Greece Financially Independent Person (FIP) Visa

Local tax regime and what it means for you

Greece is classified here as using a territorial tax regime for FIP visa holders, meaning Greek tax focuses on income arising in Greece and generally does not extend to foreign‑source income that stays abroad. For someone on this visa, local work is prohibited and the local income limit is set at 0% of total income, so the main concern is how Greece treats your pensions, dividends, interest, and rental income from outside Greece once you are physically present there for at least 183 days per year.

In practice, a territorial label means that Greek‑source income (for example, rent from a Greek apartment or interest from a Greek bank) would fall into the Greek tax net, while foreign pensions, foreign dividends from a US brokerage account, and US rental income are commonly treated as out of scope if not remitted into Greece. However, the exact mechanics and rates for FIP holders are not publicly specified in the provided facts, so you cannot assume full exemption on all foreign inflows; you need a local accountant to apply Greece’s residence and source rules to your situation.

On capital gains, there is no explicit, published rule here about how Greece taxes gains from selling foreign ETFs or index funds held in a non‑Greek brokerage. Based on the territorial classification, those gains are generally expected to be exempt locally if they are treated as foreign‑source and not remitted, but the precise treatment and any applicable rate bands are not disclosed in these facts. A FIRE investor selling large positions should assume potential Greek reporting until a local professional confirms otherwise in writing.

Tax residency is triggered at 183 days of physical presence per year, which aligns with the FIP’s own 183‑day residence requirement. Once you cross 183 days in Greece in a calendar year, Greek tax residency is presumed, and you then fall under Greek filing obligations and the territorial regime. Tax residency is tied to days on the ground, not simply holding the visa, so an unused visa with fewer than 183 days actually spent in Greece would generally avoid tax residency.

Local compliance starts with obtaining a Greek tax ID (AFM) once you become resident or open a local bank account. As a tax resident, you file an annual Greek tax return declaring Greek‑source income and any foreign‑source income that Greek law treats as taxable under territorial rules; deadlines and e‑filing systems are set by the Greek tax authority and are not publicly specified here. Because a local bank account is mandatory, expect the bank to ask for an AFM and for that AFM to pull you into the Greek system once you pass the 183‑day threshold.

The existence or detail level of a US–Greece income tax treaty is marked as unknown here. That means you cannot rely on treaty provisions for Social Security, dividends, or pensions without checking the actual text yourself or through a professional. In practice, “unknown” should be treated as “do not assume any special relief until verified.”

For US Citizens and Green Card Holders

US persons on a Greek FIP visa remain fully taxable by the United States on worldwide income regardless of Greece’s territorial regime. Three tools matter most: the Foreign Earned Income Exclusion (FEIE), the Foreign Tax Credit (FTC), and foreign asset reporting.

FEIE, claimed on Form 2555, can exclude up to $126,500 of earned income for 2024, rising slightly with inflation. That covers only active income (remote salary, self‑employment, consulting), not dividends, capital gains, pensions, or Social Security. Since the FIP visa prohibits local work and caps local income at 0%, many holders will either have no earned income at all or will maintain remote work in clear tension with the visa terms. For those who do have US or third‑country remote earnings, the Physical Presence Test (330 full days outside the US in any 12‑month period) is often easier to satisfy than the Bona Fide Residence Test, given that FIP holders must spend 183+ days in Greece but may still travel broadly outside the US.

Form 1116 for the Foreign Tax Credit matters mainly when Greek effective tax on a given income stream is greater than zero. If, under Greece’s territorial rules, your foreign‑source dividends, US rental income, and ETF capital gains are not taxed in Greece, there will be no Greek tax paid to credit against US liability, and the FTC gives you no relief on that income. By contrast, if you generate Greek‑source income in the future (for example, Greek bank interest) that is taxed there, those Greek taxes can be credited against your US tax on the same income, avoiding double taxation.

FBAR (FinCEN 114) kicks in once the aggregate balance of all non‑US financial accounts exceeds $10,000 at any point in the calendar year. This includes the Greek local bank account that the FIP visa requires, plus any other foreign accounts you hold. FATCA Form 8938 has higher thresholds but similar reporting logic for specified foreign financial assets on your US tax return. Penalties for non‑willful FBAR violations start around $10,000 per account per year, so this is not optional.

For a US person using this visa, the clean setup is: a US expat‑focused CPA handling Forms 1040, 2555, 1116, 8938, and FBAR, coordinated with a Greek tax advisor who manages the AFM registration, Greek tax residency analysis, and annual Greek return. The $1,500–$3,000 spent in year one on this paired advice often pays for itself through correct FEIE/FTC elections, avoiding silent FBAR penalties, and structuring foreign investments in a way that matches both US and Greek rules.