Greece's 50% Tax Break (Article 5C) in 2026: Who Really Qualifies

Short answer: Article 5C makes half of your Greek salary or business income tax free for 7 years, if you move your tax residence to Greece and work here for a Greek employer, a Greek branch of a foreign company, or your own business registered in Greece. If you work remotely for a foreign company with no presence in Greece, you normally do not qualify. And because social security is not reduced, the real saving is smaller than half of everything you pay.

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The “50% tax break” is one of the most shared facts about moving to Greece. It is real, and it can be worth thousands of euros a year. But it is also one of the most misunderstood. Here is how it works in 2026.

1. The four conditions

You need all four:

1. You were not a Greek tax resident in 5 of the last 6 years before the move. One year of Greek residency in that window is fine; two is not.
2. You move from an EU or EEA country, or from a country that exchanges tax information with Greece. There is no published list. The country list in the myAADE application decides. The UK, US, Canada and Australia are very likely covered.
3. You work in Greece in one of the ways in section 2.
4. You commit to stay at least 2 years.

2. Which work counts

Employees qualify if they work for:

• a Greek company or other Greek legal entity
• the Greek public sector (included since May 2026)
• the Greek branch or liaison office of a foreign company

Remote employees of a foreign company with no presence in Greece do not qualify. This covers most people on the Digital Nomad Visa who stay on a foreign payroll. The law asks for employment in Greece with a Greek entity or a Greek branch, and AADE’s own guidance repeats it. Our guide to working from Greece for a company abroad explains how that salary is taxed instead.

Self-employed people can qualify if they register their business in Greece. If most of your clients are abroad, the position is not settled: the law covers business income that arises in Greece, and there is no official ruling yet on foreign clients. That needs a case by case check. Our freelancer tax guide covers registration and social security.

Good news from 2025: until July 2025 the job also had to be a “new position” for the employer. That rule was removed on 28 July 2025.

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3. What is covered, and what is not

• Covered: 50% of your Greek employment income and/or business income is exempt from income tax, for 7 tax years. It cannot be extended.
• Not covered: rent, dividends, interest, capital gains and foreign income are taxed normally.
• Not reduced: social security (EFKA) is paid in full. For employees that is 13.37% of gross pay.

4. What you really save

Half of your salary (after EFKA) is taxed on the normal scale, and the other half is tax free. For a single employee over 30 with no children and no other income, in 2026:

The higher your income, the more it is worth. If you are under 30 or have children, you already pay lower rates, so your saving is smaller. Your own figure depends on your situation, so treat these as a guide.

5. How and when to apply

You apply online in myAADE, yourself or through an accountant, since October 2025. If your job is registered in the ERGANI system, the check is often instant. If not, you upload documents such as your contract, and AADE decides within 60 days.

The deadline depends on when you start:

• Start work or business by 2 July: apply by 31 December of the same year, and 5C covers that year.
• Start after 2 July: apply by 31 December of the following year, and 5C starts that following year.

Apply late and you lose a year of the benefit, and that year still counts toward the 7.

If you are self-employed, 5C does not end the paperwork. You still file an E1 every year and pay EFKA every month, for all 7 years. Our Freelancer Retainer covers that from €79 a month, all in English.

If you change jobs, tell AADE through the same application. If a job ends, you keep 5C only if you start a new Greek job or business within 12 months.

6. Common mistakes

1. Thinking the Digital Nomad Visa gives you 5C. It is an immigration permit. It does not give you the tax break.
2. Missing the deadline and losing a year.
3. Not becoming a Greek tax resident properly, or staying resident in your old country too. Both countries can then claim you, and the tax treaty tie-breaker has to settle it.
4. Expecting half of everything. Social security, rent and investment income are not reduced.
5. Not having proof of your years abroad. If AADE does not already have it, you need foreign tax residence certificates for the missing years.

Want to know if you qualify?

We check your situation against every 5C condition and tell you in writing: yes, no, or what would need to change. If you qualify, we file the application in myAADE for you. A licensed Greek accountant stands behind every answer. 5C eligibility check: €49, credited in full if we go on to file your application. Fixed price, no “individual quote”: you get the filing price in writing with your answer, before you commit to anything.

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Frequently asked questions

Does the 50% tax break apply to remote workers? Not if you are employed by a foreign company with no Greek presence. It can apply if you work through a Greek employer, a Greek branch, or your own business registered in Greece.

Does the Digital Nomad Visa qualify me for 5C? No. The visa is an immigration status. 5C depends on who you work for and where your business is registered.

Is my social security cut in half too? No. EFKA contributions are paid in full. Only income tax is reduced.

Can I combine 5C with the 5A or 5B regimes? Yes. AADE confirms you can be in 5C and in 5A or 5B at the same time, as long as you meet the conditions of each one. 5A and 5B cannot be combined with each other.

How long does it last? Up to 7 tax years. It cannot be extended.

What if I leave Greece within 2 years? You drop out of the regime from that year on. What happens to the years you already benefited from is not spelled out in the rules, so check before you leave.