Greece Offers 7% Tax on All Foreign Income for 15 Years — Here's the Fine Print

Greece offers Canadian retirees something remarkable: a 7% flat tax on all foreign income for 15 years. That's not a typo. A Canadian receiving $50,000 CAD annually in pension income would pay approximately $3,500 in Greek taxes—compared to potentially $15,000 or more in Canada depending on province. Combined with a cost of living 30-40% below Canadian cities, Greece has emerged as one of Europe's most compelling retirement destinations.

The catch? Getting residency as a non-EU citizen requires either significant investment (the Golden Visa) or proof of substantial independent income. Greece isn't chasing budget retirees—it wants financially secure foreigners who will contribute to the economy without competing for local jobs. For Canadians with solid pensions and investment portfolios, however, the math works extraordinarily well.

What Canadian expats need to know:

• The 7% flat tax regime for pensioners applies to all foreign income—pensions, dividends, interest, capital gains—for 15 consecutive years
• The Golden Visa now operates on a tiered system: €250,000 for property conversions, €400,000 for most regions, €800,000 for Athens, Thessaloniki, and popular islands
• The Canada-Greece Tax Treaty (2009) exempts the first $15,000 CAD of pension income from Canadian withholding and caps rates at 15% above that threshold
• Cost of living runs €1,000-€2,500 monthly depending on location—roughly 30% less than comparable Canadian cities
• No minimum stay requirement for Golden Visa holders to maintain residency, though the 7% tax regime requires 183+ days annually
• Path to citizenship available after 7 years of continuous residence with language requirements

Why Greece Appeals to Canadian Retirees

Greece has transformed from a country recovering from economic crisis to one actively courting wealthy foreigners. The government's strategy is straightforward: attract retirees and investors who bring capital, spend locally, and don't compete for Greek jobs. For Canadians, several factors make Greece particularly attractive.

The 7% Flat Tax Advantage

Greece's non-dom regime for pensioners is arguably the best tax deal in Europe for retirees. Under this program:

• All foreign-sourced income taxed at flat 7%—pensions, dividends, interest, rental income, capital gains
• Duration: 15 consecutive years (longer than Portugal's former NHR or Italy's programs)
• No cap: The 7% applies regardless of income level
• Tax credits available: Foreign taxes paid can offset the 7% Greek liability under double taxation treaties

Example calculation:

• Canadian pension income: $60,000 CAD annually
• Greek tax at 7%: ~$4,200 CAD
• Potential Canadian tax (Ontario): ~$12,000 CAD
• Annual savings: ~$7,800 CAD

Over 15 years, that's potentially $117,000 in tax savings—and that's before considering investment income.

Mediterranean Lifestyle at European Prices

Greece offers First World infrastructure and EU membership at prices significantly below Western Europe:

• Housing: Modern apartments from €500-€900/month outside Athens city centre
• Healthcare: WHO ranks Greece 14th globally; private insurance from €50-€150/month
• Food: Fresh Mediterranean cuisine at local tavernas for €10-€15 per meal
• Climate: 250+ sunny days annually, mild winters in southern regions

Schengen Access and EU Benefits

Greek residency provides:

• Visa-free travel throughout the 27-country Schengen Area
• Right to travel up to 90 days in any 180-day period across the EU
• Access to EU healthcare with European Health Insurance Card (for travel)
• Path to EU citizenship after 7 years (with Greek language proficiency)

The Golden Visa: Residency Through Investment

Greece's Golden Visa program, launched in 2013, grants five-year renewable residency permits to non-EU nationals who make qualifying investments. After significant reforms in 2024-2025, the program now operates on a tiered system.

2025 Investment Thresholds

Important changes for 2025:

• Minimum property size of 120 square metres for Tier 1 and Tier 2 investments
• Short-term rentals (Airbnb) prohibited for Golden Visa properties—violation results in permit cancellation and €50,000 fine
• Properties must be used for personal residence or long-term rental only

Alternative Investment Options

Real estate isn't the only path. Greece also accepts:

Golden Visa Benefits

• Five-year renewable permit (no limit on renewals while investment maintained)
• No minimum stay requirement to maintain residency
• Family inclusion: Spouse, children under 21 (extendable to 24), parents of both spouses
• Work restrictions: Cannot work as employees in Greece, but can operate businesses, receive dividends, and earn passive income
• Schengen travel: Visa-free access to 26 European countries
• Path to permanent residency: After 5 years with 6+ months annual presence
• Path to citizenship: After 7 years continuous residence with language requirements

Application Process

1. Obtain entry visa from Greek consulate in Canada
2. Open Greek bank account and obtain tax number (AFM)
3. Complete qualifying investment (property purchase, deposit, etc.)
4. Submit application to Greek Immigration Service
5. Biometrics and documentation review
6. Receive residence permit (processing: 3-6 months, though backlogs exist)

Required documents:

• Valid passport (6+ months validity)
• Proof of investment
• Health insurance valid in Greece
• Clean criminal record
• Proof of legal income source for investment

Processing reality: Greece has faced significant backlogs, with approximately 50,000 pending applications. However, digital modernization initiatives in 2025 have improved processing times to 3-6 months for straightforward cases.

