US Taxes for Americans Living in Greece – A Guide for Expats

Thinking of moving to Greece or already soaking up the sun in Athens? Don’t forget about your US taxes. The IRS taxes based on citizenship, not residency, which means Americans living in Greece must file a US tax return every year.

In this article, we break down what US expats in Greece need to know. Whether you’re retired, working remotely, or running a business, find out how to avoid double taxation and stay compliant while enjoying life in the cradle of Western Civilization.

Table of Contents

• Expats in Greece still have to file a US tax return
• Tax deadlines and extensions for Americans abroad
• A summary of Greek taxes for Americans living in Greece
  • Greek tax incentives
  • The Greek Non-Dom regime
• Avoiding double taxation as an expat in Greece
  • The Foreign Earned Income Exclusion
  • Claim the Foreign Tax Credit
  • Avoiding double social security taxation
• Reporting Greek bank accounts: FBAR
• FATCA reporting for Americans in Greece
• US tax treatment of Greek retirement accounts and investment accounts
  • PFICs and Foreign Trusts
• Watch out for state taxes when moving abroad
• Filing US taxes while living in Greece

Expats in Greece still have to file a US tax return

Even if you live full-time in Greece, you are still required to file a US federal income tax return if your income exceeds the standard filing thresholds.

For the 2024 tax year, that means $14,600 if you are single and under 65 years old. Married couples filing jointly have a higher limit of $29,200, but the same rules apply. However, you’ll still have to file if you have just $400 of self-employment income, or just $5 of any income if you’re married to a non-US taxpayer and filing separately.

Even if you’re already paying income taxes in Greece, you still have to file with the IRS, reporting your worldwide income every year.

Tax deadlines and extensions for Americans abroad

Americans living in Greece get an automatic two-month extension to file their US tax returns provided they are out of the US by the April filing deadline. This moves the federal filing deadline from April 15 to June 15.

However, if you owe taxes, interest starts accruing as of April 15. This means you should estimate your taxes early and pay on time to avoid penalties and interest.

If you need even more time, you can request an extension until October 15 by filing Form 4868.

A summary of Greek taxes for Americans living in Greece

If you stay in Greece for more than 183 days in a calendar year, you are considered a Greek tax resident.

Greece taxes residents on their worldwide income, so you will need to file a Greek tax return and pay Greek income taxes on income from the US, too. The Greek tax year aligns with the calendar year, and tax returns are typically due in late June or early July, depending on government extensions.

Greek income tax rates start at 9% and rise up to 44% for higher earners. 

There are also additional taxes to consider, including a solidarity contribution for higher income levels and social security contributions if you are self-employed.

If you’re a Greek tax resident and sell assets, whether in the US, Greece or anywhere else, including real estate, you’ll have to pay Greek capital gains taxes. This means it may make sense to sell US real estate before you relocate, or to rent it rather than sell it while you’re resident in Greece. 

You’ll need to report rental income from US (and Greek properties) on your Greek as well as US tax returns, though.

Greek tax incentives

Greece presents generous tax incentives designated to attract foreign retirees, remote workers and investors, especially US Nationals.

For Americans receiving pension income, Greece offers one of Europe´s most favourable tax deals: a flat 7% income tax rate program that allows you to pay just 7% of Greek income tax on all foreign-source income, not just foreign pension income, for 15 years. To qualify, the applicant must transfer tax residency to Greece, must not have been a Greek tax resident in five of the last six years, and must show proof of receiving income from a recognized foreign pension, including US Social Security and private pensions.

You’ll need to submit your application to the Greek tax authority (AADE) by March 31st of the year in which you intend to become a Greek tax resident. Once approved, the 7% rate applies only to foreign-source income; Greek-source income remains subject to normal progressive tax rates.

For remote workers and skilled professionals, Greece offers a 50% tax reduction in income tax for up to 7 years. This regime is particularly attractive for American remote workers employed by U.S. companies who wish to enjoy the lifestyle and cultural richness of Hellas. By significantly easing the Greek tax burden on foreign income—and coupled with the country’s affordable cost of living—it makes establishing a base in this storied land an enticing choice for digital nomads and location-independent workers.

