Relocation to Greece for pensioners: how comfortable and profitable is moving to the country?

Релокация в Грецию для пенсионеров: насколько комфортен и выгоден переезд в страну?

Living in a place that combines the availability of services and a high quality of life is a dream that most people strive for, especially with retirement approaching. Moving abroad in the golden years opens up tempting prospects: affordable housing, high-quality healthcare, significant tax benefits, and the opportunity to enjoy the best cities and beaches in the world.

When the decision to move is made, it remains to choose a country to live abroad. The choice is huge, and each destination offers its own unique benefits for retirees. When planning relocation, it is important to take into account many factors: climate, economic development of the country, transport accessibility, cost of living, quality of medical services, cultural and social characteristics. Equally important are the issues of visa and tax regime and the possibility of legalization in a new place.

For several decades, Greece has remained one of the most popular places to live after retirement for residents of Northern Europe and the United States. The attractiveness of this country for the older generation seems undeniable: the Mediterranean climate, numerous sunny days, a leisurely pace of life, natural and delicious food, as well as history and culture. We decided to look into the facts and figures in more detail to find out how profitable it is to move to Greece.

The content of the article

  1. Tax regime and benefits for pensioners
  2. Tax regime for wealthy individuals (Greek HNWI / Lump-Sum tax regime)
  3. Alternative tax regime for pensioners wishing to move to Greece (Alternative tax regime for retirees)
  4. Transport accessibility relative to other countries of the world
  5. The visa regime and the possibility of obtaining permanent residence
  6. Climate, seasonality and specificity of the natural landscape
  7. The economic development of the country and the cost of living
  8. Accessibility and quality of medical services
  9. The variety and quality of services, socio-cultural and entertainment infrastructure

Tax regime and benefits for pensioners

Despite the fact that basic taxes in Greece are calculated on a progressive scale (for details, see below), it may be beneficial to become a tax resident of the country.

Thus, the state provides preferential conditions for wealthy individuals with high global income (HNWI), as well as for pensioners who intend to relocate to Greece.  

Tax regime for wealthy individuals (Greek HNWI / Lump-Sum tax regime)

The main benefit is the annual payment of a fixed amount of tax on global income instead of calculating income taxes according to general rules. 

The amount of the annual fixed tax is 100 thousand euros for the main applicant and 20 thousand euros for each member of the applicant’s family.

An example of the benefit can be seen when comparing with progressive rates on certain types of income:

  • capital gains from the sale of securities — a potential 15% tax rate;
  • dividends — instead of 5% tax at the standard progressive rate;
  • interest — instead of 15% tax;
  • salary / pension / income from entrepreneurial activity — instead of 9-44% tax;
  • rental income — instead of 15-45% tax;
  • foreign inheritance — instead of tax at a rate of up to 40%, depending on the degree of kinship and the estimated value of the inheritance.

The regime can be used for up to 15 years. According to the regulations, taxpayers are not required to declare foreign income in their Greek tax return, and are also exempt from the requirement to justify the source of origin of funds that they import into Greece. At the same time, a foreign tax credit becomes unavailable to the taxpayer. This is a tax benefit provided to residents of the country to reduce their tax obligations by an amount equivalent to taxes paid abroad. This measure avoids double taxation of income earned abroad.

The main requirement for compliance with the program:The applicant (and his family members) must not have been a tax resident of Greece for 7 of the last 8 years and must invest at least 500 thousand euros in the country’s economy for 3 years before changing tax residency. You can invest in real estate (land, buildings, development projects), stocks and government bonds, and you can also get a residence permit for investing in Greek real estate. The application fee is 10 thousand euros, which includes the preparation of an application, translation and certification of relevant documents, as well as their submission to the Greek tax authorities. The application process is the same for both EU and non-EU citizens, however, depending on the level of income/expenses, additional compliance procedures may be applied.

Alternative tax regime for pensioners wishing to move to Greece (Alternative tax regime for retirees)

The main benefit is to qualify for a reduced income tax of 7% on pensions from foreign sources and any other income from foreign sources.  

An example of a benefit in comparison with the usual tax regime in Greece:

  • income from income received is not in Greek pensions — tax rate up to 44%;
  • income from income not received in Greece interest — 15% tax;
  • income from income not received in The amount of dividends is 5% tax under normal conditions;
  • if there is income from rental housing in In Greece, they are subject to standard Greek taxation — 15-45%, depending on income.

