Tax Benefits in Greece: Non-Dom Regime for Non-Residents

Greece is one of the most attractive countries for tourism due to its mild climate, clean beaches, picturesque nature and unlimited opportunities for recreation and entertainment, not to mention its instagram worthy sunsets, which have made some of the islands incredibly popular with holidaymakers during the summer months. In addition, Greece is increasingly considered an excellent place for relocation, as it has a well-developed infrastructure, a high standard of living – which is typical for a European country, and prices are significantly lower compared to other parts of the EU.

Wealthy foreigners choose Greece as a promising destination for real estate investment, as prices in the country are steadily growing, and demand for rentals exceeds the current supply by more than two times. A significant factor in favour of buying Greek real estate is that instead of VAT at the standard rate of 24%, the buyer pays only a tax on the transfer of ownership, which is currently 3.09% of the cadastral value.

In the current environment, some countries are tightening their tax laws, like the UK and Portugal for example, who have closed their preferential programmes for non-residents. This is forcing investors and wealthy individuals to look for alternatives to optimise taxation and preserve capital in other countries.

Of course, when choosing favourable tax conditions, the popular tax havens traditionally lead, where there is no direct taxation, and tax rates are significantly lower, for example, the UAE or the Cayman Islands. Nevertheless, among European destinations there are countries with loyal tax conditions and benefits, like Greece.

The Greek Non-Dom tax regime allows you to significantly reduce your tax burden. We tell you how you can use the Non-Dom regime in Greece and what advantages it provides.

What is the Non-Dom Tax Regime in Greece?

In an effort to attract investors and high net worth individuals (HNWIs), many countries around the world offer a special non-resident status called Non-Dom. Taxpayers who meet the requirements of non-resident status gain access to a number of tax advantages both abroad and at home.

Greece is one of these countries, offering wealthy individuals a flat tax rate on their global income in exchange for moving their tax residence to the country.

According to Article 5 of the law L.4172/2013, any person wishing to change their tax residency to Greek can take advantage of this procedure if they meet a number of conditions.

The essence of the special Non-Dom tax regime for non-residents is to pay a fixed amount per tax year, regardless of the total income received from abroad. However, there is no need to declare any foreign income in Greece.

Who Can Benefit from Non-Dom Regime?

Foreigners can benefit from preferential conditions on any income received from foreign sources if they make an investment of at least €500,000 in:

• Real estate, for example, within the framework of the Greek Golden Visa programme
• Financial investment products
• Local business

The investment must be completed within 3 years of the application and the flat tax rate is €100,000.

The applicant must not have been a tax resident in Greece for the last 7 of the 8 years prior to applying for the Non-Dom tax regime.

If the investor also includes family members in the application, the additional flat tax is an additional €20,000 per person per year.

The Non-Dom regime is valid for 15 years from the date of approval of the application, with no further extension provided. The application must be submitted no later than March 31 of the current tax year.

There are two more categories of foreigners who can benefit from the preferential tax regime in Greece:

• Pensioners, who have changed their tax residency to Greek and pay a tax of 7% on all income received outside the country. In addition, a special solidarity contribution will not be levied on said income arising abroad. In this case, the applicant must not have been a tax resident of Greece for the last 5 of the 6 years prior to filing out the application. The validity period of the regime is 15 years from the date of approval of the application, with no further extension provided.

• Business professionals and official employed workers are exempt from paying tax on half (50%) of the total income from entrepreneurial activity or from paid employment that they receive in Greece during the tax year. The regime is valid for 7 years, without the right to further extend. To benefit from the exemption, you will need to have spent at least 2 years in the country and not have been a tax resident of Greece for the last 5 of the 6 years prior to filing the application.

What Conditions Must be Met?

To obtain the status of a tax resident of Greece, you need to be physically present in the country for at least 183 days during the calendar year. It is important to note that short trips to other Schengen countries do not interrupt this period, which begins from the moment you enter into Greece.

However, simply staying in Greece as a tourist or for medical treatment is not enough. To obtain tax residency status, a foreigner must have a residence permit and demonstrate close financial or social ties with Greece. An application to change tax residency must be submitted before March 31 of the current year.

The key requirement for obtaining Non-Dom status is not having been a tax resident in Greece for seven out of the last eight years, which is carefully checked by the Hellenic Tax Authority.

If the applicant for the preferential tax regime is registered as a tax resident of another country during the specified period, or is applying for a Greek tax identification number for the first time, additional supporting documents are generally not required. However, if the data is insufficient, the Tax Authority may request a tax residency certificate from the country of residence, a copy of the tax return filed in another country, or, as a last resort, other evidence of permanent residence in the territory of another country.

How to Apply for the Non-Dom Regime in Greece

To activate the Non-Dom status, an application must be submitted to the Greek tax authority serving non-residents by 31 March of each tax year. Once the application is submitted, the applicant has 60 days to provide the required documentation – but no later than 31 May.

The Hellenic Tax Authority will review the application within 60 days of submission and notify the tax authorities of the previous country of residence of the change of tax jurisdiction.

The condition for maintaining Non-Dom status is the annual payment of a flat tax of €100,000, plus an additional €20,000 for each family member included in the application. The payment must be made in one lump sum before the last working day of July of each tax year.

It is important to remember that failure to pay the flat tax by December 31st will automatically result in the loss of the Non-Dom status. In this case, the individual will be subject to income tax in Greece on all of his/her worldwide income, in accordance with the general provisions of Greek tax law.

Advantages of the Greek Non-Dom Regime

Greece has a progressive personal income tax system, where the tax rate depends on the amount of annual income:

• 9% — for income up to €10,000
• 22% – for income from €10,000 to €20,000
• 28% – for income from €20,000 to €30,000
• 36% – for income from €30,000 to €40,000
• 44% – for income over €40,000

The higher rate only applies to the amount above the specified threshold. For example, on an annual income of €25,000, the first €20,000 will be taxed at 22%, and the remaining €5,000 at 28%.

