chronology. 

• Cost: At a cost of €100,000 per annum, the Greek Flat Tax regime is a full 50% cheaper than its next closest equivalent, the Italian Flat Tax. 

• Family Friendly: You can also add additional family members for a cost of €20,000 per person. Worth noting here, also, that this amount is a full 20% cheaper than the Italian regime. 

• Flexibility: The Greek regime gives you a choice of investment options, including a real estate option. This investment can also form the foundation of a golden visa application, granting visa-free access to 29 countries. 

• Chronology: You can enjoy the benefits of the Greek Flat Tax for up to 15 years. If combined with a golden visa, you can opt to naturalise after seven years. 

In other words, the Greek Flat Tax offers many benefits with few, if any, drawbacks, beyond the standard progressive rate for domestic income. 

The regime becomes even more advantageous when combined with a residency option such as Greece’s popular golden visa. 

Regardless of which route you choose, you will still need to move to Greece to take advantage of this tax regime, and, since moving anywhere is a huge life step, it’s important to first review the alternatives. 

Greek Flat Tax: Alternatives

While beneficial for HNWIs, the Greek Flat Tax regime is far from the only game in town. 

Indeed, one of its most common criticisms is that it is little more than a rip-off of the Italian Flat Tax regime, which, given its structure, is hard to argue against. 

Beyond that, we have some of Europe’s non-dom and special expatriate regimes, which are also well worth exploring. 

Italy’s Flat Tax Regime

Italy’s Flat Tax regime is the progenitor of the Greek version, predating it by two years. 

In those two years, however, the Italian government opted to double the annual flat tax amount from €100,000 (like Greece’s) to €200,000, drastically reducing the appeal of the regime in the process. 

Similarly, the cost of adding family members is also higher at €25,000 per person rather than €20,000 in Greece. 

One figure that’s still the same, however, is the duration of the special regime – both the Italian and Greek Flat Tax regimes last for a full 15 years. 

In both cases, the tax rate then reverts to standard progressive levels, where again the rates differ. In Italy, those earning over €50,000 are charged 43%, while in Greece the highest income bracket starts at €40,000 with a tax of 44%. 

Those applying for the Italian regime do have the benefit of being able to receive an advance tax ruling. This means you can check your eligibility before beginning the process in earnest. 

And since the tax ruling is considered binding, you don’t have to worry about any surprises further down the line, providing additional peace of mind. 

Cyprus’ Non-Dom Regime

Greece’s Flat Tax regime is often referred to as a non-dom regime, though that’s not technically accurate. 

Cyprus, on the other hand, does have a true non-dom regime, based on the now-defunct UK model, which maintains a distinction between domiciled and non-domiciled for tax purposes. 

Under this regime, you can enjoy zero capital gains plus a complete exemption on your worldwide interest, dividends and similar forms of passive income, for up to 17 years. 

Cyprus is also quite flexible when it comes to tax residency, allowing you to establish tax residency in as little as 60 days. 

Speaking of residency, Cyprus also has its own golden visa programme, though it should be noted that, although an EU member, the country is not a part of the Schengen agreement. 

For entrepreneurs, however, Cyprus has one clear advantage over Greece – a 12.5% corporate tax rate versus 22% in Greece. 

The administrative burden is also considerably lower, especially considering Greece’s problematic electronic system, which was meant to make filing taxes easier, but has yet to deliver on that promise. 

Gibraltar’s Category 2 Status

Gibraltar is a tiny British overseas territory at the base of the Iberian Peninsula. Located at the mouth of the Mediterranean, it shares a land border with Spain and a maritime border with Morocco.  

Though a de facto member of the UK, its special status gives it economic autonomy, which is why Gibraltar retains its very own non-dom status called Category 2. 

Under this regime, a qualifying individual is only taxed on the first £118,000 of all their worldwide annual income. This sets the current minimum amount at £37,000 and the maximum amount at £42,380.

Gibraltar doesn’t have any wealth or capital gains tax, and its corporate tax is 15%, adding to the appeal. Cat 2 applicants, however, require a minimum of £2 million in assets, or approximately $2.6 million USD. 

Another key point; Gibraltar exited the EU alongside Britain in 2020, and, as with Cyprus, Gibraltar is not a part of the Schengen agreement.

Stakeholders have apparently “reached an agreement”, but it’s still theoretical and so, given the fraught history of the border, cross-border difficulties remain a concern. 

Spain’s “Beckham Law”

In neighbouring Spain, the Special Expatriate Regime, better known by its nickname The Beckham Law, offers an exemption on foreign-sourced income combined with a flat tax of 24% on locally sourced income up to a maximum of €600,000.

