Greece Retirement Guide: 7% Tax, Islands & Cost of Living (2026)

Greece has quietly become one of the most compelling retirement destinations in Europe. While Portugal and Spain have dominated the conversation for years, Greece offers something neither can match: the combination of rock-bottom costs, a 7% flat tax on foreign pension income, island living that feels like a permanent vacation, and a culture that treats older people with genuine reverence. A retired couple can live well in Greece for $1,500–$2,000 per month — a figure that would barely cover rent in most Western European capitals.

The Greek government has actively courted foreign retirees since introducing the 7% flat tax regime in 2020, modeled after Portugal’s now-expired NHR program. The program is simple: transfer your tax residency to Greece, and all foreign-source income — pensions, Social Security, investment returns — is taxed at a flat 7% for 15 years. No progressive brackets, no wealth tax, no complications. Combined with a cost of living that runs 40–50% below Western Europe and 50–60% below the US, Greece delivers a retirement that stretches every dollar further than almost anywhere in the EU.

Greece ranks well in our best countries for retirement rankings, and its capital consistently appears among the best cities for retirees abroad. This guide covers everything you need to make an informed decision about retiring in Greece in 2026.

Why Retire in Greece?

Greece’s appeal for retirees goes deeper than sunshine and cheap taverna meals. Here are the factors that set it apart from other Mediterranean retirement destinations.

• Incredible value for Mediterranean Europe: Greece is one of the cheapest countries in the Eurozone. A couple can rent a two-bedroom apartment in Athens for EUR 500–800, eat out three times a week at traditional tavernas for EUR 8–12 per person, and cover all monthly expenses for under $2,000. The Peloponnese and smaller islands are even cheaper.
• 7% flat tax incentive: Greece’s alternative tax regime for retirees is one of the most attractive in Europe. All foreign-source income is taxed at just 7% for 15 years — better than Portugal’s expired NHR and Italy’s 7% regime (which only applies to southern regions).
• Island lifestyle within reach: Greece has over 6,000 islands, 227 of which are inhabited. Unlike the Caribbean or Southeast Asia, Greek islands are served by affordable ferries and budget airlines, have proper infrastructure, and remain part of the EU. You can live on Crete or Corfu year-round with access to hospitals, supermarkets, and reliable internet.
• Ancient culture and modern convenience: From the Acropolis to village Easter celebrations, Greece offers a depth of cultural experience that few countries can match. Yet it also has modern highways, high-speed internet, and EU consumer protections.
• Welcoming culture: Greek philoxenia (love of strangers) is not a marketing slogan — it is a deeply held cultural value. Older people are respected, community bonds are strong, and foreigners who make an effort to learn basic Greek find doors open quickly.
• Growing expat community: The retiree community in Greece has grown significantly since 2020, particularly on Crete, Corfu, and in the Athens suburbs. British, German, Scandinavian, and increasingly American retirees have established social networks, English-speaking services, and community groups.

Best Cities and Islands for Retirement

Athens — $1,500/month

Athens is the practical choice for retirees who want urban convenience without urban prices. The city offers the best healthcare access in Greece (multiple public and private hospitals), an international airport with direct flights across Europe and to the US, world-class museums and archaeological sites, and a food scene that rivals any Mediterranean capital. The southern suburbs — Glyfada, Voula, Vouliagmeni — combine coastal living with city access.

A couple can rent a comfortable two-bedroom apartment in central Athens or the southern suburbs for EUR 500–900. Groceries run EUR 250–350 per month. The metro is modern, efficient, and cheap (EUR 1.20 per ride, EUR 30 for a monthly pass). Dining out at a neighborhood taverna costs EUR 10–15 per person for a full meal with wine. Explore the full Athens city profile for detailed cost breakdowns.

Athens works best for retirees who want access to specialist healthcare, international flights, cultural stimulation, and the option to hop on a ferry to the islands whenever the mood strikes. The Piraeus port connects to dozens of islands within 1–8 hours.

Thessaloniki — $1,200/month

Greece’s second city is a hidden gem for retirement. Thessaloniki sits on the Thermaic Gulf, with a stunning waterfront promenade, a UNESCO-listed old town, and what many Greeks consider the best food in the country. It has a youthful energy thanks to its large university population, yet it is calmer and more manageable than Athens. The cost of living runs 15–20% lower than the capital.

Rent for a two-bedroom apartment averages EUR 400–700. The city has excellent hospitals (AHEPA, Papageorgiou) and a growing community of Northern European retirees. Thessaloniki’s airport offers direct flights to most European capitals. The city is also the gateway to Halkidiki’s beaches (30–60 minutes by car) and Mount Olympus. Winters are colder than Athens or the islands (5–10°C), which suits retirees who prefer four seasons.