The validity period of the regime is up to 15 years. It is important to note that foreign assets are subject to inheritance and gift tax. The tax rates are 0-40%, depending on the proximity of kinship and the value of the property received. At the same time, real estate located outside Greece is exempt from the Greek inheritance tax.

Also, a certain part of income received from foreign sources may be taxed in the country of residence, depending on whether the resident will have limited or unlimited tax obligations in the former country of residence. For each country, it is necessary to look at the terms of the Double Taxation Avoidance Agreement (DTT).

The main requirement for compliance with the program: The applicant must document receipt of a pension in another country from non-Greek sources and have tax residence outside Greece for 5 of the last 6 years. But he can transfer his residency only from a country with which Greece has an agreement on administrative cooperation in tax matters. Currently, there are 57 countries on this list, including the EU, the United Kingdom, the United States, Canada, the United Arab Emirates, Russia, Armenia, Azerbaijan, Ukraine, Georgia, Uzbekistan and others. It should be noted here that in many countries, the rights to tax pensions belong to the state of tax residence, so you need to look at the specifics of each country.

Among other things, it is important to pay attention to the status of residence in Greece: full relocation or temporary. Depending on this, the tax status in the current country of residence will change and certain tax obligations will apply. Thus, a German relocator who permanently renounces his German residency is obliged to pay an exit tax, and while maintaining limited tax liability in Germany, income earned in Germany will be taxed in this country. At the same time, part of the tax can be refunded through a foreign tax credit provided against the tax paid in the country of residence — Greece.

In addition, Greece has a special tax regime for executives and entrepreneurs who intend to relocate and work in this country.

Among the key taxes of Greece, it should be noted:

  1. Income tax, it is calculated at a progressive rate from 9% (for income up to 10,000 euros per year) to 44% (for income from 40,000 euros).
  2. The tax on the purchase/sale of real estate at a rate of 3.09% for primary and secondary housing facilities in which a construction permit was issued before 2006, and 24% for primary housing facilities in which construction permits were issued after 2006.
  3. When renting out housing, individuals pay from 15% (with an income of less than 12,000 euros per year) to 45% tax (with an income of more than 35,000 euros per year).
  4. Consumption tax It includes VAT, stamp duty and taxes on various transactions (for example, car registration or payment of duty). VAT rate in Greece has 24%, which is the highest figure in the European Union. At the same time, there are opportunities to use reduced VAT: for example, medical services and some travel companies use a preferential rate of 13%, and on the islands of Lesbos, Samos, Kos, Leros and Chios, the VAT rate is 17%.
  5. Taxes on the ownership and use of real estate They are paid once a year and include several taxes, the key of which are: the annual tax paid by each property owner in Greece, the main part of which is from 2-13 € per square meter. Individuals pay tax only for objects with a cadastral value of more than 250,000 euros at a rate of 0.15–1.15%, based on the value of the property. For legal entities, the rate of the additional part is fixed and amounts to 0.55% of the cadastral value of the property. The annual municipal property tax is 0.025–0.035%, depending on the location of the property. A special property tax is calculated depending on the cadastral value of the object and is 15% of it.
  6. Inheritance and gift tax is paid in respect of inherited movable and immovable objects and is calculated at a rate from 0% to 40%.

In summary, Greece is not a country with the most comfortable tax system. However, it is beneficial for people with high global income to become a tax resident of the country under the Tax Regime for wealthy individuals and an alternative tax regime for pensioners. At the same time, for each specific case and country, you should familiarize yourself with all the nuances with the help of a tax consultant.

Transport accessibility relative to other countries of the world

Greece’s geographically advantageous position provides ease of movement both within Europe and quick access to the world’s main hubs. One of the key features of the country is the presence of several international airports.

You can fly abroad by direct flight from almost anywhere in Greece: international airports are located in Athens, Crete, the Ionian Islands, the Northern and Southern Aegean Islands, etc.  

Passenger traffic at Greek airports in 2023 reached a record high of 72.6 million people (+14% compared to 2022 and +13% compared to 2019). About 70% is accounted for by international flights. Flights within Europe take from 2.5 hours, you can get to the UK in 4 hours, to the Middle East — from 5 hours, to the USA and Direct flights reach Canada in 10-11 hours. Now in Greece does not have direct communication with Russia, but access is provided through third countries: Turkey, Serbia and others.

