Retiring to Greece from the US: What Happens to Your Social Security and Pensions?
Sep 27, 2026
Greece's 7% regime works differently for Americans. Here is how Social Security, 401(k)s and IRAs are taxed.
Thinking of retiring in Greece from the US? Greece's 7% flat tax for foreign pensioners is usually the first thing Americans hear about, and the benefit is real: move your tax residence to Greece, meet the conditions, and Greece taxes your foreign income at a single 7% rate for up to 15 years.
What most summaries leave out is that the regime works differently for Americans than for almost anyone else. The United States taxes its citizens wherever they live, so moving to Greece does not take you out of the US tax system the way it takes a British pensioner out of the UK's (we covered the UK side in our guide for people retiring in Greece from the UK). For a US citizen, the 7% regime does not replace US tax. It limits what Greece adds on top of it.
This guide covers what happens to each type of US retirement income when you move to Greece - Social Security, 401(k)s and IRAs, government pensions and Roth accounts - with two worked examples, the documents Americans need for the application, and the US obligations that continue after the move.
⚠️ Please note: This article is for informational purposes only and does not constitute tax advice. Tax laws change, and your personal situation matters. Always consult a qualified professional on both the US and the Greek side before making decisions.
At a glance
US citizens keep filing US tax returns after moving to Greece, and Social Security, 401(k) and IRA income stays taxable in the US.
Greece credits US federal tax against its own tax on US-source income, so across the two countries you broadly pay whichever is higher.
Under Greece's 7% regime, the Greek layer is often small or zero. Under the standard Greek scale (9% to 44%), it can be substantial.
Social Security retirement benefits and employer-linked plans such as 401(k)s can qualify you for the 7% regime. A Roth IRA cannot.
US government pensions follow a separate treaty rule and are generally exempt from Greek tax.
The Two Rules That Shape Everything
Two principles decide how your retirement income is taxed once you live in Greece. Almost everything else in this guide follows from them.
The US keeps taxing you. The US taxes its citizens (and green card holders) on their worldwide income regardless of where they live. The US-Greece income tax treaty, which dates from 1950, confirms this: its "saving clause" allows each country to tax its own citizens and residents as though the treaty did not exist. You will keep filing a US federal return every year, and your Social Security, 401(k) and IRA income remains taxable in the US.
Greece taxes you as a resident, then credits US tax. Once you become a Greek tax resident, Greece taxes your worldwide income. To prevent double taxation, of the treaty requires Greece to allow a credit for US tax on income from US sources, up to the amount of Greek tax on that same income. In practice, you pay US federal tax first, and that tax is then offset against the Greek bill.
Put together, the outcome for a US citizen is broadly this: on each item of US income, you end up paying roughly whichever is higher across the two countries - the US federal tax or the Greek tax. That is why the rate Greece applies matters so much. Under Greece's standard income tax scale, the Greek tax will usually be higher than your US tax, and you pay the difference to Greece. Under the 7% regime, your US federal tax will often already be close to or above 7%, and Greece adds little or nothing.
📌 Note: The Greek credit covers US federal income tax only. US state income tax cannot be credited against Greek tax, which is why state tax residency deserves attention before the move (more on this below).
A Quick Recap of Greece's 7% Regime
Under Article 5B of the Greek Income Tax Code, a person who transfers tax residence to Greece and receives a foreign pension can pay a flat 7% on all foreign-source income for up to 15 tax years. The conditions are:
You have not been a Greek tax resident in five of the six years before the move.
You are transferring your tax residence from a country that has a tax administrative-cooperation agreement with Greece. The US qualifies.
You receive a pension that is already in payment, either as regular payments or as a lump sum, from a state scheme, a statutory professional fund, or an employer-linked pension plan. There is no minimum amount.
The 7% covers all foreign-source income, not only the pension: US dividends, interest and capital gains fall inside it too. Greek-source income, such as rent from a Greek property, is taxed under the normal Greek rules.
For the full mechanics of the regime itself, see our guide to Greece's 7% tax for pensioners.
What Happens to Each Type of US Retirement Income
The regime is simple on paper, but which of your US income counts, and how easy it is to prove, varies considerably by income type.
Use Case 1: Social Security Retirement Benefits
For most Americans, this is the strongest basis for a 7% application.