The 7% Flat Tax Regime for Pensioners

Greece's non-dom regime for retirees (Article 5B of Law 4172/2013) offers extraordinary tax benefits for qualifying foreign pensioners.

Eligibility Requirements

To qualify for the 7% flat tax regime, you must:

1. Earn pension income from abroad (private pensions, government pensions, annuities, or pension-like income including dividends, interest, and capital gains)
2. Not have been a Greek tax resident for 5 of the previous 6 years
3. Transfer tax residence from a treaty country — Canada has a double taxation treaty with Greece, so Canadians qualify
4. Become Greek tax resident — spend 183+ days annually in Greece
5. Apply by March 31 of the relevant tax year

What the 7% Covers

The flat rate applies to all foreign-sourced income:

• Pensions (government and private)
• RRIF withdrawals
• Dividends from foreign investments
• Interest income
• Capital gains on foreign assets
• Rental income from foreign property
• Annuities

What's NOT Covered

• Greek-sourced income is taxed at standard Greek rates (up to 44%)
• Greek property rental income follows normal taxation
• Employment in Greece (prohibited for Golden Visa holders anyway)

Tax Calculation Example

Compare this to Canadian taxation on $85,000 income: approximately $18,000-$25,000 depending on province.

Application Process

1. Submit application to Athens Tax Office for Foreign Tax Residents by March 31
2. Provide proof of foreign pension income (pension statements, tax returns)
3. Demonstrate non-residency in Greece for 5 of past 6 years
4. Confirm tax residence transfer from treaty country
5. Decision within 60 days of complete application

Important Considerations

• Payment deadline: Full 7% tax due by last working day of July annually
• Failure to pay: Regime terminated; standard Greek taxation applies retroactively
• Duration: 15 consecutive years maximum
• Family: The regime applies only to the qualifying individual—spouse must qualify separately
• Double taxation credits: Foreign taxes paid can offset the 7% liability under applicable treaties

The Canada-Greece Tax Treaty

The Canada-Greece Tax Convention, signed June 29, 2009, governs how income is taxed between the two countries.

Pension Provisions (Article 18)

The treaty provides favorable treatment for Canadian pensions paid to Greek residents:

Key provisions:

• Pensions may be taxed in both countries, but with limitations
• The first $15,000 CAD of annual pension payments is exempt from Canadian withholding
• Amounts above $15,000 CAD: Canada can withhold up to 15% (not the standard 25% non-resident rate)

Practical application for Canadian retirees in Greece:

Tax credit mechanism: Greek residents can claim foreign tax credits for Canadian withholding against their 7% Greek liability, potentially eliminating double taxation entirely.

Other Income Types

Canada-Greece Social Security Agreement

A social security agreement allows totalization of contributions:

• Canadian residence periods count toward Greek pension eligibility
• Greek contribution periods count toward CPP/OAS eligibility
• CPP and OAS remain fully portable to Greece

What Canadian Departure Really Means

Moving to Greece triggers significant Canadian tax implications that must be planned carefully.

Departure Tax (Deemed Disposition)

When you cease Canadian tax residency, Canada taxes unrealized capital gains on most assets as if you sold them:

Subject to departure tax:

• Non-registered investment accounts
• Real estate (excluding principal residence)
• Business interests
• Stock options

Exempt from departure tax:

• Principal residence (with proper designation)
• RRSP, RRIF, TFSA (tax-deferred, not exempt)
• Canadian real estate (remains subject to Canadian tax on actual sale)

Registered Account Implications

RRSP/RRIF:

• Can maintain as non-resident
• Withdrawals subject to 25% non-resident withholding (reduced to 15% under treaty for periodic payments above $15,000)
• No further contributions as non-resident
• Consider withdrawal strategy before departure

TFSA:

• Can maintain existing TFSA
• No further contributions as non-resident
• Gains remain tax-free in Canada
• Greek treatment may vary—consult cross-border specialist

The Departure Tax Calculator Advantage

Understanding your departure tax exposure before leaving Canada is critical. The calculations involve:

• Fair market value of all assets at departure
• Adjusted cost base calculations
• Principal residence exemption optimization
• Provincial tax rates at departure
• Potential security posting for deferred tax

Calculate your estimated Canadian departure tax to understand the true cost of leaving Canada before committing to any destination.

Cost of Living: Region by Region

Greece offers significant cost advantages over Canada, with prices varying substantially by location.

