Pakistan’s 10% Tax On Remittances – How It Affects Greek-Based Workers

Sending money to loved ones back home is a crucial part of life for many Pakistani expatriates working in Europe. However, recent tax changes in Pakistan, particularly the introduction of a 10% withholding tax on foreign remittances not sent through formal channels, have left many overseas Pakistanis – especially those based in Greece – concerned.

In this article, we’ll explore what this new tax means, how it affects workers in Greece, and how you can continue to send money to Pakistan online from Greece or any other country without unnecessary deductions.

Understanding The 10% Tax On Remittances

Pakistan's Federal Board of Revenue (FBR) implemented a 10% tax in 2023 on unexplained or undocumented foreign remittances. This tax applies to incoming funds that lack proper banking or official documentation. It targets remittances that do not come through formal financial channels like banks or authorised money transfer operators (MTOs).

Key Points:

• The tax aims to curb money laundering and increase transparency.
• It only affects undocumented remittances or those without source declaration.
• Formal remittance channels, like ACE Money Transfer, remain unaffected.

This is great news for overseas workers using legitimate services to send money to their homes.

Impact On Greek-Based Pakistani Workers

Many Pakistani workers in Greece support their families in Pakistan through monthly remittances. The introduction of this tax has caused confusion and anxiety among them.

Here’s how it affects them:

• Fear of Extra Charges: Some senders worry that the 10% deduction applies to all remittances, which is incorrect.
• Informal Channels at Risk: Those who send money through informal agents (Hundi/Hawala) are more likely to face deductions or penalties.
• Dependence on Reliable Services: Greek-based workers are now more inclined to use legal and secure platforms like ACE Money Transfer to avoid taxation issues.

Why Is This Important?

According to the State Bank of Pakistan, remittances from Europe have shown consistent growth. With over 80,000 Pakistanis residing in Greece, their contributions are significant.

How To Avoid The 10% Tax: Smart Sending Tips

Fortunately, avoiding this tax is simple if you send money through proper, regulated channels.

Follow these steps to stay tax-free:

• Use licensed services like banks or MTOs (e.g., ACE Money Transfer).
• Always ensure your remittance source is documented.
• Avoid cash-based or undocumented transactions.

By doing this, even if you send money to Pakistan online from Greece or anywhere in Europe, you remain exempt from the 10% tax.

Why ACE stands out:

• Zero hidden charges on most transfers
• Competitive exchange rates to maximise your remittance value
• Fast delivery options: Bank deposits, cash pickups, and mobile wallets
• 24/7 service with an easy-to-use mobile app and website

With 4.8+ ratings on Trustpilot, ACE Money Transfer is the top choice for thousands of satisfied users.

Comparison Table: Informal vs. Formal Remittance Channels

Statistics & Insights

• In FY 2023, Pakistan received over $27 billion in remittances.
• Greece contributes approximately $300 million annually, highlighting the importance of secure remittance channels.
• Using formal remittance services can save you up to 10% in taxes and hidden fees.

While the 10% tax on undocumented remittances has raised concerns, it doesn’t affect those who use formal, authorised methods to send money. Pakistani workers in Greece and other parts of Europe can continue to support their families confidently by choosing trusted services.

ACE Money Transfer provides a secure, efficient, and affordable way for money transfer to Pakistan from Greece. With transparent rates, speed, and excellent customer service, it’s your best choice for reliable transfers.

Ready To Send Money Without Worry?

Make the smart choice and avoid unnecessary deductions. Start your online money transfer to Pakistan from Malta today with ACE Money Transfer. It’s fast, secure, and trusted by millions worldwide.

Earn More with ACE Invite-a-Friend Program

Invite friends to ACE Money Transfer and earn instant wallet credits and exciting monthly rewards. The more friends you invite, the more you earn — directly into our ACE wallet.

Earn with ACE Now 

FAQs

Does the 10% tax apply to all remittances?

No, it only applies to undocumented or unexplained foreign remittances. Transfers made through formal channels like ACE Money Transfer are exempt.

Are Pakistani workers in Greece affected by this tax?

Only if they use informal remittance methods. Those using legal and verified platforms remain unaffected.

How can I avoid this tax?

Use licensed platforms such as ACE Money Transfer to send funds and always ensure proper documentation.

Is ACE Money Transfer available in Greece?

Yes, ACE offers seamless services for users who wish to send money to Pakistan from Malta or Greece.

What makes ACE Money Transfer better than other services?

ACE offers competitive rates, zero hidden charges, fast delivery, and has a 4.8+ ratings on Trustpilot, making it a top choice for reliable transfers.