Crete (Chania and Heraklion) — $1,300/month

Crete is Greece’s largest island and the most self-sufficient — it could practically function as its own country. Heraklion, the capital, has a major hospital, an international airport, large supermarkets, and a population of 175,000. Chania, on the western end, is widely considered one of the most beautiful cities in Greece, with a Venetian harbor, narrow lanes, and a laid-back atmosphere that draws retirees from across Europe.

Crete’s climate is the mildest in Greece — winters rarely drop below 10°C on the coast, and the southern shore around Sfakia and Paleochora is practically subtropical. A couple can rent a village house or apartment for EUR 400–700. Crete produces its own olive oil, wine, cheese, and produce, so groceries are excellent and affordable. The expat community, particularly around Chania and Rethymno, is well-established with social clubs, hiking groups, and English-speaking professionals.

Corfu — $1,400/month

Corfu is the most cosmopolitan of the Ionian Islands, with Venetian architecture, lush green landscapes (it rains more than the Aegean islands), and the longest-established British expat community in Greece. Corfu Town has excellent restaurants, a vibrant cultural scene, and good medical facilities. The island has a year-round international airport with direct flights to the UK and other European cities.

Corfu is slightly more expensive than Crete or the Peloponnese due to its popularity and established foreign community. Rent runs EUR 450–800 for a two-bedroom apartment or house. The British community provides a built-in social network for English speakers, with clubs, churches, and charitable organizations that welcome newcomers. Corfu’s lush landscape and mild Ionian climate — cooler summers, wetter winters — suit retirees who want green rather than arid.

Rhodes — $1,300/month

Rhodes combines ancient history with modern resort infrastructure. The Medieval Old Town — a UNESCO World Heritage Site — is one of the best-preserved medieval cities in Europe. Outside the tourist season, Rhodes offers a quiet, sun-drenched lifestyle with over 300 sunny days per year. The island has a good general hospital and an international airport with seasonal direct flights to most of Europe.

Rent in Rhodes town runs EUR 400–650 for a two-bedroom apartment. The southern and western parts of the island are quieter and cheaper. Rhodes is large enough to avoid feeling isolated (population 50,000+) but small enough that the community is tight-knit. Swedish, German, and British retirees form the core of the expat community.

Peloponnese (Nafplio and Kalamata) — $1,100/month

The Peloponnese peninsula is mainland Greece at its most authentic. It is connected to Athens by modern highways (Nafplio is 90 minutes from the capital), yet it feels a world away. Nafplio, often called the most beautiful town in Greece, sits on a fortified peninsula with Venetian architecture, waterfront cafes, and a small-town atmosphere. Kalamata, famous for its olives, offers a modern waterfront city with a mild climate and surprisingly good infrastructure.

The Peloponnese is the cheapest option on this list. Rent for a two-bedroom apartment starts at EUR 300 in smaller towns and EUR 400–600 in Nafplio or Kalamata. Healthcare access requires travel to Tripoli or Patras for specialist care, or to Athens for anything complex. This is the best choice for retirees who want authentic Greek life, lower costs, and proximity to Athens without the city itself.

Cost of Living in Detail

Greece is one of the cheapest countries in the Eurozone, and retirees benefit from a lifestyle that is naturally affordable — outdoor cafes replace expensive entertainment, home-cooked Mediterranean food is cheap and healthy, and the Greek pace of life does not encourage excessive spending. Here is a detailed monthly budget for a retired couple.

Rent

• Athens (central or southern suburbs): EUR 500–900
• Thessaloniki: EUR 400–700
• Crete (Chania/Heraklion): EUR 400–700
• Corfu: EUR 450–800
• Rhodes: EUR 400–650
• Peloponnese: EUR 300–600
• Greek island village: EUR 250–500

Groceries and Dining

Greek supermarkets (Sklavenitis, AB Vassilopoulos, Lidl) are well-stocked and affordable. A couple’s monthly grocery bill runs EUR 250–400, with seasonal produce, olive oil, feta, yogurt, bread, and wine being exceptionally cheap. Farmer’s markets (laiki agora) operate weekly in every town and offer fruit, vegetables, fish, and cheese at 30–50% below supermarket prices.

Dining out is one of Greece’s great pleasures and great values. A traditional taverna meal — grilled meat or fish, salad, bread, and a carafe of house wine — costs EUR 10–15 per person. A coffee at a kafeneio runs EUR 1.50–3. Eating out three times a week adds EUR 150–250 to the monthly budget.