Athens

The capital offers world-class amenities at Southern European prices:

Best for: Cultural attractions, international airport hub, best healthcare access, diverse dining and entertainment.

Thessaloniki

Greece's second city offers excellent value with strong infrastructure:

Best for: University city atmosphere, excellent food scene, access to northern Greece and Balkans, more affordable Golden Visa threshold (€400,000).

Greek Islands

Island living varies dramatically by destination:

Popular islands (Crete, Rhodes, Corfu):

Tourist islands (Mykonos, Santorini):

• Significantly higher costs, especially during summer
• Rental availability limited (Airbnb dominates)
• Golden Visa threshold: €800,000
• Best suited for seasonal visits rather than year-round living

Quieter islands (Naxos, Andros, Syros):

• Lower costs similar to mainland
• Better long-term rental availability
• €400,000 Golden Visa threshold
• More authentic Greek lifestyle

Smaller Cities and Rural Areas

Locations like Larissa, Volos, Patras, and Kalamata offer maximum affordability:

Considerations: Limited English speakers, fewer international amenities, may require Greek language skills for daily life.

Healthcare: Public and Private Options

Greece operates a hybrid healthcare system combining universal public coverage with a robust private sector.

Public Healthcare (ESY)

The National Health System (ESY) provides free or low-cost care to legal residents:

Coverage:

• Hospital care
• Emergency services
• Primary care clinics
• Specialist referrals
• Prescription medications (with co-pays)

Access requirements:

• AMKA number (social security registration)
• Contributions to EFKA (social insurance) if employed
• Golden Visa holders must obtain private insurance initially

Strengths:

• Free emergency care for everyone, regardless of status
• Comprehensive coverage once registered
• WHO ranked Greece 14th globally for healthcare performance

Challenges:

• Long wait times for specialists and non-emergency procedures
• Limited resources in some public facilities post-economic crisis
• English may be limited outside major hospitals
• Geographic disparities between urban and rural areas

Private Healthcare

Most expats maintain private health insurance for faster access and English-speaking staff:

Private hospital networks:

• Hygeia Hospital (Athens)
• Metropolitan Hospital (Athens)
• Mediterraneo Hospital (Athens)
• IASO Hospital (Athens)
• Euromedica (multiple locations)

Typical private costs:

Health Insurance Options

Local Greek plans (HMOs):

• Interamerican, Ethniki, Generali, Allianz Greece
• Cost: €50-€150/month depending on age and coverage
• Network of accredited private facilities
• Good for routine and hospital care

International health insurance:

• Cigna Global, Bupa Global, Allianz Care, AXA
• Cost: €150-€400/month depending on age and coverage
• Worldwide coverage including medical evacuation
• Essential for serious conditions or those spending time outside Greece

Golden Visa requirement: Health insurance covering Greece is mandatory for residency application. Most applicants start with international coverage and transition to local plans after establishing residency.

Healthcare Considerations by Region

For retirees with chronic conditions: Proximity to Athens or Thessaloniki strongly recommended for specialist access.

Choosing Your Location

For Urban Amenities: Athens

Athens offers:

• World-class museums, ancient sites, cultural events
• International airport with direct flights to major cities
• Best medical facilities in Greece
• Diverse international community
• Modern infrastructure and English widely spoken

Trade-offs: Highest costs, traffic congestion, summer heat, €800,000 Golden Visa threshold.

Best neighbourhoods: Kolonaki (upscale), Pangrati (local feel), Kifisia (suburban), Glyfada (coastal), Marousi (modern).

For Value and Culture: Thessaloniki

Greece's second city provides:

• Vibrant food and nightlife scene
• University city energy with young population
• Easier pace than Athens
• Access to northern Greece, Macedonia, and Balkans
• €400,000 Golden Visa threshold

Trade-offs: Colder winters than southern Greece, fewer international flights, smaller expat community.

For Island Life: Crete

Greece's largest island offers:

• Year-round population and services
• Good healthcare facilities (Heraklion, Chania)
• Diverse landscapes from beaches to mountains
• Strong local culture and cuisine
• €400,000 Golden Visa threshold

Trade-offs: Requires flights or long ferries to mainland, limited specialist medical care for rare conditions.

For Authentic Greece: Peloponnese

The southern mainland peninsula provides:

• Ancient sites (Olympia, Mycenae, Epidaurus)
• Beautiful coastline and beaches
• Lower tourist density than islands
• Easy access to Athens
• €400,000 Golden Visa threshold

Best areas: Nafplio, Kalamata, Monemvasia, coastal villages.

For Budget Living: Northern Greece

Regions like Epirus, Thessaly, and Macedonia offer:

• Lowest costs in mainland Greece
• Mountain landscapes and traditional villages
• Authentic Greek culture with few tourists
• €400,000 Golden Visa threshold

Trade-offs: Limited English speakers, colder winters, may require Greek language skills.

