Comprehensive Guide to Personal Income Tax in Greece 2025

Personal Income Tax in Greece

Personal income tax in Greece is governed by Law 4172/2013 and applies to all individuals earning income within the country. Residents are liable for tax on all income of worldwide sources, while non-residents pay tax only on income earned from Greek sources. The tax year follows the calendar year and all individuals must file an annual return reporting total income. Rates are progressive, ranging from 9 percent to 44 percent, while specific types of income such as dividends and interest are taxed at fixed rates. This blog will explain the tax rates, categories of income, exemptions, special regimes for foreigners, and filing obligations in Greece.

Income Tax Rates for Individuals in Greece

Greece applies a progressive tax system for individuals where a higher earner will pay more on the total income and a lower earner will pay less. Both residents and non-residents with income from Greek sources will fall under these rules. Dividends will carry a 5 percent tax rate and interest will be taxed at 15 percent on the income received. Knowing the rates will help with planning the finances and calculating the total tax obligations of the individual.

The rates for 2025 are:

• 9 percent on income up to €10,000

• 22 percent on income from €10,001 to €20,000

• 28 percent on income from €20,001 to €30,000

• 36 percent on income from €30,001 to €40,000

• 44 percent on income above €40,000

Taxable Income Categories in Greece

Income in Greece is classified into a few main categories for the calculation of tax. Each category has a set of rules and rates that will determine the tax on the income. Correct classification will ensure proper reporting and access to all eligible deductions. The following points explain the main categories of taxable income and how each will be taxed in Greece:

• Employment Income: Wages and salaries will be taxed progressively on the total income of the employee and the employer will withhold the required tax on the payment to the employee.

• Business Income: Self-employed individuals and business owners will report the net profit after deducting all allowed business expenses on the income of the business for the year.

• Rental Income: Income from a property is taxed progressively based on total annual rental income: 15% on income up to €12,000, 35% on income from €12,001 to €35,000, and 45% on income above €35,000.

• Investment Income: Dividends will face a 5 percent tax and interest will face a 15 percent tax on the income received from shares, bonds or other financial assets held by the individual.

• Other Income: Pensions, royalties and other miscellaneous income will follow the tax rules that apply on the type of income received during the year.

Tax Exemptions and Deductions

Greece provides a set of exemptions and deductions that will reduce the taxable income of an individual. These provisions will lower the total tax liability and support eligible personal or family expenses of the taxpayer. Knowing the available allowances will ensure correct reporting on the income and help with better tax planning of the year. The main exemptions and deductions are as follows:

Basic Personal Allowance: A standard reduction on the taxable income will apply to all taxpayers and will lower the total tax burden of the individual for the year.

Family Allowances: Deductions will apply for dependents of a taxpayer including children or a spouse to cover the family-related expenses on the income of the household.

Disability Allowances: Additional deductions will apply on the income of taxpayers with a disability to reduce financial obligations and support living costs.

Donations: Contributions made to approved charities will be deductible from the taxable income of the donor on the donations of the year.

Business Expenses: A self-employed individual will deduct ordinary and necessary expenses of the business on the reported income of the business for the year.

Special Tax Regimes for Foreign Residents

Greece offers special tax regimes for foreign individuals that will reduce taxes and simplify reporting for those who qualify. These programs will help plan the finances of a foreign resident efficiently and ensure compliance with the tax law of Greece. Knowing the eligibility criteria and the benefits will assist foreigners planning relocation or long-term work in the country.

Digital Nomad Incentive: A remote worker who establishes a tax residency in Greece and meets the employment criteria will receive a 50 percent tax reduction on the income of Greek sources for a period of up to seven years. Eligibility requires the individual not to have been a Greek tax resident for five of the past six years and to commit to living in the country for a minimum of two years.

Filing and Payment Obligations

All individuals in Greece must meet the filing and payment obligations of the tax law. Residents and non-residents with income from Greek sources are required to report the income and calculate the tax liability accurately. Annual tax returns must be submitted by the end of June following the tax year. Taxes can be paid in installments according to a schedule set by the authorities. Employers will withhold taxes from the wages of employees and remit them directly to the Greek tax authorities to ensure compliance.

Proper compliance will help avoid fines and interest charges for late filing or payment. Filing accurate returns and paying the taxes on time supports effective financial planning and ensures that individuals maintain a good standing with the authorities of Greece. Meeting these obligations allows taxpayers to manage the liabilities of a tax year efficiently while staying within the requirements of Greek law.

Recent Tax Reforms in Greece

In September 2025, the Greek government announced a €1.6 billion tax reform package aimed at reducing personal income tax and providing support to specific groups of taxpayers. These reforms are scheduled to take effect on January 1, 2026. The measures are designed to encourage social support, foster economic activity, and ensure fairness in the taxation of income. Understanding the details will help residents determine their eligibility for each benefit and apply it correctly to their taxable income for the year. 

The main reforms include:

• Tax Rate Reductions: A 2% reduction will apply to most income brackets, lowering the overall tax liabilities of taxpayers.

• Young Workers: Individuals under the age of 25 with annual earnings below €20,000 will be fully exempt from personal income tax on that income.

• Large Families: Families with four or more children will receive additional exemptions on taxable income to help cover household expenses.

• Rural Residents: Residents of islands and rural areas will be eligible for tax relief on income earned to encourage economic activity outside urban centers.

 

Conclusion

Personal income tax in Greece in 2025 is governed by progressive rates ranging from 9 percent to 44 percent and applies to income from wages, dividends, interest, and rental earnings. Proposed reforms announced in September 2025 are scheduled to take effect on January 1, 2026, and include exemptions for young workers, large families, and residents of rural areas. Foreign residents may benefit from the Digital Nomad Incentive on income sourced in Greece. Following the filing and payment obligations of the law is necessary to avoid fines and interest. Understanding these rules will help residents and foreigners plan their taxes efficiently and comply with Greek tax regulations.

FAQs

1. What is the personal income tax rate in Greece for 2025?
    The personal income tax rates in Greece for 2025 will range from 9 percent to 44 percent and will apply on the total income of a taxpayer according to the income brackets of the year.

2. Are there tax exemptions for young workers in Greece?
    The Greek government announced a proposed exemption for taxpayers under the age of 25 with annual earnings below €20,000. If implemented, these individuals would be fully exempt from personal income tax, reducing the tax burden on early earnings. This measure is scheduled to take effect on January 1, 2026, pending final approval and enactment.

3. How does the Digital Nomad Incentive work in Greece?
    A remote worker who establishes tax residency in Greece and meets eligibility will pay 50 percent less tax on the income of Greek sources for up to seven years. The incentive will apply on Greek-based income only.

4. What are the tax rates on rental income in Greece?
    Income from a property in Greece will be taxed at 15 percent on amounts up to €12,000, at 35 percent on amounts from €12,001 to €35,000, and at 45 percent on amounts above €35,000, according to the total annual rental income. 

5. When are tax returns due in Greece?
    Tax returns in Greece will be due by the end of June of the following year and installment payment options will apply on the total tax of the year.