Once you live in Greece, a foreign pension is taxed on the normal scale, at a flat 7% under Article 5B, or not at all here because the treaty gives it to the paying country. Which applies, and which is cheaper, depends on the pension. This guide runs the numbers. Who qualifies for the 7% and how to apply is covered in retiring to Greece: the 7% flat tax.
The short answer
- Normal scale (2026): 9% to 44%, minus a pension tax credit of up to €777. No solidarity contribution: it was abolished for all income from 2023.
- Article 5B: 7% flat on all foreign income for 15 years, no tax credit, paid once a year in December.
- Break-even: for a single pensioner, the 7% only wins above roughly €14,100 of foreign pension a year.
- Treaty first: private and state pensions are usually taxed in Greece; government pensions (German Beamte, UK civil service) usually stay in the paying country and are outside both the scale and the 7%.
- Foreign tax credit: only where the treaty lets both countries tax, or there is no treaty; capped at the Greek tax.
- Greek EFKA pension: Greek-source, so always on the normal scale.
Step 1: which country may tax the pension?
The treaty between Greece and the paying country decides first. Greek law and the 7% regime only apply to what the treaty leaves to Greece (Income Tax Code art. 5B(8)). The common patterns:
| Pension | Germany (1966 treaty) | UK (1953 treaty) |
|---|---|---|
| State pension | Greece only (Art. XII(1)) | Greece only (Art. X)* |
| Company / private pension | Greece only (Art. XII(1)) | Greece only (Art. X)* |
| Government service pension | Germany only (Art. XII(3)) | UK only (Art. VIII(1)) |
*Under Article X the UK exempts these pensions if they are subject to Greek tax, which includes the 7% regime.
The German public-funds rule applies whatever your nationality; the UK rule does not cover a Greek national who is not also British. US citizens are a special case: the 1950 treaty’s saving clause (Art. XIV(1)) lets the US keep taxing them, so they deal with both systems.
More detail: Germany–Greece tax treaty and moving to Greece from the UK.
Step 2: the normal Greek scale
Pensions fall under the same scale as salaries (art. 15, as amended by Law 5246/2025 from income year 2026):
| Taxable income | Rate |
|---|---|
| up to €10,000 | 9% |
| €10,000 – €20,000 | 20% |
| €20,000 – €30,000 | 26% |
| €30,000 – €40,000 | 34% |
| €40,000 – €60,000 | 39% |
| over €60,000 | 44% |
Article 16 then reduces the tax on salary and pension income by €777 for someone without dependent children. Above €12,000 of such income, the credit falls by €20 per €1,000, so it is gone at about €50,850.
One condition comes with the scale: spend 30% of your salary, pension and business income by card or other electronic means (capped at €20,000 of spending). If you fall short, the scale tax rises by 22% of the shortfall (art. 15(6)). Anyone aged 70 or over is exempt. The surcharge is added to the scale tax; the 5B rules do not mention it.
Step 3: the 7% regime
Under Article 5B you pay 7% on all foreign-source income, once a year by the last working day of December, with no tax credit. Income a treaty taxes differently, such as a government pension taxable only abroad, is excluded; Greek income stays on the scale (AADE decision A.1192/2026, art. 5).
Worked examples
All four: single, no children, tax resident in Greece, no other income, tax year 2026.
€18,000 private pension
- Normal scale: €900 + €1,600 = €2,500, minus credit €657 = €1,843 (10.2%).
- 7%: €1,260.
- Saving with 5B: about €580 a year.
€35,000 private pension
- Normal scale: €900 + €2,000 + €2,600 + €1,700 = €7,200, minus credit €317 = €6,883 (19.7%).
- 7%: €2,450.
- Saving: about €4,430 a year.
€60,000 private pension
- Normal scale: €900 + €2,000 + €2,600 + €3,400 + €7,800 = €16,700 (27.8%); the credit has run out.
- 7%: €4,200.
- Saving: about €12,500 a year.
German civil servant: €32,000 Beamtenpension + €9,000 statutory pension
- The Beamtenpension is taxed only in Germany. Greece neither taxes it nor brings it into the 7%, and the treaty gives Greece no progression clause to count it when setting the rate on the rest.
- On the Greek side only the €9,000 statutory pension counts.
- Normal scale: 9% of €9,000 = €810, minus credit €777 = €33.
- 7%: €630.
- Here the 7% costs about €600 a year more.
