US-Greece Tax Treaty: What Americans Abroad Need to Know
The US-Greece tax treaty is designed to prevent double taxation. The saving clause preserves the US right to tax its citizens. Greece's non-dom tax regime creates unique filing situations for Americans.
Key Treaty Provisions
The US-Greece tax treaty covers:
- Income from employment — Taxed where the work is performed
- Dividends — Reduced withholding rates (25% or 15%)
- Interest — Reduced withholding rate (10%)
- Royalties — Reduced withholding rate (0% for certain royalties)
- Pensions — Generally taxed only in the country of residence
- Social Security — Taxed only by the paying country
The Saving Clause
The saving clause preserves the US right to tax its citizens and residents. You still file a US tax return and owe US tax on worldwide income even if you live in Greece.
The Non-Dom Regime
Greece's non-dom tax regime (€100,000 flat tax on foreign-source income for 15 years) is a domestic provision, not a treaty provision. The treaty does not affect this regime.
If you qualify for the non-dom regime, your foreign income is taxed at a flat €100,000 in Greece, which may make FEIE more attractive than FTC (since FTC is limited to foreign tax paid).
Residency Tie-Breaker Rules
If you are considered a tax resident of both the US and Greece, the treaty provides tie-breaker rules:
- Permanent home
- Center of vital interests
- Habitual abode
- Nationality
- Mutual agreement
Pensions & Retirement Income
Under the treaty, pensions are generally taxed only in the country of residence. For Americans in Greece:
- US Social Security is generally taxable only in the US
- US pensions and IRAs are generally taxable only in the US
- Greek pensions are taxable only in Greece
Totalization Agreement
The US-Greece totalization agreement coordinates social security coverage and prevents double social security taxation.
What the Treaty Does NOT Do
- Does not exempt US citizens from US tax (saving clause)
- Does not eliminate FBAR or FATCA reporting
- Does not make the non-dom regime available to everyone
- Does not change your US filing obligations
Practical Implications for Americans in Greece
Greece's high tax rates (up to 44%) make FTC valuable for standard tax residents. For non-dom regime participants, FEIE may be more attractive. The treaty's main practical benefit is reduced withholding on Greek-source income.
When to Get Professional Help
You should consider professional help if you have questions about treaty benefits, non-dom eligibility, pension taxation, or cross-border income.
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FileAbroad explains U.S. federal tax and U.S. international information-reporting consequences of documented foreign facts. It does not provide foreign-country legal or tax representation, valuation opinions, banking or remittance advice, or advice on what a foreign authority will accept.
Scope statement reviewed 2026-08-30 · FileAbroad product/content owner