The law has a sunset clause. Check the current expiration date with a Greek tax advisor before you move; these incentives don't last forever. And the reduction doesn't apply to Greek-source income, so if you buy rental property in Athens, you'll pay full tax on those rents.
How the 50% tax reduction actually works
The reduction applies to your worldwide income except what Greece considers Greek-source. That means salary, freelance fees, business profits, investment income, and rental income from outside Greece all qualify—as long as you meet the residency test and haven't been a Greek tax resident in the five years before you apply.
The seven-year clock starts the tax year you first establish Greek tax residence. If you move to Athens in March 2024 and spend 183 days there by December 31, 2024, your reduction period runs from January 1, 2024 through December 31, 2030. After that, you pay full Greek tax rates on all income, like any other resident.
The 50% reduction is substantial. Greece's top marginal income tax rate is 44% (as of 2024). With the reduction, you'd pay 22% on qualifying foreign income instead. For a remote worker earning €100,000 annually from abroad, that's €22,000 in tax instead of €44,000—a saving of €22,000 per year, or €154,000 over the full seven years.
But the reduction is not a tax holiday. You still file a Greek tax return, report all worldwide income, and pay the reduced rate. You don't get to hide money or avoid reporting. The Greek tax authority (Aρχή Δημοσίων Εσόδων, or AADE) expects full disclosure.
Who qualifies and who doesn't
You must not have been a Greek tax resident at any point in the five years before you apply. If you lived in Greece in 2019 and left, you cannot use this law in 2024. The five-year lookback is strict and has no exceptions.
You must also establish Greek tax residence in the year you want the reduction to start. Tax residence requires either spending more than 183 days in Greece in a calendar year or having your center of vital interests there. Center of vital interests is vaguer—it includes where your family lives, where you work, where your economic interests are—but the 183-day rule is clearer and easier to prove. If you're serious about the reduction, spend 184 days in Greece in your first year.
The reduction does not apply to pensions, whether Greek or foreign. If you're a retiree drawing a US Social Security pension or a UK state pension, that income is taxed at full Greek rates, not the reduced 50%. This is a major limitation for retirees, who are one of the groups the law was designed to attract. A 65-year-old American with a €30,000 annual Social Security benefit will pay full Greek tax on it regardless of the Law 4758 reduction.
Greek-source income is also excluded. If you earn a salary working for a Greek company, or rent out an apartment in Athens, or have a Greek business, that income is taxed at full rates. The reduction only covers income from outside Greece. This matters if you plan to work remotely for a Greek employer or invest in Greek real estate.
The law also excludes certain types of income. Capital gains on the sale of real estate are taxed separately under Greek law and do not qualify for the reduction. Dividend income from Greek companies may be treated as Greek-source depending on the structure. If you're considering investments, ask a Greek tax advisor whether they'll qualify before you commit money.
Non-EU citizens and EU citizens are treated the same under this law. Your nationality doesn't matter. What matters is whether you meet the residency and prior-residence tests.
The mechanics of establishing tax residence
To claim the reduction, you must first establish Greek tax residence. This is not automatic when you arrive. You need to register with AADE, the Greek tax authority, and obtain an AFM (Αριθμός Φορολογικού Μητρώου), your Greek tax identification number. You can apply for an AFM at any AADE office or online through the AADE portal. You'll need your passport, proof of address in Greece (a lease or utility bill), and a completed form.
Once you have an AFM, you file a Greek tax return for the year you establish residence. In that return, you declare all worldwide income and request the Law 4758 reduction. You'll need to provide evidence that you meet the residency test—either passport stamps or flight records showing 183+ days in Greece, or documentation of your center of vital interests.
The Greek tax year runs January 1 to December 31. Tax returns are typically due by May 31 of the following year, though extensions are available. If you establish residence partway through a year, you may still qualify for the reduction for that partial year, but verify this with a Greek tax advisor because the rules can be complex.
You must file a return every year to maintain the reduction. If you skip a year or fail to report income, the reduction can be revoked. The Greek tax authority has been increasingly strict about enforcement in recent years.
What happens after seven years
When the seven-year period ends, you pay full Greek tax rates on all income, like any other resident. There is no renewal or extension of the reduction. If you want to leave Greece and then return later, you would need to wait five years before you could requalify under the law—but the law itself may have expired by then.
The sunset clause is real. Law 4758/2020 was originally set to expire on December 31, 2023, but was extended. As of early 2024, the current expiration date is December 31, 2024, though this has changed before. Before you move to Greece specifically to use this law, contact a Greek tax advisor or the AADE to confirm the law is still in effect and when it actually expires. Do not rely on this article for the current expiration date; tax laws change, and the cost of being wrong is high.
Double taxation and treaty considerations
Greece has tax treaties with most major countries, including the US, UK, Canada, and Australia. These treaties prevent you from paying tax twice on the same income. Generally, you pay tax in the country where the income is sourced, and the other country gives you a credit. But the Law 4758 reduction complicates this.
If you're a US citizen, you must file a US tax return reporting worldwide income regardless of where you live. The US will tax your foreign income, but you can claim a foreign tax credit for taxes paid to Greece. With the 50% reduction, you'll pay less to Greece, so your US tax bill may be higher. You don't get a free pass just because you moved to Greece.
The same applies to UK citizens and others. Your home country may still tax you on worldwide income. The Law 4758 reduction helps, but it doesn't eliminate your home-country tax obligation. Factor this into your planning. A US remote worker earning €100,000 might pay 22% to Greece (€22,000) but still owe US tax on the full amount, with a credit for the Greek tax paid. The net benefit depends on your home country's tax rates and treaty provisions.
Practical next steps
If you're considering this, hire a Greek tax advisor before you move. Not after. A good advisor costs €500–€2,000 for an initial consultation and can save you far more by structuring your move correctly. They can confirm the law is still active, verify your eligibility, and help you establish tax residence properly.
Second, confirm you can meet the 183-day requirement. If you have a job that requires you to be elsewhere for part of the year, or family obligations that pull you away, you may not qualify. The 183-day test is measured in a calendar year, and there are no exceptions for travel or work.
Third, understand your home-country tax obligations. If you're a US citizen, UK national, or citizen of another country with worldwide taxation, you still owe tax at home. The Greek reduction helps, but doesn't eliminate your home obligation. Get advice from a cross-border tax specialist in your home country before you move.
Fourth, if you have a pension, understand that it won't qualify for the reduction. If your primary income is a pension, this law may not help you much. If you have other foreign income—rental income, investment income, business income—it will qualify.
Finally, don't assume the law will last. It has been extended once already and may expire again. If you're moving to Greece primarily for this tax break, build in a contingency plan for what happens after seven years or if the law expires sooner.