Healthcare Costs

Public healthcare through EOPYY is available to legal residents at minimal cost (see Healthcare section below). Private insurance for a couple over 60 costs EUR 200–500 per month depending on coverage level and pre-existing conditions. Dental care in Greece is significantly cheaper than Western Europe — a cleaning costs EUR 40–60, and a crown runs EUR 250–400.

Utilities

Electricity is the biggest utility cost, particularly in summer (air conditioning) and winter (electric heating). Budget EUR 80–150 per month for electricity, EUR 20–30 for water, and EUR 15–25 for internet (fiber is widely available in cities). Mobile plans with generous data cost EUR 10–20. Total utilities: EUR 125–225 per month.

Transportation

In Athens and Thessaloniki, public transport is excellent and cheap (EUR 30/month for unlimited travel). On the islands and in the Peloponnese, a car is essential. A small used car costs EUR 5,000–10,000. Fuel runs EUR 1.70–2.00 per liter ($7.40–$8.70 per gallon). Car insurance costs EUR 300–500 per year. Ferries between islands are affordable for occasional travel: EUR 30–60 for a standard ticket on most routes.

Monthly Budget Summary (Couple)

• Athens: EUR 1,400–2,200 ($1,500–$2,400)
• Thessaloniki: EUR 1,100–1,800 ($1,200–$1,950)
• Crete: EUR 1,200–1,900 ($1,300–$2,050)
• Corfu: EUR 1,300–2,000 ($1,400–$2,150)
• Peloponnese: EUR 1,000–1,600 ($1,100–$1,750)

The 7% Flat Tax Regime for Retirees

Greece’s most powerful incentive for foreign retirees is the alternative tax regime introduced by Law 4714/2020 (Article 5B of the Greek Income Tax Code). It offers a flat 7% tax rate on all foreign-source income for 15 years — one of the longest and most favorable tax regimes for retirees anywhere in the world.

Eligibility Requirements

• You must not have been a Greek tax resident for 5 of the previous 6 years
• You must transfer your tax residency to Greece
• You must receive pension income from abroad (private pensions, state pensions, Social Security)
• You must relocate from a country that has a tax treaty or administrative cooperation agreement with Greece (the US, UK, Canada, Australia, and all EU countries qualify)

What Is Covered

The 7% rate applies to all foreign-source income — not just pensions. This includes pension payments, Social Security benefits, investment dividends, interest income, rental income from properties abroad, and capital gains from foreign assets. Greek-source income (if any) is taxed under the regular progressive system.

Application Process

1. Obtain a Greek tax number (AFM): Apply at the local tax office (DOY) with your passport and proof of Greek address
2. Submit the application: File with the competent tax authority by March 31 of the year following your move to Greece
3. Provide documentation: Certificate of tax residency from your previous country, proof of pension income, proof of Greek residency
4. Approval: The tax authority processes applications within 60 days
5. Annual obligation: Pay 7% tax on all foreign-source income via annual tax return, with minimum tax payment of EUR 100 per year

Comparison with Other Programs

Portugal’s NHR program (now expired for new applicants) taxed foreign pensions at 10% for 10 years. Italy offers a 7% flat tax for retirees, but only for those who move to southern Italian municipalities with fewer than 20,000 inhabitants. Greece’s 7% regime has no geographic restrictions within Greece, lasts 15 years (vs. 10 for the others), and applies to all foreign income types. It is currently the most generous retiree tax regime in the EU.

Tax Residency Rules

To maintain Greek tax residency, you must spend at least 183 days per year in Greece. American retirees should note that the US taxes worldwide income regardless of residency — but the Foreign Tax Credit on your US return prevents double taxation. The US-Greece tax treaty determines which country has primary taxing rights on different income types. Consult a cross-border tax professional to optimize your specific situation.

Healthcare in Greece

The EOPYY Public System

Greece’s public healthcare system, administered by EOPYY (National Organization for the Provision of Health Services), provides universal coverage to all legal residents. Once you have a residence permit and are registered with EOPYY, you can access public hospitals and clinics. The system covers primary care, specialist consultations, hospitalization, surgery, and prescription medications (with co-payments of 10–25% on medicines).

Quality varies significantly. Athens has excellent public hospitals — Evangelismos, Attikon, and Hippokration are modern and well-staffed. Thessaloniki’s hospitals are similarly good. However, public hospitals on smaller islands may be limited to basic care, with serious cases evacuated by air or sea to Athens or Heraklion. Wait times for non-urgent specialist appointments run 2–8 weeks in public facilities.