Summary
| Foreign pension (taxable in Greece) | Normal scale | 7% regime | Better |
|---|---|---|---|
| €9,000 | €33 | €630 | Normal |
| €18,000 | €1,843 | €1,260 | 7% |
| €35,000 | €6,883 | €2,450 | 7% |
| €60,000 | €16,700 | €4,200 | 7% |
The break-even logic
Between €12,000 and €20,000, tax on the scale is 0.22 × income − €2,117 (the 20% band plus the shrinking credit). That equals 7% at about €14,100. Below it the scale wins; above it the 7% wins, and every extra €1,000 of pension adds €220 to €440 of normal tax but only €70 under 5B.
The test runs per person: spouses file one E1, but each is taxed on their own income. A couple with €15,000 each pays about €2,370 on the scale and €2,100 under 5B: barely worth the lock-in.
When the 7% is not worth it
- Small pension: below about €14,100 of foreign pension that Greece may tax.
- Mostly a government pension: if the treaty leaves the bulk abroad, only the remainder is in play, often a small one.
- High foreign tax: where the source country also taxes the pension, its tax is credited only up to the Greek tax. If the foreign tax already exceeds what the normal Greek scale would charge, there is no Greek top-up to save, and 5B gains nothing.
- Foreign dividends: taxed at 7% under 5B instead of 5%.
- You may need flexibility: revoking is final; you cannot return to 5B.
Foreign tax credit
Greece gives a credit for foreign tax only where the treaty lets both countries tax the income, or where there is no treaty (art. 9; A.1192/2026, art. 5). It applies on the normal scale and under 5B alike, capped at the Greek tax on that income. Where the treaty gives the pension to Greece alone, as for German and UK private and state pensions, you claim exemption in the paying country instead: in the UK with form DT-Individual; in Germany the Finanzamt Neubrandenburg handles pensioners abroad and may ask for a Greek residence certificate.
If you also have a Greek EFKA pension
A pension from e-EFKA, for example for earlier work in Greece, is Greek-source income: always on the normal scale, with tax withheld monthly. On the scale, it and your foreign pension are added together, pushing the foreign pension into higher bands; under 5B the foreign part stays at 7%. That makes the 7% more attractive.
Everything ends up on your annual return; see filing the E1 as a foreigner. Whether Greece taxes you at all depends on tax residence and the 183-day rule.
At taxomade we run this comparison with your actual pension statements and prepare and file your Article 5B application and annual return as part of ongoing bookkeeping, in English, German or Greek. Send us a message on WhatsApp or through our contact form for a free check.
FAQ
How much tax do I pay on a foreign pension in Greece?
On the normal scale, 9% up to €10,000, then 20%, 26%, 34%, 39% and 44% above €60,000, minus a pension tax credit of up to €777 that phases out above €12,000. A single pensioner with €18,000 pays about €1,840 (10%), with €35,000 about €6,880 (20%). Under the Article 5B regime it is a flat 7% instead.
Is the 7% flat tax always better for pensioners in Greece?
No. For a single pensioner with no other income, the normal scale is cheaper up to a foreign pension of about €14,100 a year, because the pension tax credit wipes out most of the 9% band. Above that, 7% wins, and the gap grows quickly.
Are government pensions taxed in Greece?
Usually not. Most tax treaties leave pensions for government service taxable only in the paying state: German civil-service pensions stay in Germany, UK civil-service and armed-forces pensions in the UK (unless you are a Greek national without UK nationality). They also fall outside the 7% regime.
Is my German statutory pension taxed in Greece?
Yes. Under Article XII of the 1966 Germany–Greece treaty, statutory, company and private pensions are taxed only in the country of residence, so in Greece once you live here. Pensions from German public funds, such as Beamtenpensionen, are taxed only in Germany.
Do I get a credit for foreign tax on my pension in Greece?
Only where the treaty lets both countries tax the pension, or where there is no treaty. Then the foreign tax is credited against the Greek tax on that income, under the normal scale or the 7% regime, but never beyond the Greek tax; the excess is not refunded.
Rules as of November 2026 (sources: Income Tax Code arts. 5B, 9, 15 and 16, as amended by Law 5246/2025 and Law 5313/2026, art. 94; AADE decision A.1192/2026; Germany–Greece treaty of 18 April 1966, arts. XII and XVII; UK–Greece convention of 25 June 1953, arts. VIII, X and XIV; US–Greece convention of 20 February 1950, art. XIV).