An undeniable advantage is unhindered travel within the borders of the EU, and visa-free entry is possible in 171 countries.

The visa regime and the possibility of obtaining permanent residence

The most important criterion for moving to a new place of residence is the possibility and ease of legalization.

Greece has one of the most affordable residence permit programs in Europe, which subsequently allows you to obtain permanent residence while maintaining dual citizenship. 

Duration of stay in Greece on a Schengen type visa C is limited to a visa corridor of 90 days. If you wish to stay in the country for more than 3 months, you need a National visa D. As a rule, it is issued for 1 year with the right to extend and obtain a residence permit. Citizens of non-EU countries can get a work visa, a digital nomad visa, etc.

The following programs are available for pensioners who intend to move to Greece:

  • Residence permit for financially independent;
  • Residence permit for real estate investments.  

1) Residence permit for financially independent — this is a residence permit for those who have at least 2 thousand euros per month in a bank account in Greece for the main applicant, +20% of the amount for the spouse, +15% for each child under 18 years old, and does not conduct economic activities in Greece. It is in this category that pensioners with a high income level belong.

Basic requirements:

  • availability of a foreign source of income: from business, dividends on shares and securities, deductions from a foreign pension fund;
  • income from renting out real estate or placing the required amount in a Greek bank account (from € 24,000 for one applicant) is suitable for confirming funds;
  • availability of purchased or rented housing in Greece;
  • accommodation in Greece from 183 days a year.

Such a residence permit is valid for 3 years upon confirmation of income retention, then it can be extended for another 3 years. It is important to note here that the acceptance of documents from citizens of Russia and Belarus has been temporarily suspended. But you can apply for it if you have a second citizenship.

2) Residence permit for real estate investments — the main booster of foreign investment in real estate in Greece. So, in 2023, they reached a record 2.13 billion euros (+8% by 2022 and +82% by 2021).

Greece remains one of the few EU countries where you can get a “golden visa”, or residence permit for real estate investments, from 250 thousand euros. However, since March 31, 2024, Greece has raised the threshold for entry into the program for some regions, setting a transitional period of participation on the old terms until August 31, 2024.  

Such a residence permit is valid for 5 years and can be extended indefinitely — provided that investments in real estate are preserved (real estate should not be sold or divided into parts). After 5 years, you can get permanent residence, and after another 2 years, you can apply for citizenship.

The main requirement is the purchase of real estate in the amount of:

  • from 800,000 € for the regions of Attica, Thessaloniki, Mykonos, Santorini and islands with a population of 3,100 or more (the current threshold of 500,000 € is valid until the end of August 2024);
  • from 400,000 € for all other regions (the current threshold of 250,000 € is valid until the end of August 2024);
  • from € 250,000 for investments aimed at the renovation or reconstruction of architectural monuments or their conversion into residential premises.

The applicant can buy up to two objects in one building. These can be apartments, villas and other residential properties, commercial real estate, for example, office space.

Year

Number of “golden visas” issued

2019

3972

2020

1413

2021

1811

2022

3703

2023

1665

1st quarter 2024

339

In the last year, there has been a trend towards a decrease in the issuance of visas due to stricter requirements when considering applications and against the background of an increase in the minimum amount for investments. So, in 2023, 8,351 applications were submitted, but only 1,665 were approved. At the same time, by raising the investment threshold, Greece is on par with other EU countries offering residence permits for real estate investments: for example, the program of “golden visas” of Spain, Hungary and Portugal requires investments of 500 thousand euros.

Climate, seasonality and specificity of the natural landscape

One of the best Mediterranean climate in the world, many sunny days a year, a large number of islands and proximity to the sea are the key advantages of this country.

Greece is known for its diverse landscapes and living opportunities. More than 2,000 islands, of which only 227 are inhabited, provide an incredible variety of choices. Each island offers its own unique experience: from historical attractions and natural beauties to urban life in the style of slow living; from luxury villas to affordable cozy houses.

Релокация в Грецию для пенсионеров: насколько комфортен и выгоден переезд в страну?

