Regime Rate
50%
Under the 50% Exemption New Re
Standard Top Rate
44%
without this regime
Duration
7 yrs
Maximum 7 years from application
Target Profile
Income Exemption
Greece
Tax Savings Illustration
Example: €150,000 Annual Gross Income
Under 50% Exemption New Re
€37 500
Standard Rate
€46 200
Annual Saving
+€8 700
Eligibility Requirements
Who qualifies?
- Individuals who were not Greek residents in prior 5 of 6 years and transfer residency to Greece
- must work for Greek company or Greek permanent establishment
How the Regime Works
Full details
50% exemption on employment and business income for 7 years from year of arrival. No minimum salary requirement.
Regime vs Standard Rates in Greece
| Tax Type | Standard Rate | Under This Regime | Saving |
|---|---|---|---|
| Income Tax (top rate) | 44% | ~22.0% effective | -22.0pp |
Frequently Asked Questions
What is the 50% Exemption New Residents in Greece?
The 50% Income Tax Exemption for New Tax Residents (Art. 5C) is a special tax regime in Greece that provides 50% flat rate to qualifying individuals or entities. 50% exemption on employment and business income for 7 years from year of arrival. No minimum salary requirement. Legal basis: Art. 5C Income Tax Code (ITC); L.4764/2020.
Who is eligible for the 50% Exemption New Residents?
Eligibility for the 50% Exemption New Residents is limited to: Individuals who were not Greek residents in prior 5 of 6 years and transfer residency to Greece; must work for Greek company or Greek permanent establishment. Applicants typically must not have been Greece tax residents during a specified prior period. Always verify current conditions at the source: Art. 5C Income Tax Code (ITC); L.4764/2020.
How much tax do you pay under the 50% Exemption New Residents?
The 50% Exemption New Residents exempts a significant portion of your qualifying income from Greece income tax. On a gross income of €150,000, this typically results in substantially lower tax compared to the standard 44% top rate.
How long does the 50% Exemption New Residents last?
The 50% Exemption New Residents lasts for 7 years from the year you first qualify. After this period, standard Greece tax rates apply unless you qualify for another regime or change tax residency.
How do I apply for the 50% Exemption New Residents?
Application procedures for the 50% Exemption New Residents are set out in Art. 5C Income Tax Code (ITC); L.4764/2020. You typically need to file a formal application with Greece's tax authority after establishing residency. Consult a local tax advisor for guidance.
Other Special Regimes to Compare
Disclaimer: This information is for general guidance only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making residency or tax planning decisions.