Key points:
You keep receiving it. US citizens can receive Social Security in Greece without restriction. Payments can go to a US bank account or directly to a Greek bank account through the Social Security Administration's international direct deposit programme, which covers Greece. Cost-of-living adjustments continue as normal.
It qualifies for the 7% regime. Social Security retirement benefits are accepted as a qualifying pension. Spousal and disability benefits are not accepted as the basis for eligibility, so if one partner's only income is a spousal benefit, check how that partner will be treated before assuming both of you are covered.
It stays taxable in the US. Up to 85% of your benefit is taxable federally, depending on your other income. The US tax you pay on it is credited in Greece against the 7%.
It is taxed in Greece. The 1950 treaty does not exempt Social Security from Greek tax, so as a Greek tax resident it forms part of your foreign income. Under the 7% regime, that means 7% of the benefit, less the US federal tax already paid on it.
SSA paperwork continues. Beneficiaries living abroad receive a questionnaire (Form SSA-7162) every one to two years, and the SSA has suspended payments to people abroad who did not return it. The Federal Benefits Unit at the US Embassy in Athens handles Social Security matters for people living in Greece.
📌 Note: If Social Security is your only or main income, your US federal tax on it may be zero. In that case Greece's 7% applies in full, and you pay a Greek tax bill you did not have in the US. See Example 2 below.
Use Case 2: 401(k) and Traditional IRA
These usually qualify, but they carry the heaviest evidence burden.
Greek law accepts pensions from state insurance bodies, statutory professional funds and group or employer pension plans. Self-invested products without an employer link are not accepted, even when they are labelled as retirement accounts. A 401(k) has that link by design. A traditional IRA built from a rollover of an employer plan can show it too, while an IRA funded only with personal contributions is harder to present as an employer-linked pension. In every case, the link has to be evidenced rather than assumed.
Statements from both the employer and the plan administrator confirming that the employer contributed to the plan are core for the application.
Key points:
Distributions remain taxable in the US as ordinary income, and the US federal tax is credited in Greece against the 7%.
Payments can be regular withdrawals or a lump sum, and there is no minimum amount.
Use Case 3: US Government Pensions (Federal, Military, State and Local)
Government pensions follow a different treaty rule. Pensions paid by the US government, or by a state or local government, for services rendered to that government are exempt from tax in Greece. They remain taxable in the US only.
Key points:
This typically concerns federal civil service annuities, military retired pay, and pensions from state or local government employment. Whether a specific plan falls inside the treaty definition depends on who pays it and on what basis, so the plan documents matter.
A pension that is exempt in Greece is not taxed at 7%, because Greece does not tax it at all.
Many former government employees also receive Social Security or hold a 401(k)-type plan. The 7% regime can still be relevant for that other income, and for investment income.
The 1950 treaty is old and its saving clause is broadly drafted, so we can confirm the Greek treatment of your specific pension with our Greek accountant before relying on the exemption.
Use Case 4: Roth IRA
The Roth IRA is the account most likely to catch Americans out.
Key points:
A Roth IRA does not qualify as the pension that gets you into the 7% regime. It is a self-directed account with no employer link.
Greece does not recognise the Roth's US tax-free status. Withdrawals made while you are a Greek tax resident can be treated as taxable income in Greece, even though they are tax-free in the US, and there is no US tax to credit against the Greek amount.
Some people review their Roth holdings, and the timing of withdrawals, before becoming Greek tax residents. It is a decision to make with an adviser who understands both systems, because it depends on the size of the account and on the rest of your plan.
What Doesn't Change: Your US Obligations
Moving to Greece does not end a US citizen's obligations at home. These continue after the move:
Annual US tax return. Form 1040 every year, reporting worldwide income, including anything earned in Greece.
FBAR. If your non-US accounts, including a Greek bank account, exceed $10,000 in aggregate at any point in the year, you need to report this.
FATCA. For people living abroad, the filing thresholds are $200,000 at year-end or $300,000 at any time during the year for single filers, and $400,000 or $600,000 for married couples filing jointly.
State tax residency. A state can keep taxing you if you have not formally broken residency, and Greece will not credit state tax. California, New York, Virginia, New Mexico and South Carolina are among the states known for making this harder. The ties that matter typically include your home, driver's licence, voter registration and bank accounts.
If the 7% Regime Doesn't Apply
If you do not qualify, decide not to apply, or your application is not approved, it is not the end of the world. You are taxed under Greece's standard rules, and for many people the gap is smaller than the headline suggests.
