Portugal’s NHR for retirees was gutted in 2024. Italy’s 7% flat tax only covers its southern regions. Spain doesn’t have a retiree tax program worth mentioning.
Meanwhile, Greece’s Article 5B — a 7% flat tax on all foreign-source income for retirees — stays under the radar outside a small circle of European tax advisors. That’s a shame, because in 2026, it’s probably the best retirement tax deal in Europe.
What Is Article 5B?
Article 5B of the Greek Income Tax Code (Law 4172/2013) lets foreign retirees who become Greek tax residents pay a flat 7% on their entire worldwide foreign-source income. Pensions, dividends, interest, rental income, capital gains — all of it, at 7%. The rate locks in for up to 15 years.
This isn’t a marginal rate. Whether your foreign income is €50,000 a year or €500,000, the rate stays at 7%.
The Math
Greek standard progressive rates run from 9% (first €10K) to 44% (above €40K). Here’s what Article 5B saves you:
- €50,000 foreign income → €3,500 under 5B vs. €13,900 standard → saves €10,400/year
- €100,000 foreign income → €7,000 vs. €35,900 → saves €28,900/year
- €200,000 foreign income → €14,000 vs. €79,900 → saves €65,900/year
Who Qualifies
- Not been a Greek tax resident for 5 of the last 6 years (low bar if you haven’t lived in Greece)
- Receive a foreign pension — state or private, any amount
- Come from a country with a Double Tax Agreement with Greece — China, US, UK, Canada, Australia, Hong Kong, and 57 others qualify
- Live in Greece at least 183 days per year — non-negotiable
- Hold a valid long-term residence permit — non-EU passport holders need a Golden Visa or equivalent
How It Compares
- Greece 5B: 7% flat, 15 years, no investment required, Schengen ✓
- Cyprus Non-Dom: 5% pension / 0% dividends, 17-27 years, no investment, Schengen ✗
- Portugal NHR: Severely reduced (2024 reform), 10 years, no investment, Schengen ✓
- Italy: 7% southern regions only, 10 years, no investment, Schengen ✓
- Spain: No special retiree program
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 offers nothing.
Greece 5B, in 2026, is the only European retirement tax program that offers all of: zero investment threshold, 7% flat rate on all foreign income, Schengen mobility, 15-year stability, and zero inheritance/wealth tax on foreign assets.
Who Should Skip 5B
- Foreign income under €20K/year — the savings don’t justify the move
- Over €1.4M — Greece Article 5A (€100K fixed annual tax) becomes cheaper
- Dividend-heavy portfolios — Cyprus Non-Dom’s 0% dividend rate wins
- Can’t commit to 183+ days per year in Greece — this requirement is firm
Practical Path: Golden Visa + Article 5B
For Chinese passport holders, the route is: Greece Golden Visa (€250K commercial-to-residential conversion) + Article 5B. The Golden Visa gives you the residence permit; 5B gives you the tax rate. They run in parallel.
Timeline: enter Greece → get AFM (tax ID) → reside 183 days → submit 5B application by March 31 of the following year → foreign income taxed at 7% from that year.
FAQ
Can I combine Golden Visa and Article 5B?
Yes. The Golden Visa provides the residence permit (renewable every 5 years). 5B provides the tax benefit. They’re independent programs that work together seamlessly.
Does the 7% rate apply to Greek-sourced income?
No. Only foreign-source income qualifies. Income generated inside Greece (renting a Greek property you own, for example) is taxed under standard progressive rates.
What happens after 15 years?
Article 5B expires and can’t be renewed. You revert to standard Greek progressive taxation. Plan an exit strategy within the 15-year window — restructure assets or move to another jurisdiction.
Sources: Greek Independent Authority for Public Revenue (AADE), Greek Income Tax Code Law 4172/2013, Article 5B.
Not sure if Greece 5B fits your situation? We offer a €699 cross-border tax assessment — a personalized report comparing your optimal strategies across jurisdictions. 📧 globalpropai2@gmail.com