Understanding Tax Implications for Indian Expats Living in Greece

As an Indian expat living in Greece, one of the essential aspects to consider is how the tax system works and how it impacts your finances. Understanding the tax laws in Greece will not only help you comply with regulations but also allow you to make more informed decisions regarding your income and business and send money back home to India. This article will break down the key tax implications for Indian expats living in Greece and offer practical advice on managing their financial obligations. 

Tax Residency in Greece: What Does It Mean for Indian Expats?

The first step in understanding your tax obligations in Greece is determining whether you are a tax resident. Tax residency plays a key role in whether you’re subject to Greek taxes on your worldwide income or only on income earned within Greece.

Who is Considered a Tax Resident in Greece?

In Greece, an individual is considered a tax resident if they meet any of the following criteria:

• Stay in Greece for more than 183 days in a calendar year: This is the most straightforward way to be considered a tax resident.
• Have a permanent home in Greece: Even if you are in Greece for fewer than 183 days, you may still be considered a resident if you have a home in Greece that you use as your primary residence.
• Economic ties: If your business or financial activities are primarily based in Greece, you may be considered a tax resident, even if you do not meet the above criteria.

As an Indian expat, it’s essential to understand whether your residency status requires you to pay taxes on your global income or just your Greek income. If you qualify as a tax resident, Greece will likely tax you on your worldwide income, including money earned outside the country, such as income from India.

Taxation of Income for Indian Expats in Greece

Once you have established whether you are a tax resident, it’s crucial to understand how income is taxed in Greece. The Greek tax system taxes both individuals and businesses. Here’s what you need to know:

1. Personal Income Tax Rates in Greece

Greek personal income tax is progressive, meaning the more you earn, the higher your tax rate. The rates for 2025 are as follows:

• Up to €10,000: 9%
• €10,001 - €20,000: 22%
• €20,001 - €30,000: 28%
• €30,001 - €40,000: 36%
• Above €40,000: 44%

If you earn income in Greece, these rates will apply to your earnings, depending on how much you make.

2. Social Security Contributions

In addition to income tax, you must also pay social security contributions, which fund Greece’s public pension system. The social security rates vary depending on whether you are employed or self-employed. As an employee, the contribution rate is typically around 16-17%, with the employer contributing a similar amount. If you are self-employed, the contribution rates can be higher.

3. Taxation of Foreign Income

As a tax resident, your foreign income may also be taxable in Greece. This includes income earned from businesses, investments, or property in India. However, Greece has a double taxation agreement (DTA) with India, ensuring you will not be taxed twice on the same income.

If you’re earning income in India, the taxes you pay there may be credited against your Greek tax liability. This is designed to avoid the double taxation of the same income. You can apply for tax credits or exemptions under the terms of the DTA.

Reporting Foreign Income in Greece

As an Indian expat, you must report this income to the Greek tax authorities if you earn money in India or other countries. Here are some points to keep in mind:

• Declare worldwide income: As a tax resident, you must declare all your income, including money earned in India. This includes wages, pensions, business income, and rental income from properties in India.
• Foreign tax credits: You can claim foreign tax credits for taxes paid in India to avoid double taxation. If you’ve paid taxes in India, you can offset that amount against what you owe in Greece.

Managing Remittances: Remitting Money to India

Many Indian expats in Greece regularly send money back to their families in India. Whether it’s to support loved ones or make investments, understanding how to send money efficiently and safely is essential.

If you're planning to send money to India, here are a few options:

• ACE Money Transfer: A reliable and cost-effective service for making a money transfer from Greece to India. It allows you to send money quickly and securely from Greece. The process is quick, and your family in India can receive the funds within hours.
• Bank Transfers: While traditional bank transfers are a secure option, they often involve high fees and longer processing times. Banks might also offer poor exchange rates, meaning you send more money, but your family receives less.
• Online Payment Platforms: Services like PayPal or Wise (formerly TransferWise) are also viable for sending money to India. However, they may not always offer the best exchange rates, and some may charge service fees.

Using a service like ACE Money Transfer offers several benefits, including:

• Competitive exchange rates
• Low transfer fees
• Fast, secure transactions

Important Tax Considerations When Sending Money to India

When you send money to India online, the transfer itself has no immediate tax implications. However, there are a few things to be mindful of:

• Gift Tax: If you send large sums of money to family members in India, it may be classified as a gift. Under Indian tax laws, gifts received from a non-relative exceeding ₹50,000 in a financial year may be subject to tax. However, the gift is generally exempt from tax in India if the recipient is a close relative, such as a parent or sibling.
• Foreign Remittances Reporting: While there is no tax on receiving foreign remittances in India, it is required by law that all foreign remittances above ₹10 lakh (approximately £10,000) in a financial year be reported to the Indian tax authorities. This is mainly to track large sums of foreign exchange entering the country.

Living as an Indian expat in Greece offers unique opportunities, but it’s essential to understand the tax system to avoid any surprises. By understanding your residency status and the tax rates that apply to your income, you can better plan your finances and remain compliant with Greek laws.

Additionally, services like ACE Money Transfer make it easy to send money online to India from Greece and stay connected with your family back home while minimizing fees and delays. Whether paying taxes in Greece or sending money to your loved ones, planning and understanding your financial obligations will help you make the most of your expat experience.

FAQs

How do I determine if I am a tax resident in Greece? 

You are considered a tax resident in Greece if you stay there for more than 183 days in a calendar year, have a permanent home, or have economic ties in Greece.

Do I have to pay tax on income earned in India if I live in Greece?

As a tax resident of Greece, your global income, including income from India, may be subject to Greek taxation. However, Greece has a double taxation agreement with India, which allows you to claim foreign tax credits for taxes paid in India.

Can I send money to India from Greece without tax implications? 

Yes, sending money to India is not subject to tax in Greece. However, be aware of gift tax in India if you send large sums, as gifts over ₹50,000 from non-relatives may be taxed.

What are the best ways to send money to India from Greece?

The best way to send money to India is through ACE Money Transfer, which offers competitive exchange rates, low fees, and fast transfers. You can also consider traditional bank transfers or online payment platforms.

What tax credits can I claim if I pay taxes in India?

Under the double taxation agreement between India and Greece, you can claim tax credits for any taxes paid in India. This will reduce your tax liability in Greece, ensuring you don’t pay double taxes on the same income.