To qualify, you must move your tax residency to Greece, not have been a Greek tax resident in five of the last six years, commit to living in the country for at least two years, and be employed by a Greek or foreign company, or otherwise be self-employed.

The Greek Non-Dom regime

Another significant tax incentive is the Non-Dom (non-domiciled) Regime for high net-worth individuals if you’re looking to establish permanent or long-term residence in Greece.

To qualify, applicants must invest in Greece an amount of €500,000 minimum within three years starting from the application date. Eligible investments include real estate, business ventures, stocks, bonds, and other approved financial assets. They can be held individually or through a legal entity. Additional requirements include establishing tax residency in Greece and not have been a tax resident in Greece for at least seven out of the last eight years before applying.

As a beneficiary of this regime, high net-worth individuals will pay a flat annual tax of €100,000 on worldwide income for a period of 15 years. This covers all foreign-sourced income, including foreign capital gains, as well as inheritance and gifts regardless of the total amount. As a result, high-income individuals can make significant savings on their foreign income. Family members can also benefit from this regime, with an additional flat tax of €20,000 per family member. This ensures that the entire family can enjoy these tax advantages, making it easier for wealthy individuals to relocate along with their families. Submit your application to the Greek tax authority (AADE) on or before March 31st of the year in which you intend to become a Greek tax resident. 

Please note this is only an informational overview of Greek taxes (current as of the time of writing) and does not constitute tax advice. Online Taxman specializes in US taxation for Americans living abroad. While we are familiar with the typical tax situation of American expats living in Greece, we cannot advise on Greek taxes. Please consult a local tax advisor.

Avoiding double taxation as an expat in Greece

The US-Greece Tax treaty doesn’t prevent expats in Greece from having to file or pay US taxes, although there may be some useful benefits for some expats that you can claim (for example reduced withholding rates on dividends, interest, and royalties income). When you file however, there are tax breaks you can claim to help avoid double taxation.

The Foreign Earned Income Exclusion

The Foreign Earned Income Exclusion (FEIE) is one of the biggest tax breaks for Americans abroad. It lets you exclude an amount of income earned while you’re physically outside the US from US tax. Passive income such as rent and dividends aren’t considered earned though, and so can’t be excluded

If you qualify, you can exclude up to $126,500 of foreign earned income from US taxes for 2024. For 2025, the exclusion limit rises to $130,000.

You can qualify for the FEIE in two ways: by passing the Physical Presence Test or the Bona Fide Residence Test.

The Physical Presence Test requires you to spend at least 330 full days outside the US in a 12-month period. The Bona Fide Residence Test meanwhile required you to prove that you have established residency in Greece and intend to reside there indefinitely

To claim the Foreign Earned Income Exclusion, you must file IRS Form 2555 with your tax return.

Claim the Foreign Tax Credit

If you are paying income taxes in Greece, you may be able to reduce your US tax bill by claiming the Foreign Tax Credit. The FTC gives you a dollar-for-dollar credit for foreign taxes paid, which, as Greece has higher income tax rates, can significantly lower your US tax liability. Unlike the FEIE, the FTC can apply to a wider range of income, including passive income, such as dividends or capital gains.

To claim the Foreign Tax Credit, you need to file Form 1116.

However, you can’t apply the Foreign Earned Income Exclusion and the Foreign Tax Credit to the same income. Consider carefully which will be best for you. Although you cannot apply both the FEIE and FTC to the same income, it is possible to use both in the same tax year for different categories of income. 

For example, you may apply the FEIE to exclude a portion of your foreign earned income, and then use the FTC to offset US taxes on the remaining portion of earned income or on income types not eligible for exclusion. This coordinated approach can offer more complete relief from double taxation.

At Online Taxman, we can help you plan to ensure you make the best decisions given your situation and longer term plans. 

Avoiding double social security taxation

There is a tax treaty between Greece and the US that covers social security taxation known as a Totalization Agreement. Whether you pay US or Greek social security taxes depends how long you’ll be living in Greece for. Whichever you pay to, it can count towards your ability to receive payment in both countries, depending where you retire.

