If you hold a passport from an EU/EEA member state and work remotely, Greece is arguably the most financially attractive destination in Europe. Thanks to freedom of movement, you do not have to worry about complex visas (unlike non-EU digital nomads). And thanks to Article 5C, you can legally exempt 50% of your income from Greek tax.
Here is the exact blueprint on how EU remote workers can move to Greece and claim the 50% tax break.
Why EU Citizens Have the Advantage
As discussed in our DNV vs 5C Guide, Non-EU citizens on a Digital Nomad Visa are blocked from getting the 50% tax break because their visa forbids them from entering the Greek labor market or setting up a local business.
As an EU citizen, you have the fundamental right to move to Greece and establish a business. This allows you to easily fulfill the core requirement of Article 5C: Starting a new business activity in Greece.
The “B2B Freelancer” Setup
If you are currently employed remotely by a company in Germany, the UK, or the US, you cannot simply move to Greece, keep your foreign employment contract, and ask the Greek tax office for a 50% discount.
To get the tax break, your income must be channeled through the Greek tax system. The standard, fully legal method is the B2B Freelancer Setup:
- You resign from your standard employment contract (or negotiate a transition).
- You set up a Greek Sole Proprietorship (ατομική επιχείρηση).
- You sign a B2B (Business-to-Business) service agreement with your former employer (who is now your client).
- You invoice them monthly from your Greek entity.
Because you have started a “new business activity” in Greece, you fulfill the Article 5C requirements.
Step-by-Step Guide to the Tax Break
Step 1: Prove Your Past Non-Residency
Before you pack your bags, ensure you qualify. You must prove that you were not a Greek tax resident for at least 5 of the 6 years prior to your move. You will need official tax residency certificates from your previous home country (e.g., Germany or Spain) bearing an Apostille stamp and officially translated into Greek.
Step 2: Relocate and Get Your AFM
Move to Greece and register your long-term stay. You will need a rental contract to prove your Greek address. With this, you can obtain your AFM (Greek Tax Number).
Step 3: Register Your Sole Proprietorship
Work with a local accountant to open your freelance business. You will need to register with the commercial registry (GEMI) and the social security fund (EFKA). You must select the appropriate “KAD” codes that describe your remote services (e.g., IT consulting, marketing, design).
Step 4: Apply for Article 5C
Once your business is active, your accountant will submit your application for the Article 5C regime to the relevant tax authority. Since the 2025 reform, the application is submitted digitally via the myAADE portal, where eligibility is verified automatically and the approval or rejection decision is issued electronically. The hard deadline for this application is July 31st of the year you start your business.
Crucial Note: Since the law changed in 2025, you no longer need to prove that you are filling a “newly created job position,” which makes this process drastically simpler for freelancers.
Step 5: Issue Invoices and Pay Taxes
You will use the Greek e-invoicing system (myDATA) to issue invoices to your foreign client. Because your client is a business outside of Greece, these invoices are typically subject to 0% VAT (Reverse Charge).
When it is time to file your annual Greek tax return, 50% of your net business profit will be entirely exempt from income tax.
The Financial Impact
The savings are immense. Because Greek income tax is progressive (scaling up to 44%), halving your taxable income keeps you in the lowest tax brackets.
For example, on a €70,000 income, the standard tax is over €21,000. Under Article 5C, the tax is roughly €7,200.
Want to see exactly how much you would save? Try our Article 5C Tax Calculator to run your own numbers.
[!NOTE] Disclaimer: This article is for informational purposes only and does not constitute individual legal or tax advice. Immigration laws and tax regulations are subject to change. Please consult a qualified professional before making relocation decisions.