Calculate income tax savings for Greeks returning from abroad. Law 4758/2020 Article 5C grants 50% income exemption for 7 years for qualifying returnees.
Enter your expected annual gross salary after returning to Greece to see your income tax under the 50% exemption regime versus the standard system, and the total saving over 7 years.
Annual net (50% exemption)
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Income tax (50% regime)
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Annual tax saving
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7-year total saving (est.)
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Net under standard system
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Your breakdown
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The returning expat 50% exemption in Greece
Law 4758/2020 introduced two special tax regimes as part of a broader effort to attract skilled Greeks living abroad and foreign talent. Article 5C targets employees and self-employed workers. Qualifying returnees pay income tax on only half their income for 7 years, while still paying EFKA on the full gross. The exemption was designed to offset the relatively high marginal tax rates in Greece for mid-to-upper income earners.
Example: 50,000 EUR gross salary
Standard system: EFKA 6,935 EUR, taxable income 43,065 EUR, income tax 9,560 EUR, net 33,505 EUR. Under 5C: EFKA unchanged 6,935 EUR, taxable income 21,533 EUR (50% of 43,065), income tax 3,529 EUR, net 39,536 EUR. Annual saving: 6,031 EUR. 7-year total saving: approximately 42,217 EUR (assuming same salary throughout).
How to apply for the Article 5C regime
Applications are submitted to your competent AADE tax office with supporting documents: foreign tax residence certificates for the qualifying 5-year period, a Greek employment contract or business registration, and a transfer of tax residence form. Applications are typically filed in the first year of return and must be submitted within the relevant deadlines. AADE processes applications and issues a decision; approved taxpayers then file annual returns claiming the exemption.
Frequently asked questions
Who qualifies for the 50% income exemption for returning expats in Greece?
To qualify for the Article 5C exemption under Law 4758/2020, you must meet three conditions. First, you must transfer your tax residence to Greece in the application year. Second, you must not have been a Greek tax resident for at least 5 of the 6 years immediately preceding the year of transfer (i.e., you were living and paying taxes abroad for most of the last 6 years). Third, you must begin working as an employee for a Greek employer or start a business in Greece in the application year. Greek nationals returning from abroad as well as EU and non-EU citizens are eligible if they meet these criteria.
How is the 50% exemption applied in practice?
Under Article 5C, 50% of qualifying employment or business income is exempt from Greek income tax. The remaining 50% is taxed under the standard 5-bracket system. EFKA social insurance still applies to the full gross salary at 13.87%. The exemption is applied annually for up to 7 consecutive tax years. Each year you must confirm eligibility by maintaining Greek tax residency and continuing to work in Greece. The annual tax return (E1 form) filed via Taxisnet records the exempted income in the relevant field, and the reduced tax is computed automatically.
Can the 50% exemption be combined with other tax benefits in Greece?
The 50% exemption under Article 5C cannot be combined with Article 5B (the 7% flat rate regime) since both are special incoming resident regimes for the same type of taxpayer. However, the exemption can be combined with other standard deductions and credits, such as the resident tax credit (up to 777 EUR), which applies to the taxable 50% slice if that falls within the relevant income range. The exemption also reduces the base for the solidarity contribution calculation (where applicable), providing an additional saving for public sector returnees.
What happens after the 7-year exemption period ends?
After the 7-year exemption period, you are taxed under standard Greek income tax rules on 100% of your income, with EFKA at 13.87% and the 5-bracket income tax (9% to 44%) applying in full. There is no automatic transition regime. Some returning expats time large income events (business sales, large consulting contracts) within the 7-year window to benefit from the halved rate. After expiry, maintaining Greek tax residency means your worldwide income is assessed in Greece, though double taxation treaties with other countries typically prevent double taxation.