Under the standard rules, pension income is taxed on the progressive scale: 9% on the first €10,000, then 20%, 26%, 34% and 39%, rising to 44% above €60,000. Pension income is where the 7% regime makes its biggest difference.
Investment income, however, is taxed separately and often lightly. Dividends are taxed at 5%, and gains on listed shares where you hold less than 0.5% of the company are generally exempt, which covers most ordinary share trading. For someone whose income comes mainly from a portfolio rather than a pension, the standard rules can cost less than 7%. The US credit applies under either route, so you are not taxed twice on the same US income.
Because the 7% regime runs for up to 15 years and covers all your foreign income, it is worth modelling both routes against your actual mix of income before choosing.
We run this comparison with American clients as part of planning the move, working from their real accounts rather than headline rates. Work with us to compare your options
Our Take
For Americans, the 7% regime is worth understanding precisely because it is so often oversold. It does not make US tax disappear, and anyone expecting their total tax to fall to 7% may be disappointed. What it does is stop Greece from adding a second, often much larger layer of tax on top of the US bill, particularly on pension income.
The people who need to plan hardest sit at the edges: those living mainly on Social Security, for whom the move can create a Greek tax that did not exist before; those with large Roth balances, which Greece does not treat as tax-free; former government employees, whose pensions follow a different treaty rule; people whose income is mostly from investments, for whom the standard rules may be the better route; and anyone leaving a state that does not let go easily. In each case, the outcome depends less on the 7% headline and more on sequencing: which accounts you draw from, in which year you become resident, and which documents are ready before the October deadline.
That sequencing is what we work through with American clients every day, across both the US and the Greek side of the move.
Frequently Asked Questions
Can I receive US Social Security while living in Greece?
Yes. US citizens can receive Social Security retirement benefits in Greece without restriction. Payments can be made to a US bank account or directly to a Greek bank account through the SSA's international direct deposit programme, and cost-of-living adjustments continue to apply.
Is US Social Security taxed in Greece?
Yes, if you are a Greek tax resident, and even if it is not taxed in the US. The 1950 US-Greece tax treaty does not exempt Social Security from Greek tax. Under the 7% regime it is taxed at 7%, and any US federal tax you paid on it is credited against that amount. If your US tax on it is zero, the full 7% is payable in Greece.
Do I still have to file US taxes if I retire to Greece?
Yes. US citizens file a federal tax return every year wherever they live, reporting worldwide income. You may also need to report your Greek bank accounts and other foreign assets to the US authorities, and file a state return if you have not broken state residency.
Does the 7% regime mean Americans pay only 7% tax in total?
No. The US continues to tax your income. Greece credits US federal tax against its own tax, so in practice you pay roughly the higher of the two on each item of US income. The 7% regime keeps the Greek layer small; it does not reduce your US tax.
What is the deadline to apply for Greece's 7% regime?
31 October of the year for which you want the regime to apply, with supporting documents due by 30 November. If you transfer your tax residence to Greece by 2 July, you can apply for that same year; if you move later, you apply for the following year. Because the US documents take time to gather and apostille, it is best to start a few months before you move.
Does a Roth IRA qualify for Greece's 7% tax regime?
No. A Roth IRA has no employer link, so it is not accepted as a qualifying pension. Greece also does not recognise its US tax-free status, so withdrawals made while you are a Greek tax resident may be taxable in Greece.
I'm a Greek-American dual citizen. Can I still use the 7% regime?
Yes, if you meet the conditions. Eligibility depends on tax residence, not citizenship: you must not have been a Greek tax resident in five of the six years before the move. Holding a Greek passport does not by itself make you a Greek tax resident.
Does Social Security count toward the income requirement for a Greek residence visa?
Yes. Pension income, including Social Security, counts toward the income requirement for Greece's Financially Independent Person (FIP) visa. The requirement is currently €3,500 a month for a single applicant, increasing by 20% for a spouse and 15% for each child.
For Americans, the 7% regime is less a tax cut than a cap on what Greece adds. Whether it works for you depends on your mix of income, your state, and how the move is sequenced. Helping American clients through this is a core part of what we do at Mitos. We work on both sides of the move: the US certificates, letters and apostilles, and the Greek application, timeline and residence. If you are planning to move in the next year, a head start of a few months makes the whole process smoother. Talk to Mitos about your move
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