Only 7% tax for German pensioners in Greece: How the tax benefit works

More and more German pensioners are dreaming of spending their retirement in the sun – and Greece offers not only Mediterranean flair, but also tangible tax advantages. Since 2020, the country has been attracting foreign retirees with a flat tax rate of only 7% who relocate their residence to Greece.

In this article, I explain who can benefit from the special rule, what conditions must be met, and how the application process works – based on official sources from the Greek tax authority AADE.

✅ What is behind the 7% rule for pensioners in Greece?

Since the introduction of Law 4714/2020, a special taxation for pensioners has been included in the Greek income tax law (Art. 5B of Law 4172/2013). This allows foreign pension payments to be taxed at a flat rate of only 7% – and for a period of up to 15 years.

📌 Requirements for the 7% tax regulation (as of 2024)

📝 How do you apply for the tax benefit?

  1. Relocation of residence to Greece with valid registration and proof of residence.
  2. Application for alternative taxation according to Article 5B to the Greek tax office for foreigners (AADE).
  3. Application deadline: March 31 of the current tax year.
  4. After approval: annual payment of 7% on total pension income from abroad (e.g. German pension, company pension, private pension).

📄 Official source and legal text

The special regulation is anchored in the Greek Income Tax Act Art. 5B. The Greek tax authority AADE provides an official information document in English:

🔗 AADE – Tax Incentives: Articles 5A, 5B & 5C of Law 4172/2013 (PDF)

💡 Advantages for German pensioners

  • Significantly lower tax burden compared to Germany

  • Stable and long-term plannable model (up to 15 years)

  • No double taxation thanks to agreement between Germany and Greece

  • Quality of life, climate and health care very attractive in many regions

  • attractive

📌 Conclusion: Is the 7% rule worthwhile for German pensioners in Greece?

Yes – for many retirees, the model is highly attractive. If you receive pension income in Germany, move your tax residence to Greece and meet the deadlines, you will benefit from a greatly reduced tax burden and can enjoy your retirement under the sun – with financial advantages.