This is a unique country with mountainous terrain, 80% of its territory is covered by mountains, while no part of Greece is located more than 86 miles from the sea, which makes it possible to enjoy both the views of mountain peaks and proximity to water. The variety of microclimates, depending on the geographical location, adds uniqueness to each region.

The north of the country is located in a temperate climate zone: pine and mixed forests with picturesque landscapes and fresh air prevail here. The southern part of Greece is located within a tropical zone dominated by Mediterranean evergreen vegetation. Alpine flora can be found in the mountains.

Greece is also known for its clean beaches, many of which are marked with the blue flag of the European Union, which indicates a high level of ecology and clean water. The beaches on the islands of Crete, Rhodes, Corfu, as well as on the peninsulas of Halkidiki and Peloponnese received the most awards.

The economic development of the country and the cost of living

In 2022, Greece emerged from the increased economic control of creditors, which it had been under since the debt crisis of 2010. Then the Greek authorities turned to the European Union for economic assistance because of the risk of default. The Bloc provided three aid packages to the country in 2012 and 2015. During this time, the country’s economy has shrunk by 25%.

Now Greece has reached a clear development horizon, and we are witnessing rapid economic growth in the country

  • The Economist ranked Greece first in the ranking of the most successful economies in 2023;
  • GDP growth was +2% in 2023 (vs +0.4%, the EU average), the forecast of the International Monetary Fund is +2%, and the European Commission is +2.2% in 2024;
  • inflation is +4.2% in 2023, the IMF forecast is +2.7% in 2024.

The economy is supported by domestic demand, investment and openness of the country, as well as the restoration of the tourist flow. In 2019, Greece issued 10-year bonds for the first time since 2010, the demand for which exceeded 11.8 billion euros. In March 2021, 30-year bonds were issued — this is how Greece regained access to inexpensive external financing.

The volume of foreign direct investment in the country shows rapid growth. It grew to $6.7 billion on average over three years (2021-2023), by 62% compared to the three-year period 2017-2019, and 47% of all foreign investments in Greece in 2023 were provided by the real estate market.

Релокация в Грецию для пенсионеров: насколько комфортен и выгоден переезд в страну?

The cost of real estate depends on the type of property and the region, but in general Greece is still one of the most affordable countries within the European Union. The cost per square meter in the center of Athens, according to the Numbeo website, is 2000-5000 €, in Madrid — 3300-7000 €, in Lisbon — 4000-9000 €. 

According to the Bank of Greece, the fall in real estate prices slowed in 2017, and in subsequent years the real estate market grew despite the pandemic. The price increase in 2022 was +11.9%, and in 2023 they increased by another +13.8%. The rise is not so much due to inflation and rising construction costs,

how much is due to three factors: demand from foreign investors, the restoration of tourism, domestic demand against the background of economic recovery and the realization of deferred demand.

Релокация в Грецию для пенсионеров: насколько комфортен и выгоден переезд в страну?

Prices per m2 by district in April-May 2024 according to the Numbeo website:

Athens

2000-5000 € depending on the type and age of the property

Thessaloniki

1400–4000 €

Crete

2300–4200 €

Rhodes

2000–3000 €

Corfu

1000–3500 €

Corinth

800–1000 €

Real estate in Greece is sold in full ownership together with the land plot.

The cost of renting an apartment depends on many factors, including location, quality of real estate, area, amenities and access to infrastructure.

Average prices according to the Numbeo website:

  • 1—bedroom apartment in the center – 350-800 € per month;
  • 3—bedroom apartment in the center – 550-1500 € per month.

The cost of living in Greece is lower than in many Western European countries: food, accommodation, transport, real estate maintenance and entertainment are much more affordable here. So, the cost of living in Greece has an average of 16.3% less than the Netherlands. It is important to understand that the cost of living in Athens and Thessaloniki is more expensive than in other regions. According to the Numbeo website and the opinion of local residents, for a comfortable life it is necessary to have 800-2700 euros per month (the calculation does not take into account the cost of rent).

The cost of maintaining the property is 160-475 euros per month, transportation is 27-50 euros per month for a subscription, visiting restaurants will cost from 10 to 80 euros, a subscription to a sports club — from 25 euros. All prices for Greek cities can be viewed on the Numbeo website.