To avoid double contributions, it is critical to obtain a Certificate of Coverage under the agreement when applicable. Planning ahead can prevent this costly overlap

Reporting Greek bank accounts: FBAR

If you have one or more Greek bank (or other financial) accounts, you may have an additional US reporting obligation called an FBAR (Foreign Bank Account Report).

This means that you must file FinCEN Form 114 to the US Treasury if the combined balance of all your foreign (non-US registered financial) accounts exceeds $10,000 at any point during the year.

You must file your FBAR separately from your tax return, and there are steep penalties if you fail to file on time. The filing deadline is April 15th, with an automatic extension until October.

If you own a Greek business or have signature authority over corporate accounts, both you and the business will have to file FBARs.

FATCA reporting for Americans in Greece

In addition to FBAR filing, you may also have to file Form 8938 under FATCA (the Foreign Account Tax Compliance Act).

If you live abroad and your total foreign financial assets exceed $200,000 at the end of the year – or $300,000 at any time during the year – you must file Form 8938 with your tax return.

Form 8938 covers not just bank accounts but also foreign pensions, investments, and ownership stakes in foreign businesses.

US tax treatment of Greek retirement accounts and investment accounts

As well as reporting Greek investment accounts on FBAR and FATCA forms, think carefully about saving for retirement in Greece. 

The IRS doesn’t recognize many Greek retirement accounts are not recognized as tax-deferred. Employer contributions to a Greek pension plan meanwhile may be considered taxable compensation in the US even though they are deferred for Greek tax purposes. 

To determine whether employer contributions are taxable, you must assess whether the plan qualifies as a tax-exempt trust or pension under US tax law—which most Greek plans do not. 

If the plan is not recognized, contributions may be taxed when made and again when withdrawn.

PFICs and Foreign Trusts

The IRS may treat some Greek pooled investment accounts, such as UCITS, as Passive Foreign Investment Companies (PFICs). A PFIC is a non-US corporation where 75% or more of the income is passive or at least 50% of the assets produce passive income.

PFICs are subject to highly punitive tax rules, including the potential for interest charges on gains and the requirement to file Form 8621. If you own PFICs, consider seeking specialized tax advice to evaluate elections such as a Qualified Electing Fund (QEF) or Mark-to-Market election.

In addition, some Greek retirement or savings plans may meet the IRS definition of a foreign trust. This is typicaly if the assets are held and managed by a third party and you have a beneficial interest. You should report these using Forms 3520 and 3520-A. Non-compliance carries steep penalties, so it’s important to identify any plans that may qualify early and comply fully with reporting.

Many Greek retirement accounts are classified as foreign trusts by the IRS. This means you may need to file Form 3520 or Form 3520-A every year. These forms are complex, and penalties for missing them are steep, even if you don’t owe US tax. 

Foreign ETFs, mutual funds and pooled pension accounts can also be classified as Passive Foreign Investment Companies (PFICs) by the IRS. This means more complex reporting and potentially additional US taxes.

So consider where you plan to retire when saving for retirement, and consider saving in that place. 

Also, keep in mind that the US tax benefits of US retirement accounts like IRAs and 401(k)s, aren’t recognized in Greece. That means they’re taxed by Greece at local income tax rates, even if they’re tax-deferred in the US.

We can help you plan for retirement in a tax optimized way.

Watch out for state taxes when moving abroad

Some US states, like California, New York, and New Mexico, make it difficult to break residency for tax purposes.

If you still have strong ties to your home state, such as owning property, holding a driver’s license, or voting, you might continue to owe state income taxes even after you move to Greece.

To avoid ongoing state tax obligations, make sure you sever all ties and establish clear residency abroad.

Filing US taxes while living in Greece

Living in Greece can be an incredible experience, but it can also make taxes more complex. As a US citizen resident in Greece, you have to file taxes in both the US and Greece. However, with the right planning, you can normally avoid double taxation and make the most of tax benefits in both countries.

If you’ve been living in Greece and didn’t know you had to file US taxes, don’t worry. The IRS Streamlined Offshore Filing Procedures may let you catch up without penalties.

Not all tax professionals understand the ins and outs of expat tax rules. At Online Taxman, we have helped thousands of Americans living in Greece. We understand both the US and Greek tax systems. We will help you stay compliant while keeping your overall tax bill as low as possible through tailored advice and strategic planning.