Managing Finances in Greece: Currency, Taxes, and Retirement Income
Jul 2, 2025
Managing Finances in Greece: Currency & Taxes | Mitos
Greece offers retirees a structured and affordable lifestyle, supported by reliable public healthcare, a temperate climate, and access to modern amenities. However, beyond the benefits of daily life, those who relocate to Greece after retirement should be aware of and adjust to a new set of financial responsibilities. After relocating, managing everyday expenses in euros, understanding local tax regulations and obligations, and handling income from abroad becomes mandatory. Careful financial planning is essential not just for comfort, but for long-term legal and fiscal stability.
This guide outlines the critical components of managing money in Greece, enabling retirees to settle with clarity, confidence, and control over their financial future.
Why is Financial Management Crucial in Greece After Retirement?
Relocating to Greece after retirement requires more than adapting to a new lifestyle, and it demands a structured and informed approach to personal finance. From daily expenses to long-term planning, effective financial management is central to a stable and secure retirement. Managing finances adequately helps retirees
1. To stay compliant with local financial regulations
2. To maximise the value of fixed retirement income
3. To maintain a sustainable day-to-day budget
4. To be prepared for healthcare and unexpected costs
5. To make tax-efficient and informed financial decisions
What Currency Is Used in Greece and How Should You Manage It?
Greece uses the euro (EUR, €) as its official currency, which is the same across all Eurozone countries. One euro is divided into 100 cents. Both coins and banknotes are used in daily transactions and for everyday spending.
If you're relocating from a Eurozone country, managing finances in Greece becomes easier if you use the local currency, so you won’t need to worry about currency conversion. However, suppose you're moving from non-EU countries such as the United States, the United Kingdom, Canada, or Australia. In that case, it’s essential to understand how to exchange and manage your money effectively to avoid unnecessary costs.
Euro Denominations You’ll Commonly Use
Coins: 1, 2, 5, 10, 20, and 50 cents; €1 and €2 coins
Notes: €5, €10, €20, €50, €100, €200, and €500 (note: €200 and €500 are rarely accepted in shops)
Tip: Always carry smaller denominations and coins. In local markets, taxis, or rural cafés, it’s common for vendors to refuse extensive notes due to limited change.
How to Manage Finances with Currency Exchange and Transfers?
Use established banks, online transfer platforms like Wise, Revolut, or XE, or reputable local exchange offices.
Avoid exchanging money at airports or tourist kiosks, where the rates and fees are high.
Monitor exchange rates and time your larger transfers (e.g., pension funds or savings) during favourable periods.
Transfers exceeding a certain threshold may trigger AML (anti-money laundering) reviews, so it is essential to keep relevant paperwork ready, including documentation that shows the source of funds (e.g., pension statements or property sale records).
How to Manage Finances with Card Payments and Daily Transactions?
Debit and credit cards are widely accepted in urban areas, supermarkets, pharmacies, and most restaurants. Some remote villages and traditional businesses prefer to operate on a cash-only basis.
Cards from non-Greek banks may attract foreign transaction fees of 1–3%. It's best to verify rates with your home bank before relying heavily on foreign cards.
Pro Tip: Even though cards are accepted, cash still dominates in small towns. Carry enough euros in cash to cover basic needs for at least a couple of days when travelling outside major cities.
How to Manage Finances with ATMs and Cash Withdrawals?
Greece has a well-established ATM network, including those located at airports, tourist centers, and banks. However, withdrawals using international cards often incur a flat ATM fee of €2–€3 per transaction, in addition to any bank-imposed charges. Daily withdrawal limits may vary among banks. Some ATMs allow up to €600 per transaction, while others cap it at €200–€300.
How to Manage Finances with Digital and Contactless Payments?
Contactless card payments, mobile wallets (such as Apple Pay and Google Pay), and QR-based systems are becoming increasingly accepted, especially in urban areas. Despite growing digital adoption, cash remains essential in many parts of Greece. So, always carry small euro notes and coins, especially when using taxis, kiosks, or local buses where cards may not be accepted.
