Portugal’s NHR regime for retirees was drastically scaled back in 2024. Italy’s 7% flat tax applies only to its southern regions. Spain offers no retiree tax incentives. Meanwhile, Greece’s Article 5B — a 7% flat tax on ALL foreign-source income for retirees — remains virtually unknown outside a small circle of European tax advisors.

What Is Article 5B?

Article 5B of the Greek Income Tax Code (Law 4172/2013) allows foreign retirees who become Greek tax residents to pay a flat 7% tax on their entire worldwide foreign-source income — including pensions, dividends, interest, rental income, and capital gains. The rate is locked for up to 15 years.

This 7% is a total rate, not marginal. Whether your foreign income is €50,000 or €500,000 per year, the rate stays at 7%.

The Math: 7% vs. Standard Progressive Rates

Greek standard personal income tax uses brackets: 9% on the first €10K, rising to 44% above €40K. Compare:

Foreign Income	Standard Tax	5B at 7%	Annual Savings
€50,000	€13,900	€3,500	€10,400
€100,000	€35,900	€7,000	€28,900
€200,000	€79,900	€14,000	€65,900

Who Qualifies?

Non-tax resident in Greece for 5 of the last 6 years — a low bar if you haven’t been living in Greece
Receive a foreign pension — state or private, any amount
From a country with a DTA with Greece — China, US, UK, Canada, Australia, Hong Kong, and 57 other countries qualify
Reside in Greece ≥183 days/year — the hard requirement
Hold a valid long-term residence permit — non-EU passport holders need a Golden Visa or other permit

Practical Path: Golden Visa + 5B

For Chinese passport holders, the optimal route is: Greece Golden Visa (€250K commercial-to-residential property) + Article 5B. The Golden Visa provides the residence permit, 5B provides the tax benefit. They work in parallel.

Timeline: Enter Greece → Apply for AFM (tax ID) → Reside 183 days → Submit 5B application by March 31 of the following year → Foreign income taxed at 7% for the year.

How It Compares

Program	Tax Rate	Duration	Investment	Schengen
🇬🇷 Greece 5B	7% flat	15 yrs	None	✅
🇨🇾 Cyprus ND	5% pension / 0% dividends	17-27 yrs	None	❌
🇵🇹 Portugal NHR	Severely reduced (2024)	10 yrs	None	✅
🇮🇹 Italy	7% (south only)	10 yrs	None	✅
🇪🇸 Spain	24%+ progressive	—	None	✅

Portugal’s NHR was the gold standard for a decade. The 2024 reform gutted it for most retirees. Italy’s 7% is region-locked. Spain has no special program. Cyprus delivers better tax efficiency for dividend-heavy portfolios but falls short on mobility (non-Schengen).

Greece 5B, in 2026, is the only European retirement tax program that simultaneously offers:

Zero investment threshold
7% flat rate on all foreign income
Schengen Area mobility (27 countries)
15-year stability
Zero inheritance/wealth tax on foreign assets

Who Should Skip 5B

Annual foreign income under €20K — the savings don’t justify the move
Over €1.4M — Greece 5A (€100K fixed annual tax) becomes cheaper
Dividend-heavy income — Cyprus ND’s 0% dividend rate is superior
Can’t commit to 183+ days/year in Greece — this requirement is non-negotiable

FAQ

Can I combine Golden Visa and Article 5B?

Yes. The Golden Visa provides the residence permit (renewable every 5 years), while 5B provides the tax benefit (7% flat rate). They are independent programs that work together seamlessly.

Does the 7% rate apply to Greek-sourced income?

No. Only foreign-source income qualifies. Income generated within Greece (e.g., renting a Greek property you own) is taxed under standard progressive rates (9%-44%).

What happens after 15 years?

Article 5B expires and cannot be renewed. You revert to standard Greek progressive taxation. Plan a transition strategy within the 15-year window — consider restructuring assets or moving to another favorable jurisdiction.

Sources: Greek Independent Authority for Public Revenue (AADE), Greek Income Tax Code Law 4172/2013, Article 5B.

Not sure if Greece 5B is right for your situation? We offer a €699 tax compliance assessment — a personalized report comparing your optimal tax strategies across jurisdictions. 📧 globalpropai@foxmail.com