Retiring in Greece from the UK: What Happens to Your Taxes?

Thinking of retiring in Greece from the UK? You’re not alone. Greece is increasingly popular among British retirees—and not just for the warm weather, breathtaking landscapes, and affordable lifestyle.

If you’re still weighing the pros and cons of retiring abroad, take a look at the top reasons British retirees are choosing Greece for their golden years.

One major factor making Greece attractive for those looking to retire abroad is its favourable tax regime for foreign pensioners. If you’re receiving a UK pension and considering relocating, understanding how your taxes will be impacted is essential. In this article, we’ll walk you through the key tax rules and what they could mean for your retirement plans.

⚠️ Please note: This article is for informational purposes only and does not constitute tax advice. Tax laws may change, and your personal situation matters. Always consult a professional before making decisions.

Why Greece Appeals to UK Retirees?

 Besides the Mediterranean lifestyle and cost of living benefits, Greece offers one of the most appealing tax incentives in Europe for foreign pensioners. If you become a tax resident in Greece and meet certain conditions, you can apply to be taxed at a flat rate of 7% on your foreign income, including your UK pension, for 15 years. 

This can lead to substantial tax savings, but how it applies depends on the type of pension you receive. 

Bonus Read: Greece's rise as a top choice for expats is no coincidence—learn more about why retirees choose this Mediterranean haven. Before moving, understand the retirement visa requirements to ensure a smooth transition.

Let’s look at three common scenarios.

Use Case 1: You qualify for the UK State Pension

This is the most straightforward and common scenario for British retirees.

 Key Points:

• If you receive a UK state pension, you’re generally eligible for the 7% flat tax rate in Greece.

• Once you become a Greek tax resident, you can apply for a Non-Resident (NR) code from HMRC, so your UK pension will no longer be taxed at source.

• You’ll report your foreign income in Greece and be taxed locally at 7%, instead of under the UK tax bands.

 If you're planning to settle permanently, explore your options for buying property in Greece.

Example Savings:

• On a total annual income of £35,000, you could save around £2,000 per year.

• At £60,000, savings could exceed £7,000, and above £70,000, you might save over £10,000 annually.

📌 Note: When you become a Greek tax resident, you give up the UK personal allowance (currently £12,570). The 7% scheme generally becomes financially beneficial when your income exceeds approximately £20,000.

Use Case 2: Certain Government or Civil Service Pensions

Under the UK-Greece Double Taxation Agreement (DTA), standard UK government pensions—such as those from the armed forces or civil service—are always taxed in the UK and cannot benefit from Greece’s 7% flat tax regime.

However, Greece is unique in Europe for how it treats certain other public sector pensions. Pensions from the NHS and Fire Brigade (when paid by local authorities), as well as police, teachers, and the National Savings Bank, are usually considered “government pensions” elsewhere—but under Greek DTA, they are classified as non-government.

This means:

• These pensions can qualify for the 7% flat tax in Greece if you become a tax resident.

• You won’t pay double tax—if you’re still taxed in the UK, the treaty avoids duplication.

• This opportunity is not available in any other European country.

⚠️ Classification depends on the specific pension provider. Always confirm with a tax advisor to ensure eligibility. Navigating your move is easier with the right relocation services by your side.

Use Case 3: SIPP Without a UK State Pension

Things are more complex if your income comes only from a SIPP (Self-Invested Personal Pension).

What to Know:

• SIPPs are not a recognised pension structure in Greek law.

• To qualify for the 7% regime, the pension must be from a recognised occupational source.

• Applications based solely on a SIPP may be rejected unless you can clearly demonstrate that the pension qualifies under the scheme.

That said, if you also receive a UK state pension, your application is likely to be accepted.

✅ Tip: Work with a tax advisor experienced in UK-Greek matters to strengthen your application and avoid common pitfalls.

What If My Application Is Rejected?

If you’re not accepted into the 7% regime, your income will be taxed under the standard Greek tax brackets, which are progressive and can be significantly higher than 7%.

This makes careful planning and professional support even more important before moving. Once your taxes are sorted, explore how to settle down comfortably in Greece.

Other Frequently Asked Questions

Will I still receive UK pension increases while living in Greece?

Yes. Greece is part of the European Economic Area (EEA), so UK pension uprating continues to apply.

Can I still take the 25% tax-free lump sum from my pension?

Yes, but it’s recommended to take this before becoming a Greek tax resident, as the tax treatment could differ under Greek law.

How is non-pension income taxed?

In most cases, foreign income (pension or otherwise) is included in the 7% regime. However, UK rental income or other income types may still be taxed in the UK or taxed differently. Always check the specific income type.

Also, discover what other retirees wish they had known before relocating abroad.

Final Thoughts

Relocating to Greece as a UK pensioner can bring significant tax benefits, but eligibility depends on your pension type, residency status, and timing. Proper planning can help you unlock the advantages of the 7% scheme and avoid unexpected tax issues.

If you’re considering retirement in Greece from the UK, Mitos Relocation can guide you through the process, step by step.

👉 Want expert help?

Book a consultation with us to explore your options and plan your ideal retirement abroad.