EU Citizens and EHIC

EU/EEA citizens can use their European Health Insurance Card (EHIC) for temporary stays and can access the Greek public system once registered as residents. British retirees with the S1 form (exported healthcare entitlement) can also access EOPYY-contracted services. This makes Greece particularly accessible for European retirees.

Private Healthcare

Private healthcare in Greece is excellent and affordable by Western standards. Major private hospital groups include Hygeia, Metropolitan, and Athens Medical Center. A private consultation with a specialist costs EUR 50–80. Private insurance plans for retirees cost EUR 100–250 per person per month, depending on age and coverage. Many retirees use a combination of EOPYY for routine care and prescriptions, and private insurance for specialist access and faster service.

Pharmacies and Dental Care

Greek pharmacies (farmakeio) are well-stocked and pharmacists are highly trained. Many medications that require a prescription in the US or UK are available over the counter in Greece. Pharmacies are identified by a green cross and operate on a rotation schedule so that at least one is always open 24/7 in each area.

Dental care in Greece is a notable value. Many dental procedures cost 50–70% less than in the US or UK, and Greek dentists are generally well-trained (many study in Germany or the UK). Dental tourism is a growing segment — some retirees in Greece schedule major dental work here rather than paying home-country prices.

Visa and Residency Options

D-Type National Visa for Retirees (Non-EU Citizens)

Non-EU retirees apply for a D-type national visa at the Greek consulate in their country of residence. This visa is for financially independent individuals who will not work in Greece.

• Financial requirements: Proof of stable income of at least EUR 2,000/month (pension statements, Social Security award letters, investment income documentation)
• Health insurance: Comprehensive coverage valid in Greece
• Criminal background check: Apostilled and translated into Greek
• Accommodation: Proof of housing in Greece (rental agreement or property deed)
• Process: Apply at the Greek consulate, receive the D-visa (valid for 1 year), then apply for a residence permit at the local immigration office (Apostaseis Allodapon) within 30 days of arrival

The residence permit is renewable annually. After 5 years of continuous legal residence, you can apply for long-term EU residence status. After 7 years, you can apply for Greek citizenship (requires Greek language proficiency at B1 level).

Golden Visa — EUR 250,000

Greece’s Golden Visa grants residency through real estate investment. The minimum investment is EUR 250,000 in most areas (raised to EUR 500,000 in Athens, Thessaloniki, Mykonos, and Santorini in 2024). The Golden Visa does not require you to live in Greece — it grants a 5-year renewable residence permit with just a single visit to submit biometrics. It is popular with retirees who want flexibility to split time between Greece and their home country.

The Golden Visa can be combined with the 7% flat tax regime, provided you meet the 183-day residency requirement for tax purposes. This combination — property investment plus favorable tax treatment — makes Greece one of the most attractive packages for retirees with capital to invest.

EU Citizens

EU/EEA citizens have the right to live in Greece freely. After 3 months, you should register with the local authorities and obtain a registration certificate. After 5 years of continuous residence, you can apply for permanent residence. The process is straightforward and requires proof of sufficient resources and health insurance (or access to EOPYY).

Practical Retirement Life in Greece

Learning Greek

Greek uses its own alphabet, which creates an initial learning curve. However, many English words derive from Greek, and basic conversational Greek can be picked up within 3–6 months of regular study. Language schools in Athens and Thessaloniki charge EUR 150–300 per month for group classes. Private tutors cost EUR 15–25 per hour. Many Greeks speak English, particularly in tourist areas and among younger people, but learning basic Greek transforms your daily experience — it earns respect, opens friendships, and makes bureaucratic interactions dramatically smoother.

Essential phrases to learn first: kalimera (good morning), efcharisto (thank you), parakalo (please/you’re welcome), signomi (excuse me), pos iste (how are you), and poso kanei (how much does it cost). These six phrases will carry you through most daily interactions.

Social Integration

Greek social life revolves around the kafeneio (traditional coffee house), the plateia (town square), and the taverna. These are not just places to eat and drink — they are the centers of community life. Sitting at a kafeneio for hours is not only accepted but expected. Greeks are naturally sociable and curious about foreigners who choose to live in their country.

Expat social groups are active in all major retirement areas. Facebook groups, local associations, and volunteer organizations provide entry points. On Crete, the Chania Expat Community and Heraklion International Community organize regular events. Athens has multiple international clubs and volunteer organizations. Church communities (both Greek Orthodox and international) also serve as social hubs.

