A new tax haven emerges in the heart of Europe, and the exodus of retirees from all corners of the world begins

Greece has rapidly become one of Europe’s most appealing destinations for people looking to relocate — and not just because of its sunny climate or affordable lifestyle. A sweeping set of ultra-favorable tax incentives is triggering a wave of new residents, especially retirees seeking a place where their income stretches farther.

In recent years, Greek authorities have rolled out a tax regime that offers unusually low rates for foreign pensioners. The centerpiece: a flat 7% income tax on retirement benefits and other foreign-sourced income. For many retirees, this is a dramatic reduction compared to the tax burdens in their home countries.

Local media report that the interest is accelerating fast. Greece’s tax agency, AADE, has already processed more than 8,000 applications for tax residency changes — with 750 filed in just the first half of 2025.

Why Greece’s tax strategy is drawing global attention

These incentives aren’t limited to pensioners. Greece is also courting wealthy investors through a program that allows anyone who relocates and commits €500,000 (around $550,000) to real estate, business shares, or government bonds to qualify for a fixed annual tax of €100,000, regardless of actual income.

Family members can join the program for an additional €20,000 each, and the benefits last up to 15 years, provided the applicant wasn’t a Greek taxpayer for at least seven of the previous eight years.

Another incentive targets skilled professionals: individuals who have worked abroad for at least five of the last six years can now move to Greece and pay just half of the country’s standard income tax for seven years.

Greece is just one of a number of countries in the EU looking to make their country a “haven” for those looking to pay lower taxes, without falling foul of the EU regulations and getting put on the Council’s list of non-cooperative jurisdictions for tax purposes.

Greece wants its people back — and newcomers, too

During the financial crisis from 2010 to 2019, Greece saw more than 660,000 citizens leave in search of work. Now, the government is hoping that reduced taxes and simplified bureaucracy will help reverse that exodus.

Since October, the tax office has revamped the entire residency-change system, allowing applications to be completed online. Officials say the new process is both faster and far more transparent.

Experts agree that the incentives could attract wealthy investors and highly skilled workers. Still, they caution that tax perks alone may not be enough — Greece will need broader long-term policies to convince these new residents to stay.

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