Understanding the Greek Tax System for Foreign Residents
Greece’s tax system is based on residency and source of income. If you reside in Greece for more than 183 days per year, you’re considered a tax resident.
Understanding Key Tax Elements for Retirees in Greece
Navigating the Greek tax system is essential for retirees looking to manage their finances wisely. While Greece offers a pleasant lifestyle, understanding the core tax obligations will ensure smoother day-to-day living and long-term financial peace of mind.
Standard Income Tax Rates: Greece applies a progressive tax system, ranging from 9% to 44%, depending on total annual income. Other taxes are applied to capital gains and dividends, usually 15% and 5% respectively.
Foreign Pensioners Tax Incentives: For retirees receiving foreign pensions, a special flat rate of 7% may apply to foreign pensioners who transfer their tax residency to Greece, subject to approval.
Solidarity Contribution: Individuals with higher incomes may be subject to an additional solidarity levy, though it has been gradually reduced in recent years and, in some cases, suspended for pensioners.
Property Tax (ENFIA): Homeowners in Greece pay an annual ENFIA (Uniform Real Estate Ownership Tax), calculated based on property size, location, and value. While generally modest, this cost should be factored into your retirement budget. Read more in our complete guide to property purchase in Greece.
VAT (Value-Added Tax): The standard VAT is 24%, applied to most goods and services. However, reduced rates (13% or 6%) apply to necessities like food, medicine, and utility services. Some islands benefit from discounted VAT rates due to their remoteness.
Understanding these key tax elements helps retirees plan better, avoid penalties, and explore potential savings under bilateral tax agreements. Mitos Relocation offers guidance to help you stay compliant while making the most of your retirement income in Greece.
Double Taxation Treaties:
Greece has agreements with many countries (including the US, UK, and Canada) to avoid double taxation. These ensure that you won’t be taxed twice on the same income. Always consult a local tax advisor to ensure compliance.
How Is Retirement Income Taxed in Greece?
For foreign retirees, taxation depends on their residency status and the type of income they receive. If you are a tax resident, your global income is subject to taxation in Greece. However, recent reforms have introduced favourable tax incentives.
The 7% Flat Tax Regime:
Greece offers a flat 7% tax rate on foreign pension income for up to 15 years to retirees who:
Move their tax residence to Greece
They were not Greek tax residents in 5 out of the previous 6 years.
They come from a country with which we have a tax agreement with Greece.
Application Process:
To apply, eligible foreign retirees must submit a request to the Greek Independent Authority for Public Revenue (AADE). The application must be filed by March 31 of the relevant tax year. Once approved, the retiree is taxed at a flat rate of 7% on all foreign-sourced income. This favourable rate applies for up to 15 years, provided the applicant continues to meet the residency and income requirements.
This incentive can significantly reduce the tax burden for expat retirees.
Navigating the Tax System in Greece
Understanding your tax obligations in Greece is essential to avoid legal issues and financial penalties. Greece taxes residents on worldwide income, so foreign pensions and other earnings may be subject to Greek taxation.
Filing and Tax Rates
Tax year: January 1 to December 31
Filing deadline: Typically by June 30, but this can change annually
Income tax rates if no special incentive applies (as of 2025):
Up to €10,000: 9%
€10,001–€20,000: 22%
€20,001–€30,000: 28%
€30,001–€40,000: 36%
Over €40,000: 44%
Social security contributions may also apply, depending on your income and residency status.
What are the Different Sources of Income for Expat Retirees who Move to Greece?
Income for expats who retire in Greece typically consists of foreign public pensions, foreign private pension schemes, rental income, and investments. Some retirees decide to engage in local part-time work, although this is not allowed to non-EU nationals on a FIP/Golden Visa.
