Greece Investment Income Tax Guide 2026 — Dividends (5%), Interest (15%)

Overview

Greek tax law distinguishes between investment income (εισόδημα από κεφάλαιο) and capital gains (υπεραξία). Investment income such as dividends, interest, and certain distributions is generally subject to a final withholding tax (παρακράτηση φόρου) at source, meaning the tax is withheld by the paying entity and no further declaration is required if received through a Greek intermediary. These are substitute taxes (αυτοτελής φορολόγηση) — the amounts are not included in the progressive income tax return.

For investment income received directly (without a Greek intermediary), the taxpayer must declare the income on their annual tax return and pay the corresponding tax. The rates are the same as the withholding tax rates, so the total tax burden is identical.

Dividend Taxation — 5% Final Withholding

Greek Residents: Dividends distributed by Greek resident companies to individual shareholders are subject to a final 5% withholding tax (παρακράτηση φόρου μερισμάτων). This is a definitive tax — the dividends are not included in the taxpayer's progressive income tax return, and no further tax is due regardless of the individual's marginal rate. The 5% rate applies to dividends from both listed and unlisted Greek companies.

Key Point — 5% is Final: Unlike some countries where dividend withholding is an advance against progressive rates, Greece treats the 5% as the final tax. An individual in the 44% bracket pays only 5% on dividends, not 44%. This makes dividend income highly tax-efficient for high-income individuals.

Non-Residents: Dividends paid by Greek companies to non-resident individuals are also subject to 5% withholding. This rate may be reduced under applicable double taxation treaties (commonly to 0% for qualifying holdings). For non-resident companies, the EU Parent-Subsidiary Directive provides an exemption for qualifying holdings of at least 10% held for 12 months.

Foreign Dividends: Dividends from foreign companies received by Greek residents through a Greek intermediary are subject to the same 5% final withholding tax (the intermediary applies the rate). If received directly (without an intermediary), the taxpayer must declare the gross dividend and the foreign tax withheld on the annual return (Έντυπο Ε1, κωδικοί 295-296) and pay the 5% Greek tax. A foreign tax credit is available for withholding tax paid abroad, up to the Greek tax due on the same income.

Interest Taxation — 15% Final Withholding

Bank Deposits: Interest on Greek bank deposits is subject to a final 15% withholding tax. This applies to savings accounts, time deposits, and current accounts. The tax is withheld by the bank at source, and no further declaration is required. Interest from Greek bank deposits is not included in the progressive income tax return.

Government Bonds: Interest from Greek government bonds (including T-bills, fixed-rate bonds, floating-rate notes) is subject to 15% final withholding tax for individuals. This rate applies to both residents and non-residents. For corporate holders, interest on Greek government bonds is taxed at the standard 22% corporate rate (though effective rates may be lower through specific provisions).

Corporate Bonds: Interest from Greek corporate bonds (debentures) is subject to 15% final withholding tax for individuals. For listed corporate bonds issued by Greek companies, the same 15% rate applies. The tax is withheld at source by the paying agent.

Foreign Interest: Interest from foreign bank accounts, foreign bonds, and other foreign debt instruments received by Greek residents is subject to 15% tax. If received through a Greek intermediary, the 15% is withheld at source. If received directly, the taxpayer must declare the interest on their annual return and pay the 15% tax. A foreign tax credit is available for withholding taxes paid abroad.

Securities and Other Investment Income

REIT Distributions (ΑΕΕΑΠ): Distributions from Greek Real Estate Investment Companies (Ανώνυμες Εταιρείες Επενδύσεων σε Ακίνητη Περιουσία — ΑΕΕΑΠ) are subject to a final 5% withholding tax for individuals (same as dividends). REIT distributions are considered similar to dividend income.

Mutual Fund and ETF Distributions: Distributions from Greek UCITS mutual funds and ETFs are subject to 15% withholding tax for most funds (bond funds, money market funds). For equity funds (distributing dividends), the rate is 5% reflecting the underlying dividend character. Accumulating funds (which reinvest income) defer taxation until the investor sells their units — at which point the gain is treated as a capital gain and is exempt for individuals.

Insurance Investment Products: Investment income from life insurance policies with an investment component (unit-linked, endowment policies) is generally exempt from tax for individuals. However, surrender gains (the difference between the payout and the total premiums paid) exceeding €20,000 per year may be subject to tax as a capital gain. Most simple life insurance policies remain exempt.

Foreign Investment Reporting

Greek residents holding foreign investment accounts, foreign bank accounts, foreign real estate, and other foreign assets must report them on their annual tax return if the total value exceeds certain thresholds. The reporting is done through the Πίνακας 5 (Table 5) of the E1 form or the Έντυπο Ε2 for real estate.

Foreign Account Reporting: If the total balance of foreign bank accounts exceeds €10,000 at any point during the tax year, all accounts must be reported. Interest earned on these accounts must be declared and taxed at 15%. Failure to report foreign accounts and income can result in penalties of €100 to €500 and potential tax evasion charges.

CRS (Common Reporting Standard): Greece participates in the OECD CRS, which means that foreign financial institutions automatically report Greek residents' financial accounts to the Greek tax authorities. AADE receives data on balances, interest, dividends, and account proceeds from over 100 participating jurisdictions. This has significantly increased compliance pressure on Greek residents holding undisclosed foreign assets.

FAQs

Are dividends from foreign shares taxed differently?

No. Dividends from foreign companies received by Greek residents are taxed at the same 5% final rate as Greek dividends. If foreign withholding tax has been applied (e.g., US 15%, European countries 15-30%), the Greek taxpayer can claim a foreign tax credit up to the Greek tax due on the same income (5%). Any excess foreign tax (e.g., 15% - 5% = 10%) is not refundable in Greece but may be claimed as a deduction. It is generally advisable to invest in foreign shares through a Greek intermediary (bank or broker) that can handle the foreign tax credit automatically.

Is interest from foreign bonds taxed?

Yes. Interest from foreign bonds (corporate or government) received by Greek residents is subject to 15% final tax. If received through a Greek intermediary, the tax is withheld at source. If received directly (without intermediary), the taxpayer must declare the interest on their tax return. Foreign withholding tax (e.g., US 30%, UK 20%) can be credited against the Greek 15% tax. Most double taxation treaties reduce foreign withholding on interest to 10-15%.

Do I need to report investments held in a Greek brokerage account?

Investments held in a Greek brokerage account (χρηματιστηριακός λογαριασμός) are generally not required to be reported separately because the withholding taxes are applied at source by the broker. The broker issues an annual statement (Βεβαίωση Αποδοχών/Τόκων/Μερισμάτων) summarising all investment income and taxes withheld, which is pre-filled in the tax return. However, investments held in a foreign brokerage account (e.g., Interactive Brokers, Degiro) must be reported on Table 5 of the E1 form, and all income must be declared and taxed.