Portugal vs Greece tax comparison
Portugal's IFICI taxes Portuguese-source employment and self-employment income from eligible activities at 20% for ten consecutive years and, as a rule, exempts foreign-source income other than pensions. Greece offers a EUR 100,000 yearly charge on foreign income, or 7% on it for foreign-pension recipients, each for up to 15 years, and a 50% exemption on Greek employment or business income for seven years.
Most Portugal-vs-Greece filings turn on Greece's tax incentives for new tax residents, Portugal's IFICI regime, and inheritance and estate planning.
Quick comparison table
| Tax category | Portugal | Greece |
|---|---|---|
| Foreigner/expat income | IFICI: 20% on qualifying income | Incoming-worker regime: 50% exemption on qualifying Greek employment and business income for seven tax years |
| Foreign-source income | Qualifying categories exempt under IFICI (conditions apply) | Foreign-income lump-sum regime: EUR 100,000 annual lump sum on foreign income; Foreign-pension recipient regime: 7% on foreign income for qualifying foreign-pension recipients |
| Inheritance (direct family) | Qualifying transfers to a spouse, descendant or ascendant are exempt from the 10% gratuitous-transfer charge, although 0.8% can still apply to donated Portuguese real estate. | Category A rules include thresholds and progressive bands; verify current AADE scale |
| Capital gains (real estate) | Standard resident/non-resident rules apply | Greek capital-gains tax on non-business real-estate transfers by individuals is suspended through 31 December 2026. |
| Capital gains (shares) | Generally 28% or aggregation, with mandatory aggregation for specified short-held securities | 15% on listed shares held at 0.5% or more and acquired from 1 January 2009; smaller holdings and earlier acquisitions generally exempt |
| Corporate tax | 19% | 22% |
| Property tax | Portugal: IMI 0.3%-0.45% urban (AIMI may apply) | Greece: ENFIA depends on the property and statutory assessment factors; verify the current AADE rules |
Greece’s three tax incentives
Greece has three distinct incentives.
| Greek route | Main benefit | Entry conditions and duration |
|---|---|---|
| Foreign-income lump-sum regime | Annual EUR 100,000 charge on covered foreign-source income; EUR 20,000 a year for each relative it extends to | Not Greek tax resident in seven of the eight previous years; as a rule an investment in Greece of at least EUR 500,000, completed within three years; up to 15 tax years |
| Foreign-pension recipient regime | 7% tax on covered foreign-source income for qualifying recipients of a foreign pension | Not Greek tax resident in five of the previous six years; transfer from a state with an administrative-cooperation agreement; up to 15 tax years |
| Incoming-worker regime | 50% exemption for qualifying Greek employment or business income | Prior non-residence and eligible work/business conditions; up to seven tax years |
The foreign-pension recipient regime is the pension-specific route. It can cover other foreign income as well as the pension, but Greek-source income follows separate rules. Treaty allocation can still change what Greece may tax. See AADE’s official explanation and application guidance.
Portugal's IFICI regime, which succeeded NHR in 2024
IFICI taxes net employment and self-employment income earned in Portugal from eligible activities at a special flat rate of 20% for 10 consecutive years from the year of registration as a Portuguese resident.
For eligible IFICI beneficiaries, foreign-source Categories A, B, E, F and G income is exempt with progression under IFICI, subject to the listed-jurisdiction rule and applicable anti-abuse rules. This exemption does not generally require tax to have been paid abroad. A foreign payer alone does not establish foreign source.
Eligibility restrictions:
Eligibility is tied to the qualifying activities in the IFICI eligibility rules (higher-education and research, certified startups, recognised-investment roles, SIFIDE R&D, and highly qualified professions), so it is not limited to research, although activities outside those defined routes do not qualify.
Inheritance and estate planning
Portugal: Direct-Family Stamp-Duty Exemption
- Spouses
- Children
- Grandchildren
- Parents
Greece: progressive graduated rates by relationship
Greece applies inheritance tax bands by degree of kinship, with a tax-free amount in each category. A spouse, civil partner or minor child has a higher exemption of EUR 400,000 per beneficiary; for a spouse or civil partner, the marriage or civil partnership must have lasted at least five years. Lifetime gifts follow their own rules.
Immediate family (spouses, children, grandchildren, parents):
- Tax-exempt up to EUR 150,000; above that, progressive rates of 1% to 10%
Siblings and grandparents:
- Tax-exempt up to EUR 30,000; above that, progressive rates of 5% to 20%
Other relatives and third parties (category C):
- Category C: the first EUR 6,000 is exempt; above that, progressive rates of 20% to 40%
Property taxation and real estate investment
Calculation factors:
- Size, use, and age of property
- Property-tax incentives: insured-property reductions and related relief programmes are policy-dependent and should be validated under current AADE rules.
- Payment: ENFIA for 2026 is payable in up to 12 monthly instalments, with the first ordinary instalment due on 31 March 2026.
- Capital gains on property sales in Greece: Greek capital-gains tax on non-business real-estate transfers by individuals is suspended through 31 December 2026.
Portugal: Capital gains on real estate fall under standard income taxation.
Baseline income tax without a special regime
In 2026, the Portuguese income-tax scale has nine brackets, from 12.5% to 48%.
Compare company profit and owner income separately
A business comparison must separate company profit from the owner’s income. Apply each country’s corporate rate to its own taxable base, then include any surtaxes, permanent-establishment allocation and tax on distributions.
Frequently asked questions
Which regime is better for a EUR 100,000 annual salary?
Qualifying Greek employment under the incoming-worker regime: half the salary taxed at ordinary rates for seven years. Qualifying Portuguese work income under IFICI: 20% for ten years.
Can I claim both Portugal IFICI and Greece’s incoming-worker regime simultaneously?
Eligibility depends on each regime’s residence and qualifying-work conditions. Both countries can regard you as tax resident under their domestic law. If that happens, the treaty between Portugal and Greece uses tie-breaker rules to determine residence for treaty purposes. The treaty does not itself grant either incentive or a right to combine them.
What happens to my tax status when Greece’s incoming-worker regime ends after 7 years?
When the seven-year period ends, the income no longer benefits from the incoming-worker regime’s 50% exemption and follows the ordinary Greek rules. A move to another country, or any other regime, needs a new eligibility analysis; there is no automatic transfer to a different incentive.
Are there any hidden costs to Greek property ownership beyond ENFIA?
Yes. Greek property transfer tax is 3%, plus a municipal levy equal to 3% of that tax. Notary, land-registry and legal fees depend on the transaction and should be quoted separately.
Does Portugal's IFICI apply to capital gains and dividends?
Yes, for certain income categories. IFICI beneficiaries can receive genuinely foreign-source income in Categories E, F and G with exemption and progression under IFICI, subject to the listed-jurisdiction rule and applicable anti-abuse rules. Portuguese-source gains on shares and securities are generally taxed at 28%, with aggregation by option, but specified short-held securities are mandatorily aggregated for taxpayers within the statutory top-bracket rule.
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