Income Tax E1 – Taxes in Greece

Tax situation after emigration

If you de-register in Switzerland and take up permanent residence in Greece, your entire income - including AHV pension, pension fund benefits and other income - will be taxed in Greece. Switzerland loses its right to tax most types of income.

The double taxation agreement between Switzerland and Greece

There is a double taxation agreement (DTA) between Greece and Switzerland, which prevents you from having to pay taxes on the same income in both countries. The DTA regulates which country has the right to tax which types of income.

Basically: As a resident of Greece, you pay your income tax in Greece. However, Switzerland may still have the right to tax certain types of income (e.g. withholding taxes on capital gains). A precise analysis of your personal situation by a specialized tax advisor is essential.

The 7% flat rate for foreign pensioners

Greece offers foreign pensioners who transfer their tax residence to Greece a particularly attractive tax model: a flat-rate income tax of just 7% on all foreign income. This model is valid for 15 years from the year of residence.

Requirements for the 7% flat rate:

• You have not been tax resident in Greece for the last 5 out of 6 years.
• You must submit an application to the Greek tax office.
• Your country of origin must have a double taxation agreement with Greece (Switzerland has one).

More information: Greece's 7% flat tax for foreign pensioners - Everything you need to know

Greek income tax rates (standard model)

If you do not use (or cannot use) the 7% flat rate model, the regular Greek income tax rates apply:

Compared to Switzerland, where the tax burden varies considerably depending on the canton, the Greek tax rates - especially with the 7% option - can be significantly cheaper.

The tax return E1

The Greek income tax return is referred to as E1. It is submitted online annually via the AADE platform. To submit, you will need your AFM and the access codes to the AADE platform.

Recommendation: Specialized tax advisor

The extent to which new arrivals can benefit from the 15-year 7% flat rate must be clarified in Switzerland with a tax advisor who is familiar with international tax law with a focus on Switzerland-Greece. The tax situation is complex and varies from person to person - professional advice is not an option, but a necessity.

Checklist: Income Tax

• ☐ Consult an international tax advisor (Switzerland/Greece)
• ☐ Have the double taxation agreement and 7% flat rate checked
• ☐ Have AFM and AADE access codes ready
• ☐ Document all sources of income (AHV, PK, capital gains, etc.)
• ☐ Submit an application for a 7% flat rate to the Greek tax office (if applicable)
• ☐ Submit annual tax return E1