This situation lasts for a maximum of six years, and you must reside in Spain to take advantage. 

The regime has been tinkered with multiple times over the years for better and for worse.

First, the better; they’ve expanded the regime to include a broader range of candidates, including digital nomads. 

As for what’s worse, you have all the restrictions which successive governments added to it over the years. The biggest of these changes has been the €600,000 ceiling, where previously there had been none. 

If the bulk of your income comes from abroad and your Spanish income is under this value, then you need not worry.

If your locally sourced income exceeds this cap, however, regular progressive rates apply.

Given how high Spanish taxes are (potentially up to 50% depending on the region you’re living in), this could be a dealbreaker.  

Portugal’s IFICI Programme

It’s a similar story in neighbouring Portugal, where successive governments have attempted to score brownie points by fiddling with perfectly functional legislation. 

We were huge fans of the country’s NHR (Non-Habitual Resident) programme, until they decided to cancel it and replace it with a new, more restrictive programme called the IFICI. 

The IFICI (Tax Incentive for Scientific Research and Innovation) narrowed the eligibility scope significantly with a primary focus on science and technology. 

As with the Beckham Law, there is a flat tax rate, this time of 20%, while foreign-sourced income is exempt. Another key difference is that the IFICI is valid for ten years, rather than the Beckham Law’s six. 

Malta’s TRP/GRP 

With Portugal’s NHR replaced and Spain’s Beckham Law a shadow of its former self, Malta’s twin programmes have taken up the slack. 

First, there’s TRP, which stands for The Residence Programme. What it lacks in appellation it more than makes up for in taxation, with a flat tax of 15% on foreign income remitted to Malta. (If you don’t remit it, it’s not taxed.)

Local-sourced income is taxed at 35%, which, though not ideal, is still notably cheaper than most of its European neighbours, whose upper bands tend to tax in the upper 40s. 

The GRP stands for Global Residence Programme, and it’s the same, except the TRP programme is aimed at other Europeans, while the GRP is for rest-of-world applicants. 

Another reason we’re fans of these twin programmes is flexibility. Malta is a lot more chill when it comes to physical presence requirements than other countries, making the Maltese TRP/GRP solution ideal for global entrepreneurs on the move. 

Greek Flat Tax: At A Glance

• The Greek Flat Tax regime lets you pay an annual fixed flat rate of €100,000 on all foreign-sourced income. 
• You can also add family members for €20,000 per person, per year.
• To qualify, you must not have lived in Greece for seven out of the preceding eight years before you apply. 
• You must also make a minimum investment of €500,000 (which includes a real estate option), though this can also be combined with a golden visa. 
• The Greek Flat Tax regime lasts for a maximum of 15 years. 

Greek Flat Tax: Conclusion

The Greek Flat Tax offers many key benefits, especially when compared with its doubly expensive Italian rival. Its value is enhanced further by the fact that it can also be combined with a golden visa, which allows you to naturalise in seven years, while enjoying significant tax relief for up to 15 years. 

In other words, the Greek Flat Tax regime is certainly one you will want to investigate, though you’ll want to do so in conjunction with other alternatives to find the best European-based solution for you. 

Still confused? We can help. Contact Millionaire Migrant today and begin your low-tax journey today.

Greek Flat Tax FAQs

What is the Greek Flat Tax for HNWIs?

The Greek Flat Tax for HNWIs is a special tax regime allowing you to pay a fixed rate of €100,000 per annum on all foreign-sourced income for up to 15 years. Additional family members can be added for €20,000 per person. 

You must make a minimum investment of €500,000 in the Greek economy (e.g. stocks, bonds, real estate) and must not have been a resident of Greece for seven out of the previous eight years before you apply.  

Is there a Greek Flat Tax for pensioners?

Yes, there is also a second Greek Flat Tax regime aimed at attracting foreign pensioners to live in Greece. This (separate) tax regime offers a flat rate of 7% rate on all foreign-sourced income, including pensioners. 

As with the HNWI regime, the flat tax regime for pensioners lasts for a maximum of 15 years. 

How do the Greek and Italian Flat Tax regimes compare?

The Italian Flat Tax regime is significantly more expensive than its Greek counterpart. 

When it first launched, the Italian Flat Tax rate was set at €100,000 annually, however, the government later doubled it to €200,000. 

The Greek version, however, remains at €100,000. Furthermore, the cost to add family members is €20,000 per person, while in Italy it costs €25,000.