To ensure financial stability during retirement, it is essential not only to understand these income sources but also to manage them effectively. Here’s a detailed breakdown of each:
1. Foreign Public and Private Pension Transfers
Most foreign retirees in Greece continue receiving pensions from their home countries. These may include:
UK State and Private Pensions (like SIPPs)
It's useful to remember that local UK incentives, like the tax-free withdrawal of 25% of your pension pot, may not be available in Greece. It’s better to take advantage of these incentives before relocating
Most UK taxes (except for Government ones) can become tax-exempt in the UK, and are only taxed in Greece. Read more in this article on how the tax for UK pensions works in Greece.
US Social Security and other pensions
US pension income remains liable for federal taxation in the U.S. That said, given the Dual Tax Agreement in place, the tax paid in the US is waived in Greece, and your local tax liabilities will be capped at 7% if you qualify for the tax incentives for foreign retirees
Public and private pensions from most countries follow a similar approach to the UK: with the exception of government pensions (e.g., for former civil servants), you can typically obtain an exemption from taxation in the country of origin. In Greece, your local tax liability is then capped at 7%.
Pension payments are typically sent in the home currency and converted to euros when received in Greece. Exchange rates and bank fees can impact the actual amount received.
. 2. Personal Savings, Investments, and Deposits
Savings in local or foreign bank accounts provide liquidity and financial security, especially for emergency needs or as a supplementary monthly income.
How It Works:
Personal savings & investments can include:
Standard savings accounts
Fixed-term deposits (time deposits) offering better interest rates
Investments, comprising stocks, mutual funds, ETFs, or government bonds to support passive income.
Cash reserves for day-to-day needs
It’s useful to mention that foreign savings should be brought into Greece within 2 years from the relocation.
3. Real Estate Income
Many retirees own property in Greece or abroad, generating a monthly income through long-term rentals or holiday lets.
Rental income can be a reliable source of income, especially in high-demand areas such as Athens, Thessaloniki, Crete, or the Cyclades. Income is taxable in Greece and must be reported annually.
4. Part-Time Work or Freelancing
Some retirees in Greece engage in part-time roles, consultancy, or online freelance work to stay active and to increase their income.
Common activities include:
Teaching or tutoring
Translation work
Remote consulting
Tourism-related services (seasonal or remote)
This income is subject to Greek tax laws and may require self-employment registration. As mentioned above, this is not accessible to all expats, given work limitations on some types of visas.
How to Manage Finances with Retirement Income?
Effectively managing your finances in retirement requires more than knowing where your income comes from. It involves making strategic decisions around budgeting, tax planning, currency conversion, and long-term sustainability. Whether your income stems from public pensions, private savings, rental properties, or overseas transfers, the following practices can help you maintain financial control and peace of mind throughout your retirement in Greece.
1. Centralise Income and Expenses into a Greek Bank Account
Opening a local bank account simplifies payment of bills, rent, and insurance while reducing foreign transaction fees. Choose a bank that offers online services, English-language support, and SEPA transfer compatibility for EU-based pensions. Receiving all income in one account gives you a clearer picture of your finances and makes monthly tracking easier.
2. Use Multi-Currency and Transfer Services Wisely
For retirees transferring pensions or savings from abroad, managing exchange rates is key. Use platforms like Wise or Revolut to access competitive conversion rates and lower fees. Multi-currency accounts allow you to convert funds when exchange rates are favourable, which protects against monthly fluctuations and loss of value over time.
3. Create a Monthly Budget Based on Local Costs
The cost of living in Greece varies by region; however, retirees should prepare a monthly budget that accounts for housing, utilities, healthcare, transportation, and food expenses. Start by tracking actual costs during the first three months, then set limits. Use budgeting apps or spreadsheets to stay within your financial means and prevent overspending.
4. Prepare for Emergencies and Healthcare Costs
Even with access to public healthcare, many retirees opt for private insurance for faster service and broader coverage. Maintain a separate emergency fund to handle out-of-pocket medical expenses, property repairs, or unexpected travel. Ideally, this fund should cover 6–12 months of living expenses and be held in an accessible account.
