If you have ever wondered how to retire in Greece, the 7% flat tax on foreign pensions may be what turns a home in Athens from a daydream into a plan. Picture a retiree from Chicago. Every winter he scrapes ice off the windshield, every summer he rents an apartment in Glyfada, and every September at the airport he asks himself why he does not simply buy a place here and stay.
When your foreign pension is taxed at just 7% for up to 15 years, that question gets a very practical answer. And in September 2026, the Greek tax authority made the rules even clearer. Let us look at what applies, who qualifies and, the part we find most interesting, where in Attica to look for a home once you decide to retire in Greece.
What is the 7% flat tax for foreign retirees?
Since 2020, Greece has offered anyone who wants to retire in Greece on a foreign pension a special tax regime under Article 5B of the Greek Income Tax Code. If you receive a pension from abroad and move your tax residence to Greece, you can be taxed at a flat rate of 7% on all your foreign source income, for up to 15 consecutive tax years.
And all means all. Not only your pension, but also dividends, interest or rent from property outside Greece. Once you pay the 7%, your Greek income tax obligation on that income is settled. For comparison, the standard Greek income tax scale goes up to 44% for higher incomes. You will not need a calculator to see the difference, although your accountant will probably use one anyway.
What changed with the new AADE decision
On 22 September 2026, the Independent Authority for Public Revenue (AADE) issued Decision A.1192/2026, published in the Government Gazette (FEK B 5767/24.9.2026). It replaces the original 2020 decision. The good news is that anyone planning to retire in Greece can still count on the regime, and the 7% rate is confirmed. What the decision does is tidy up the procedures, the deadlines and the paperwork.
Two points deserve special attention. First, the tax is paid in a single payment by the last working day of December, with no instalments and no offsetting against other amounts. Second, if it is not paid in full and on time, the special regime is lost automatically for that year and every year after. The Greek tax office can be generous. Patient, it is not.
If you have already paid tax abroad on the same income, it may be credited against the 7% under the relevant double taxation treaty. Any excess, however, is not refunded.
Who can retire in Greece under the 7% regime?
The decision sets four main conditions. You must receive a foreign pension from mandatory public insurance, a legally established occupational fund or a group pension policy. You must not have been a Greek tax resident for 5 of the 6 years before your move. You must be moving from a country that has an active agreement on administrative cooperation in tax matters with Greece. And you cannot be enrolled at the same time in the Article 5A non dom regime for investors.
No property purchase or investment is required. And for the Greek diaspora, Greek heritage is no obstacle, because what counts is where you were tax resident in previous years, not what your passport says.
One detail is often overlooked: the regime applies only to the applicant. A spouse does not join automatically, and their situation is assessed separately.
Applications and deadlines: why October matters
For anyone planning to retire in Greece, the application is filed with the competent AADE tax service in Attica or Thessaloniki, online through the myAADE portal, by registered mail or courier, or in person by appointment. The deadline is 31 October of the relevant year, and any missing documents can be submitted by 30 November. AADE must respond within 60 days.
When you apply depends on when you move. If you transfer your tax residence by 2 July, you can apply in the same year or the next. If you arrive after 2 July, you apply in the following tax year. So if you moved to Greece in the first half of 2025 or 2026, your calendar may be looking at you rather insistently right now.
You will need official confirmation from your foreign pension provider and, where AADE cannot verify it automatically, tax residence certificates from your home country. Foreign public documents usually need an Apostille and an official Greek translation.
What the 7% regime means when you buy a home
You do not need to buy property to qualify, but in practice most people who retire in Greece want a home of their own. Here are three things worth keeping in mind.
Greek income is taxed normally
The 7% applies only to income from abroad. If you also buy a second apartment in Athens to rent out, that rent is Greek income and is taxed at the standard Greek rates.
The 15% transfer tax and permanent residents
The Greek government has announced that the property transfer tax for individual buyers from outside the European Union will rise from 3% to 15%, from July 2027. According to what has been reported so far, members of the Greek diaspora and people who live in Greece for at least six months a year will be exempt, which is exactly the profile of a retiree who actually moves here. The measure has not yet been voted into law, however, and the final text will decide. Read more in our article on the 15% property transfer tax.
Tax adviser first, house second
The right order is to plan the transfer of your tax residence first and then find the house. The reverse is not a disaster. It is just a little like buying a suit before you know whose wedding you are going to.
Where to retire in Greece: the best areas of Attica
The northern suburbs
Chalandri, Kifisia, Marousi and Psychiko offer greenery, quiet streets, good healthcare facilities and easy access by metro. Ideal if you want to retire in Greece with a neighbourhood rhythm without being far from anything.
The Athens Riviera
Glyfada, Voula, Vouliagmeni and Varkiza. The sea almost all year round, a morning walk by the water and a tram that takes you all the way to Syntagma Square. For many people who retire in Greece from abroad, this is the Greece they always dreamed of.
Central Athens
Kolonaki, Pangrati, Koukaki. Theatres, museums, cafés and everything within walking distance. Here a car is more of a burden than a luxury, and a trip to the bakery quickly turns into a social event.
FAQ: how to retire in Greece with the 7% tax
Can an American retiree apply?
The key condition is that the country you move from has an active agreement on administrative cooperation in tax matters with Greece, which should be confirmed case by case. US citizens are also taxed by the United States on their worldwide income wherever they live, so the double taxation treaty between Greece and the US plays an important role. If you are American and plan to retire in Greece, advice from a tax professional is not a luxury.
Do I need to live in Greece for 183 days a year?
The regime requires you to become a Greek tax resident. As a rule, you are considered a Greek tax resident if your permanent or main home or the centre of your vital interests is in Greece, or if you stay in the country for more than 183 days in any twelve month period.
Can I combine it with a Golden Visa?
Yes, the two are not mutually exclusive. The Golden Visa is a residence permit, while the 7% regime is a tax status. The difference is that the Golden Visa does not require you to live in Greece, whereas the 7% regime requires Greek tax residence. See also our article on the €250,000 Golden Visa.
Can I leave the regime later?
Yes, by submitting a revocation request by 31 October of any year. After that, however, you cannot rejoin Article 5B. Think of it as a one way ticket on that particular train.
The bottom line
If you want to retire in Greece, the 7% flat tax turns a home in Athens from a holiday dream into a sensible life choice for the next fifteen years, provided the paperwork is done properly and on time.
For more guides for international buyers, take a look at Epsilon Living.
If you, or someone close to you abroad, is thinking about spending their retirement years in Attica, the team at Epsilon Team Real Estate can help you find the right home, with the support of our trusted legal partners. Start the conversation at www.epsilonteam.gr.
This article is for information only and does not constitute tax or legal advice. Please consult a tax adviser or lawyer about your own situation.
Source: AADE, Decision A.1192/2026, FEK B 5767/24.9.2026.
Evita Eleftheroudaki
real estate agent | real estate appraiser
co-founder
EPSILON TEAM REAL ESTATE
evita@epsilonteam.gr
