Ruhestand

  There are many compelling reasons to spend a fulfilling retirement in Greece. Affordable living costs, a healthy Mediterranean climate, and an open Greek hospitality culture, along with excellent healthy cuisine, rich culture, and history, make it a magnet for expatriates. The recently announced tax benefits for foreign retirees, which we will discuss in more detail later, make the most beautiful country in the Mediterranean extremely attractive.

POPULAR REGION: PELOPONNESE

Peloponnes, Korinth

Greece consists of 80% mainland, with the remaining area made up of more than 3,000 islands, though not all are inhabited. Both landmasses are largely well-developed. Many expatriates seek proximity to major cities, and the Peloponnese region is particularly attractive due to its closeness to the capital, Athens. This provides short distances to good medical care, airports (Athens, Kalamata), and eliminates the need for ferry connections, which can be limited outside the tourist season for popular island visits.

Famous names on the Peloponnese, such as Nafplio (the former capital of Greece), the cultural cities of Mycenae, Epidaurus, Sparta, or the island of Pylos, add to the appeal of choosing the Peloponnese as a preferred region. Away from tourist hotspots, you can still find secluded beaches, breathtaking nature, olive groves, flocks of goats and sheep, and tiny mountain villages.

 

Cost of Living

With around 1000-1500 EUR per month, depending on the region and lifestyle, you can live comfortably in the Peloponnese. On average, living costs are about 50% lower than in Central European countries. The choice of location understandably affects the costs incurred.

Immigration

Europeans can easily enter Greece with an ID card or passport. For third-country nationals, special visas are required, and we can offer personalized advice on this matter. If you wish to stay long-term, a residence permit must be applied for after three months. This is usually done at the local police station or immigration office. To obtain the residence permit, proof of sufficient financial means (tax returns, pension statements, private assets, etc.) is required. Initially, a yellow residence card is issued, and after five years, a blue permanent residence card is granted.

Health Insurance

Public Insurance: Within the EU, there is a social security agreement among member countries. This offers the following advantages: European retirees wishing to live permanently in Greece must apply for health benefits abroad through their health insurance, but they remain insured with their original provider. Once approved, foreign retirees receive the same free health benefits as locals.

Private Insurance: German retirees with private insurance who wish to live in Greece should discuss this with their private insurer.

Government Employees: The situation regarding health coverage is different for pensioners. For details, consult the relevant authority in your state.

Healthcare quality is generally ensured across Greece. Pharmacies are abundant, even in the smallest villages, and are marked by a green cross. Medications are generally cheaper in Greece.

 

Pension Payment

  • A German pension can be transferred seamlessly to a Greek bank account. As part of the SEPA zone within the EU, transfers from Germany to Greece take the same amount of time as domestic transfers. You can also keep your pension payments in Germany.

    Paying bills such as rent, electricity, and insurance is possible with a German bank account. There are many ATMs (even in areas without a bank branch), ensuring reliable access to cash.

    For those who want a more affordable account in Greece, a German online bank can offer an account with German deposit insurance if you have a residence in Greece. We can provide more detailed advice on this.

Taxes
Under the Double Taxation Agreement (DTA), Greece is entitled to tax statutory pensions from Germany if your primary residence is in Greece. However, for civil service pensions from public funds of the Federal Republic of Germany, Germany retains the taxation rights.

DBA Greece Article XII:
(1) Pensions and annuities (excluding those mentioned in paragraphs 2 and 3) received by a resident of one contracting state from sources within the other contracting state may only be taxed in the first-mentioned state.
(2) Pensions and annuities paid from public funds of the Kingdom of Greece or its subdivisions may only be taxed in Greece.
(3) Pensions and annuities paid from public funds of the Federal Republic of Germany or its subdivisions may only be taxed in Germany.

In 2020, Greece introduced a flat tax rate for foreign retirees. This law allows retirees who relocate their tax residence to Greece to enjoy a flat income tax rate of only 7% for 15 years. A stipulation is that retirees should not have been tax residents in Greece for five of the past six years. The law targets new immigrants, not retirees already living in Greece.

Retirees with a small pension in Germany should carefully consider whether relocating for tax reasons is worthwhile. In Germany, for example, there is a tax-free allowance, which in 2021 stood at 9,744 EUR for singles and 19,488 EUR for married couples. If your gross pension is below this amount, no taxes are due in Germany. Therefore, wealthy retirees are more likely to benefit from Greece's "Happy Retirement Program," which applies to all income, including rental income and dividends.

Conclusion
Moving to Greece is worthwhile as it is one of the most affordable countries in the European Union. The We Love Greece Consulting team is happy to assist you with all aspects of your relocation and help you settle harmoniously in Greece.

Deutsche Rentner Willkommen