5. Work with Financial and Tax Professionals
Greece’s tax system can be complex, especially for foreign retirees with income from multiple countries. A licensed tax advisor can help you stay compliant, avoid double taxation, and take advantage of beneficial regimes, such as the 7% flat tax for non-domiciled retirees. Financial advisors can also help align investment and withdrawal strategies with your lifestyle needs.
6. Review and Adjust Regularly
Your financial needs and income streams may change over time due to inflation, health needs, or new investment opportunities. Schedule an annual review of your income, expenses, and financial goals. Rebalancing your investments or reallocating your income can help keep your retirement plan on track.
Conclusion: Financial Peace of Mind in Greece
Managing your finances effectively while living in Greece is entirely achievable with the proper knowledge and preparation. By understanding how the euro works in daily life, staying compliant with Greek tax laws, and structuring your retirement income efficiently, you can enjoy your new chapter with financial confidence. Whether you're relocating permanently or spending your retirement years abroad, a proactive approach to budgeting, banking, and tax planning will enable you to embrace the Greek lifestyle fully.
Need help relocating or settling in Greece? Mitos Relocation provides comprehensive support for expatriates and retirees, encompassing immigration services, financial guidance, and additional services. To discuss your needs with our team, book a consultation today and ensure a seamless transition.
FAQs: Top Searched Queries About Finances in Greece
How can non-residents of Greece file their tax returns?
Non-residents of Greece who earn income from Greek sources are required to file a tax return through a designated tax representative. This representative, who must be based in Greece, is responsible for submitting the tax return on behalf of the non-resident to the Non-Greek Resident Tax Office, which is located in Athens. To be eligible, the non-resident taxpayer must have a Greek-source income, such as rental earnings, investment returns, or business income derived within Greece. Appointing a knowledgeable local representative ensures compliance with Greek tax obligations and facilitates the timely submission of returns.
What is the tax return due date in Greece?
In Greece, individual income tax returns must be filed by 30 June of the year following the tax year in which the income was earned. For example, income earned during the 2024 tax year must be declared and filed by 30 June 2025. The Greek tax authorities may occasionally grant extensions. Still, it is advisable to prepare and submit tax documentation well in advance of the deadline to avoid penalties or interest on late filings.
Are taxes high in Greece?
Greece is not considered one of Europe’s low-tax countries. The maximum personal income tax rate reaches 44%, placing it among the higher brackets in the region. However, the country offers some competitive elements within its tax system.
Foreign nationals may benefit from tax incentives such as one of the Non-Dom Tax Regimes, which allows foreign expats to pay a flat 7% tax on foreign-sourced income for up to 15 years. This scheme helps reduce overall tax liability for retirees relocating to Greece.
What are the financial requirements for retiring in Greece?
To retire in Greece, you must demonstrate that you have sufficient financial means to support yourself without relying on employment within the country. Typically, this means proving a monthly passive income of at least €3,500 for individuals. However, the amount may vary depending on the type of visa (such as the Greece Residence Permit for Financially Independent Persons or Golden Visa). Additional funds may be required for dependents. The income must be stable and recurring, typically from sources such as pensions, rental income, or savings, and supported by documentation, including bank statements or pension letters.
5. How Can Foreigners Open a Bank Account in Greece and Why Is It Important?
Opening a Greek bank account is essential for retirees to manage local payments, receive pensions, and reduce transfer fees. Both EU and non-EU nationals are eligible, though non-EU applicants require stricter documentation. You’ll need a valid passport, Greek Tax ID (AFM), proof of address, and income. Banks like Alpha Bank and Eurobank offer expat-friendly services. Most applications require an in-person visit. Setting up a local account ensures smoother financial transactions, better budgeting, and integration into Greece’s banking system, which is key for a stable and organized retirement.