Driving in Greece

Greek driving can be an adjustment. Urban traffic in Athens is congested, and island roads can be narrow and winding. However, the national highway system connecting Athens to Thessaloniki, Patras, and the Peloponnese is modern and well-maintained. An international driving permit (IDP) is required alongside your home country license for the first 6 months. After establishing residency, you must obtain a Greek license — EU citizens can exchange theirs directly; non-EU citizens must take a driving test.

Banking

Opening a Greek bank account requires your AFM (tax number), passport, proof of address, and residence permit. Major banks include Alpha Bank, Eurobank, National Bank of Greece, and Piraeus Bank. Online banking is well-developed. International transfers via Wise or Revolut are popular among expats for receiving pension payments with minimal fees. Greek banks may impose minimum balance requirements or monthly fees of EUR 2–5.

Island Hopping in Retirement

One of the great luxuries of retiring in Greece is access to hundreds of islands. Ferries operated by Blue Star, Hellenic Seaways, Minoan Lines, and others connect the major islands to Piraeus (Athens) and each other. Off-season fares are discounted, and retirees with flexible schedules can take advantage of quiet shoulder seasons (April–May, September–October) when the islands are at their best — warm weather, no crowds, and lower accommodation prices. A ferry from Athens to Crete costs EUR 30–45 for a standard seat, or EUR 60–90 for a cabin.

Seasonal Considerations and Winters

Summer in Greece (July–August) brings intense heat, crowds, and higher prices. Many retirees adopt the Greek habit of escaping to the mountains or a quieter island during peak summer. Winters vary dramatically by location: Athens and the islands enjoy mild winters (10–15°C), while Thessaloniki and the north can be cold (0–8°C with occasional snow). Crete’s south coast remains the warmest winter destination in Greece.

Some retirees adopt a seasonal rhythm: spend October through May in Greece (enjoying mild weather and lower costs), then return to their home country or travel during the hot summer months. This works well with the 183-day tax residency requirement — you maintain Greek tax status while avoiding the least comfortable weeks of the year.

Frequently Asked Questions

Can I retire in Greece on US Social Security alone?

It depends on your benefit amount and chosen location. The average US Social Security benefit of $1,900 per month translates to approximately EUR 1,750 — which is enough to live comfortably as a couple in Thessaloniki, Crete, or the Peloponnese. In Athens, you would need to be frugal. The D-type visa requires proof of EUR 2,000/month, so a single person on average Social Security may need supplemental income from savings or investments to qualify for the visa. However, once you are established, actual living costs can be lower than the visa threshold.

How does the 7% flat tax work with US taxes?

The US taxes worldwide income regardless of where you live. When you pay 7% Greek tax on your pension income, you can claim a Foreign Tax Credit on your US return (Form 1116) to avoid double taxation. If your US effective rate is higher than 7%, you pay the difference to the IRS. Social Security benefits may be taxable in both countries, but the US-Greece tax treaty and the Foreign Tax Credit mechanism ensure you are not taxed twice on the same income. A cross-border tax advisor familiar with both US and Greek tax law is strongly recommended.

Is Greek healthcare good enough for retirees?

For routine care and emergencies, yes — particularly in Athens, Thessaloniki, and on Crete. Greek doctors are well-trained (many study abroad), and private hospitals in Athens meet international standards. However, if you have a complex chronic condition requiring specialized ongoing treatment, consider whether your chosen location has adequate facilities. Smaller islands have limited medical infrastructure and rely on air or sea evacuation for serious cases. Private insurance (EUR 100–250/month) gives you access to the best private hospitals and specialist doctors.

What are the biggest challenges of retiring in Greece?

Bureaucracy is the most common complaint. Greek government offices can be slow, paperwork-intensive, and inconsistent between regions. An immigration lawyer or relocation agent (EUR 500–1,500 for the visa process) is money well spent. The Greek language barrier is real for daily errands outside tourist zones. Summer heat (35–40°C) can be oppressive, and air conditioning drives up electricity bills. Finally, island living requires adjustment — ferry schedules can be disrupted by winter storms, and specialist services may require a trip to the mainland.

How does Greece compare to Portugal or Spain for retirement?

Greece is 20–30% cheaper than Portugal and comparable to Spain’s cheapest regions. The 7% flat tax (15 years) beats Portugal’s expired NHR and Spain’s standard progressive rates. Spain wins on healthcare quality (WHO #7) and established expat infrastructure. Portugal wins on ease of visa access (D7 requires less income) and English proficiency. Greece wins on cost, tax incentives, island lifestyle, and cultural depth. The Greek Golden Visa (EUR 250k in most areas) is cheaper than Spain’s (closed) or Portugal’s (EUR 500k fund investment). Compare directly with our Greece country profile.