For example, under the standard tax system, for a person with an annual income of €500,000, the income tax will be around €210,000. This is more than twice the flat rate provided by the Non-Dom regime.

In addition, the Non-Dom status exempts the investor from inheritance and gift taxes on foreign assets, as well as from the obligation to declare income received outside Greece.

Greece Golden Visa for Investors

Receiving a residence permit in Greece for investment in real estate is one of the most popular programmes in the world – a record number of Greek Golden Visas were issued in 2024. This is largely due to the increase in the minimum entry threshold for investors from €250,000 to €800,000 in popular regions of the country.

From September 1, 2024, new requirements for the minimum amount of investment in real estate came into force:

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

The programme allows an investor to purchase one property with an area of ​​at least 120 m².

However, there are exceptions that allow the entry threshold to be kept at €250,000, with no restrictions on area or region.

This is possible in two cases:

• When purchasing properties of historical and cultural value that are subject to restoration. The investor carries out all the work independently, and full restoration of the building is a mandatory condition for extending the residence permit after 5 years.
• When converting commercial real estate into residential. In this case, the developer buys the commercial property, completely renovates it, repairs it and turns it into a modern residential complex, taking into account all safety and energy efficiency requirements. The investor only invests their funds, as the developer does all the work, and the buyer ultimately receives a new apartment in a renovated building that meets all existing standards and conditions of the Golden Visa programme.

To participate in the programme, you must meet the investment requirements, have no criminal record or problems with the law, and obtain local insurance. Together with the main applicant, the spouse, children under 21, and parents of both spouses can receive a residence permit as well. Residency status is granted within 3 to 6 months and is issued for 5 years with the possibility of extension.

One of the main advantages of the Greek Golden visa is the absence of any requirements for a minimum period of stay in the country to maintain the status of your residence permit. The investor only needs to visit Greece to submit documents and submit their biometric data, which distinguishes this programme from others that require permanent residence.

In addition, the investor receives:

• Opportunity to travel visa-free to the Schengen countries.
• Possibility of obtaining Greek and EU citizenship after 7 years, subject to compliance with the residency requirements and successful passing of the Greek language exam.
• Access to local health and education systems.
• Privilege to use the services of Greek and international banks, and open accounts.
• Possibility of using preferential tax regimes, in particular Non-Dom, to optimise taxation – for investments of €500,000.
• Opportunity to live in a country with a warm climate, a calm political and economic situation, a high standard of living and friendly residents.
• Reliable backup option for the whole family in case of economic or political upheaval.

Along with all the listed advantages above, the investor also becomes the owner of their own property on the Mediterranean, which can be profitably rented out long term to receive a stable passive income in foreign currency to the amount of 4-6% per annum, or used for their own residence.

Which Other Countries Have Tax Breaks for Foreigners?

To attract wealthy foreigners and stimulate economic growth, many countries offer tax breaks.

Italy. Italy was one of the first countries to implement the Non-Dom regime, with the programme available to those who have not been tax residents of Italy for 9 out of the last 10 years. To benefit from this, you must transfer your tax residency to Italy and pay a flat tax of €200,000 per year on your worldwide income, regardless of its size. The applicant is also exempt from inheritance, gift and wealth tax abroad. If the status is extended to one of your relatives, this amount increases by €25,000 per year.

Until autumn 2024, the fixed payment was €100,000, but the Italian government has decided to double it. For participants who already benefit from this, the conditions remain the same.

The status is valid for 15 years from the date of receipt and cannot be extended.

United Kingdom. The UK’s favourable tax regime offered tax exemption on overseas income and capital gains for 15 years. However, the government has abolished it as of April 2025. New residents will be given a deferment of tax on worldwide income for the first four years of residency, and then there will be a transition period for those already using the Non-Dom regime.

Cyprus. The Non-Domicile regime is available to those who have not resided on the island for 17 of the last 20 years – for example, investors purchasing property under the Cyprus Permanent Residence by Investment programme. To qualify, you must spend 183 days a year in Cyprus, or 60 days a year, provided that you do not spend 183 consecutive days in any other country. You must also work or run a business in Cyprus and have a permanent address here – either your own or a long-term leased property.

Non-Domicile status holders are exempt from tax on foreign income, gains from the sale of securities, real estate, inheritance and capital gains, except in cases of the sale of real estate. Tax on income from rental property is calculated at the standard income tax rate, but can be reduced in the first 10 years of status.

Malta. To obtain a preferential tax status in Malta, it is necessary for you to confirm your intention to reside in the country and not to spend more than 183 days a year in any other country. This regime can be used by investors – for example, those who apply for a Malta residence permit for investment. According to local legislation, income received outside the country is not taxed, with the exception of income transferred to Malta or received directly on the island. At the same time, the income tax in the country for individuals is only 15%.

Summary

The standard tax system in Greece is in many ways similar to other European countries, but the sunny Hellas cannot be called a preferential tax haven. However, the country provides wealthy foreign citizens and investors with the opportunity to significantly optimise their taxation thanks to the preferential Non-Dom regime, significantly reducing their tax burden over a long period.

The Non-Dom regime may be particularly attractive to participants in Greece’s Golden Visa program, as the flat tax rate is often more advantageous for wealthy individuals than paying taxes according to the country’s standard progressive scale. In addition, obtaining a residence permit in a European country opens up a wide range of additional opportunities.

If you are interested in obtaining a residence permit in Greece for investment, contact the experts at Astons today. Our specialists will provide the necessary information and details, answer all your questions, and select the best offers for your needs and goals.