How to Retire in the Mediterranean and Pay Only 7% Tax in Greece on a Foreign Pension

For many people, retirement is when the tax burden suddenly becomes much more noticeable. Pension income often faces high tax rates in the country where you live, while the cost of living rises faster than you’d like. Against this backdrop, Greece has been promoting a clear and attractive option in recent years: relocating in compliance with the requirements and paying a fixed 7% tax on foreign income.

The idea is straightforward: obtain tax residency in Greece, complete a short list of conditions, and the Greek 7% rate applies to foreign income—including pensions. The rate is fixed for 15 years, with no progressive brackets and no extra surcharges. But behind the “nice number” there are important details.

The difference between a setup that truly works and a situation where you lose a year—or end up with a higher tax bill—depends on the specifics: documentation, the sequence of steps, the structure of your income, and how your obligations to another country are handled.

How the 7% in Greece works

The regime for foreign pensioners has been available in Greece since 2020. If you meet the requirements, you pay 7% per year on your foreign-source income. Payment is made in a single installment—typically at the end of July.

Standard Greek tax rates on income can exceed 40%. So, when set up correctly, the savings on overseas income can be substantial.

For example, with a foreign pension of $100,000, the Greek tax would be about $7,000. No additional charges “on top” of this regime rate apply.

Eligibility for the 7% rate is determined by three key conditions:

• During the previous 5 years out of the last 6, you must not have been a Greek tax resident.
• The income must be related to foreign pension benefits.
• Your move and your income source must meet the requirements under tax information exchange rules: Greece applies the regime when agreements are in place—for example, between Greece and the United States, and also between Greece and the United Kingdom.

After the conditions are met, the 7% rate may also apply to other categories of foreign income—for example, dividends or foreign rental income. However, the assessment can be handled on a case-by-case basis.

There is also a “substance” presence test: you must be in Greece more than 183 days in the year. In other words, the move must be real—otherwise the purpose of the regime is lost.

What “pay just 7%” doesn’t tell you

It’s important to understand that not every pension automatically qualifies. The wording in the rules is geared toward pensions connected to past employment. For U.S. citizens in particular, a key question is how savings held in structures such as IRA or 401(k) are treated—and how you prove the source of funds and the type of documentation you provide.

But there is an even more fundamental issue: U.S. tax obligations. Even if you relocate to Greece, the United States continues to tax its citizens regardless of where they live. That means the Greek 7% covers Greek taxation, but it does not eliminate U.S. taxation.

In this situation, international tax tools can help: a tax treaty between the U.S. and Greece, and the foreign tax credit mechanism (credit for taxes paid). Still, the final “amount due” depends on how you structure your paperwork, how you file returns, and how the treaty provisions are interpreted in your specific case.

In practice, the problem is solvable—but it’s not a “do it yourself” project. People who achieve the right outcome coordinate everything in sync: tax residency, a residence permit, and the correct filing of tax returns—in the right sequence.

First: secure the right to live legally in Greece

If you’re an EU citizen, you can generally move with fewer complications: freedom of movement simplifies the process. For other categories, you need a residence permit—and it must be obtained before applying for the tax regime.

The type of permit depends on your situation. For retirees with stable income, a common route is a permit for financially independent persons (Financially Independent Person). Usually, this requires proof of regular income from sources outside Greece and private health insurance. The emphasis is on income rather than buying property.

There’s also the well-known Golden Visa option. But since it is built around investment thresholds, it fits a different category of applicants.

Here, the order of steps is critical: the residence permit must be ready before you submit the tax application. If you do things in the wrong order, you can face delays and lose a tax period—and that often costs more than it seems.

Where to live: not just islands

Once the paperwork is prepared, the main question remains: where exactly do you want to spend the next 15 years.

The most obvious choices are popular, highly seasonal locations—especially islands that come alive in August. But there are calmer areas closer to Athens as well.

For instance, on the west coast of Evia (Euboea)—Greece’s second-largest island—you can reach the area by car, not only by sea. One of the quiet coastal spots is Skroponeria, where you can enjoy views over the peaceful waters of the Evian Gulf.

It’s about an hour and a half by car to Athens: there’s an international airport and convenient flights. At the same time, Skroponeria feels much more remote—pine-covered hills, clear water, and evenings when the sea looks almost silvery.

There are plenty of day trips nearby. Within reach you’ll find Delphi, associated with the ancient oracle, and Aráchova, a mountain town that becomes one of the most fashionable winter ski destinations. Closer to home is Chalkida, a city known for tidal currents that change direction every few hours. And the Chiliadou beach stays quiet—especially for those who value peace and quiet.

Levante Villas in Skroponeria

Skroponeria is where OIKOS Property Developments builds Levante Villas: a small project of five villas.

Each villa covers about 130 m² across two levels. The lower level includes a private pool, and in front of the house you get views toward the Evian Gulf. The project is intentionally designed in a “quiet” style, without excessive showiness.

The architecture is modern and minimal: light volumes, lots of glass, and wooden pergolas on the terraces. Inside, the finish is high-quality without loud “luxury” statements—marble in the bathrooms, a fireplace in the living room, built-in wardrobes, a designer kitchen, and a small office for those who aren’t ready to fully stop working yet.

Three bedrooms provide space for family and friends, and the sea is roughly 100 meters away via a path down the slope.

The concept behind Levante Villas is comfort for people who don’t want noise. Five villas on a quiet hillside—each with sea views.

Why now is a good time to buy

Today, Greece is a different country compared to the period when the economy often made negative headlines. Growth over the past few years has been faster than the eurozone average—around 2% per year. Unemployment has fallen from roughly 26% to below 9%, and the country’s credit rating has returned to investment grade levels.

Real estate reflects this momentum: housing prices have been rising for several years—estimated at 7–8% in 2025 after higher growth rates earlier in the decade. At the same time, new construction has slowed, meaning quality properties in in-demand areas remain scarce.

Foreign buyers have been present in the market for a long time and visibly influence sales in the most popular locations. Interest in properties in Greece isn’t driven only by Greeks.

A company that helps with the “rest”

OIKOS Property Developments has worked in Greek real estate and immigration for more than 15 years. For a relocation scenario, this combination is especially valuable: the company doesn’t just build homes—it also guides the related process, from cross-border purchases to obtaining a residence permit.

The team also coordinates contacts with the tax and legal specialists an international buyer typically needs. For people relocating for the long term, this support becomes even more significant: many developers stop at handing over the keys, and then you’re on your own.

OIKOS is based in Athens and mainly works with international buyers. Newcomers often face typical challenges—paperwork, timelines, bureaucratic details—that can delay the move. When the tax-favorable regime, residence permit, and property purchase all need to “line up,” experience and correct coordination bring real value.

Where to start

The tax advantage is real, and the villas are real. But the hardest part is putting everything into one coherent life plan: building the right sequence of steps and accounting for the nuances of your situation.

If you’re considering a move under this kind of scenario, OIKOS Property Developments offers a consultation where the tax regime, residence permit process, and property purchase are considered together—before any commitments. To get started, contact the OIKOS Property Developments team via the official website.

If you’re considering moving to Greece and want to accurately forecast the tax burden on foreign income and retirement, it’s crucial to rely on a precise legal setup—not generic promises. Our team at Digital Nomad helps you evaluate which regime and documentation path best fits your case, so you can optimize taxes legally and plan long-term life in Europe with confidence.

Our Telegram channel about various types of Greek residence permits, digital nomad programs, and the Greek Golden Visa: @digitalnomadgr