Practical Considerations

Banking

Opening a Greek bank account requires:

• Valid passport
• Greek tax number (AFM)
• Proof of address in Greece
• Initial deposit (varies by bank)

Major banks: National Bank of Greece, Piraeus Bank, Alpha Bank, Eurobank

Practical tip: Maintain Canadian banking for international transfers. Use Wise or similar services for currency conversion. Greek banks can be bureaucratic—allow extra time for account opening.

Property Ownership

Good news: No restrictions on foreign property ownership in Greece (unlike some countries).

Considerations:

• Property transfer tax: 3.09% of cadastral value
• Notary fees: 1-2% of purchase price
• Legal fees: 1-2% of purchase price
• Annual property tax (ENFIA): Varies by property value and location
• Building maintenance fees for apartments

Language

Greek is the official language, and alphabet differences create an additional learning curve. However:

• English widely spoken in Athens, tourist areas, and among younger Greeks
• Many doctors trained in UK or US speak excellent English
• Government offices and bureaucracy primarily in Greek
• Greek language proficiency required for citizenship (after 7 years)

Recommendation: Basic Greek greatly improves daily life and integration. Consider language courses before or after arrival.

Transportation

Public transport: Excellent in Athens (metro, buses, trams). Thessaloniki's metro opened in 2024. Other cities rely on buses.

Ferries: Essential for island travel. Prices range €30-€70 for popular routes. Permanent island residents receive 50% rebates.

Driving: Valid Canadian license accepted for 6 months. International Driving Permit recommended. Greek drivers can be aggressive—adjust expectations.

Flights: Domestic flights connect Athens to major islands. Budget carriers (Aegean, Sky Express) offer reasonable fares.

Is Greece Right for You?

Greece Makes Sense If You:

• Want the 7% flat tax benefit on foreign pension income
• Can make a significant investment (€250,000-€800,000) for Golden Visa
• Appreciate Mediterranean climate and lifestyle
• Value EU membership and Schengen travel access
• Are comfortable with some bureaucratic complexity
• Can spend 183+ days annually in Greece (for tax regime)
• Have adequate pension/investment income (not seeking employment)

Greece May Not Be Ideal If You:

• Cannot meet Golden Visa investment thresholds
• Need to work as an employee
• Require immediate English-speaking environment everywhere
• Have serious chronic conditions requiring specialist care (unless near Athens)
• Prefer highly efficient government services
• Cannot commit to 183+ days annually in Greece
• Are uncomfortable with periodic bureaucratic challenges

Your Next Steps

Moving to Greece requires careful coordination of investment, tax planning, and lifestyle considerations.

Planning Sequence

1. Calculate your departure tax exposure — Understand what leaving Canada actually costs before committing
2. Evaluate Golden Visa options — Determine which investment threshold and type suits your situation
3. Model your tax position — Compare Canadian taxes vs. Greek 7% regime including treaty benefits
4. Visit Greece — Explore potential locations for at least 2-3 weeks
5. Engage professionals — Greek immigration lawyer, Canadian cross-border tax specialist, Greek accountant
6. Plan registered accounts — Determine RRSP/RRIF withdrawal strategy before departure
7. Arrange health coverage — Secure qualifying insurance for Golden Visa application
8. Execute investment — Complete property purchase or alternative investment
9. Apply for Golden Visa — Submit documentation and await approval
10. Apply for 7% tax regime — File by March 31 of your first full tax year in Greece

Resources

Greek Government:

• Enterprise Greece (Golden Visa)
• Greek Immigration Service
• Independent Authority for Public Revenue (Tax)

Canadian Government:

• Canada-Greece Tax Treaty
• Travel Advisory - Greece

The Bottom Line

Greece offers Canadian retirees a rare combination: genuine tax advantages (7% flat rate for 15 years), EU membership benefits, Mediterranean lifestyle, and costs significantly below Canada. The Golden Visa provides a clear path to residency for those who can make the required investment.

The trade-offs are real: bureaucratic processes can frustrate, the language barrier exists outside tourist areas, and healthcare—while good—requires proximity to major cities for serious conditions. The investment threshold, particularly for Athens and popular islands (€800,000), puts the Golden Visa out of reach for many.

For Canadian retirees with solid pension income and investable assets, however, Greece delivers exceptional value. The combination of reduced taxation, lower living costs, and access to 2,500 years of history and 6,000 islands creates a retirement proposition that's hard to match elsewhere in Europe.

Just make sure you understand what leaving Canada actually costs before booking that Mediterranean adventure.

Calculate your Canadian departure tax and understand the full financial picture of your move abroad.

This guide provides general information for educational purposes. Tax laws, visa requirements, and investment thresholds change frequently. Consult qualified Canadian tax professionals and Greek immigration specialists for advice specific to your situation.