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Greece has something Portugal doesn’t: a 7% flat tax on foreign pension income. It’s real, it has real strings attached, and it doesn’t cover everything you think it does.
The headline most Americans hear is "7% flat tax on your pension." The part that gets left out: what counts as a qualifying pension, and what doesn't.
Banking, in order
- 1. AFM: Greece's tax registry number, the equivalent of Portugal's NIF, obtained through the Independent Authority for Public Revenue (online via myAADE, or in person once you're there).
- 2. A working account: National Bank of Greece, Alpha Bank, Piraeus, and Eurobank all serve US citizens, but expect FATCA paperwork (a W-9 is standard) and be aware some smaller institutions decline US applicants outright rather than absorb the FATCA reporting cost.
- 3. The friction: all four major Greek banks require an in-person branch visit for ID verification. Realistic timeline for full account activation, starting the paperwork remotely and finishing in person: six to eight weeks.
- 4. The starter alternative: Wise is FATCA-compliant, opens online from a US address in minutes, and issues a Euro IBAN plus debit card, a genuinely useful bridge while the local account is in process.
The 7% pension regime, in full
- The rate: a flat 7% on qualifying foreign-source income, for up to fifteen years, under Article 5B of the Greek Income Tax Code.
- Eligibility: you must not have been a Greek tax resident for five of the six years before the move, and you must be transferring tax residence from a country with an active tax-cooperation agreement with Greece (the US qualifies via the existing tax treaty).
- What actually qualifies: a recognized pension tied to prior employment, whether from a government pension authority or a qualifying private employer plan. Investment pensions, self-funded pensions, and annuities not connected to an employment relationship are generally excluded from the regime, even though they're still "retirement income" in the everyday sense.
- The deadline that trips people up: the election to join the regime has to be filed by March 31 of the relevant tax year. Miss it, and that year defaults to Greece's ordinary progressive rates instead, a real and easy-to-miss trap for a first-year mover.
⚠️ Tax law here changes on an annual cycleThe current framework runs through Law 5246/2025, adopted by the Hellenic Parliament in November 2025 and effective from January 2026. Eligibility conditions and the qualifying-pension definition are the kind of detail that moves year to year. Check the quarterly update bar before filing around anything on this page.
The treaty and totalization layer
- Income tax treaty: the US and Greece have a bilateral tax treaty that prevents most double taxation, but it doesn't exempt you from filing. Every US citizen files a US return every year regardless of residency.
- Totalization agreement: in force since 1994, per the Social Security Administration. It coordinates Social Security coverage so you're not paying into both systems for the same work, and it's the mechanism that keeps years worked in both countries countable toward eligibility.
- FBAR/FATCA: foreign account reporting obligations continue after the move. Nothing about relocating makes them go away.
- State tax domicile: a handful of US states, California and New York among them, don't release residency ties easily. Worth resolving before the move, not after.
Worked tax examples
Scenario A
Single, Social Security only, elects the 7% regime
Annual income$28,800 SS
Est. US tax$0
Est. Greece tax (7%)~$2,000
US Social Security is administered by a government authority and tied to employment history, so it likely qualifies as a "pension tied to prior employment" under the regime, but confirm that read with a cross-border advisor before relying on it. This turns a $0 US bill into a real, if modest, Greek one.
Scenario B
Couple, SS + IRA withdrawal
Annual income$60K SS + $40K IRA
Est. US tax~$6,800
Est. Greece tax~$5,500 net
The IRA withdrawal is investment income, not employment-linked pension income, so it likely falls outside the 7% rate even where the Social Security portion qualifies. Model the two income streams separately, don't assume one flat rate covers both.
Scenario C
Couple, SS + US rental income
Annual income$50K SS + $25K rental
Est. US tax~$3,100
Est. Greece tax~$3,800 net
Same pattern as Portugal: US-sourced rental income keeps a US filing obligation alive after the move, and it sits outside the 7% pensioner rate entirely, taxed on its own schedule.
Scenario D
Roth conversion, year before the move
Conversion amount$80K, last US tax year
Est. US tax~$14,600
Est. Greece tax$0, not yet resident
Identical logic regardless of destination: converting while still a US resident, before Greek tax residency starts, is why timing the move matters as much as the number itself.
One line worth rememberingThe 7% regime is real and it's genuinely attractive if your income is a straightforward government or employer pension. It is not a blanket 7% on "whatever money you have." IRA withdrawals, rental income, and dividend income sit outside it by default. Anyone whose income mix includes more than one of those types is a reasonable candidate for a cross-border preparer's first-year quote, not a DIY filing.
Illustrative 2026 estimates. Not tax advice, confirm your numbers with a cross-border CPA.