Accessibility and quality of medical services

A distinctive feature of Greece is the Mediterranean diet, which is sewn into the DNA of the place, and treatment here is carried out not with medicines, but with healthy food, a mild climate and lifestyle. For example, the island of Ikaria in The Aegean Sea is part of the “blue zone” — unique places on the planet where the largest number of centenarians are registered, and the Icarian lifestyle extends to most of Greece.

At the same time, medical services are available and can be provided free of charge.

Medical insurance includes three types of insurance.

Emergency medical care is provided to everyone without payment, regardless of the status of residence.

Public health insurance is provided free of charge or at a low price to all residents who are eligible. The resident has the right if:

  • Works for a Greek company;
  • pays contributions to the Social Insurance Institute as a self-employed or entrepreneur;
  • is a citizen The EU can claim medical benefits if it has a European Health Card. It gives the bearer the right to state health insurance for a limited period of time.

Pensioners from EU countries who receive a pension in their country and plan to move to Greece are also eligible for state medical benefits.

Private health insurance must be purchased if You are a representative of a non-EU country and do not pay contributions to the Greek social security system. For example, you came from the USA to retire in Greece.

Private medical insurance is a mandatory requirement for obtaining a residence permit. The cost of policies varies depending on age, existing medical conditions, medical examination and blood test, as well as the selected insurance coverage.  

There are two types of private health insurance in Greece:

  1. Medical insurance, which gives access to all hospitals in Greece (you need to apply for this insurance before reaching the age of 65, then it will be extended regardless of age).
  2. Medical insurance that gives access to all hospitals/clinics in the selected network (you need to apply for this insurance before the age of 80, and it will be extended regardless of age).

Private insurance provides access to better services. The country has a wide range of programs. A typical plan offers coverage of 80-85% of medical treatment and services within a private network. The minimum coverage required to apply for a visa/residence permit is the Residence permit insurance option. Its cost is 150 euros per year, and it needs to be purchased anew every year. It covers 10,000 euros per year for hospitalization, 1,500 euros per year for outpatient treatment and 15,000 euros for accidents.

At the same time, prices for medical services are much cheaper than in other European countries. So, a visit to a general practitioner in a public clinic will cost 0-10 euros, in a private one — 40-150 euros, depending on the specialization. For example, a visit to a general practitioner can cost about 35 euros, to a specialist — 50 euros; brushing teeth will cost 40 euros, a vision check — 60 euros.

The variety and quality of services, socio-cultural and entertainment infrastructure

Релокация в Грецию для пенсионеров: насколько комфортен и выгоден переезд в страну?

Greece is famous for its outdoor living — outdoor living. Outdoor cafes and restaurants offering fresh seafood and traditional dishes create a cozy atmosphere. Regardless of the time of year, the Greek outdoor lifestyle provides a sense of freedom and connection with nature.

Greece attracts people from all over the world, creating an amazing mix of cultures and nationalities. In 2023, 10.46 million people lived here, an annual increase of 1-2%. About 90% of the inhabitants are ethnic Greeks. At the same time, in Greece has a huge number of expat communities. Thus, the Russian diaspora numbers about 400 thousand people. Expat communities are easy to find, as are many cultural and recreational activities that you can participate in with the locals. There are many opportunities to learn the language in Greece, from private lessons to evening school classes. This not only helps enrich culture and promotes learning, but also increases respect and trust from Greek friends and neighbors.

For pensioners in Greece, there are many social programs and organizations that help to lead an active and busy lifestyle. One of these, KAPI, organizes leisure activities for people over 60 years old. Involvement in the organization allows you to fill your life with a variety of activities: from hiking and live music concerts to theatrical productions and poetry evenings, from Greek dance lessons and art exhibitions to volunteer work. And the friendliness and hospitality of the Greeks help you easily adapt to life in an unfamiliar place.  

In summary, moving to Greece opens up new prospects and opportunities for pensioners: significant tax benefits, affordable housing while maintaining the quality of life, medical services, the opportunity to enjoy the Mediterranean climate, a variety of landscapes and pristine beaches. Despite the fact that adaptation to life in Greece can be difficult and sometimes associated with bureaucratic difficulties, the country really attracts with the quality of life. At the same time, many older people choose Greece for relocation due to the possibility of obtaining a “golden visa” through the purchase of real estate, which is a significant advantage compared to large business investments.

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