Tax Obligations of American Citizens and Residents for Income Earned in Greece
Understanding Tax Responsibilities for U.S. Citizens with Income in Greece
If you are a U.S. citizen or resident earning income in Greece, you may be subject to tax obligations in both countries. Understanding your responsibilities under Greek tax law and the U.S. tax system is essential to avoid penalties and ensure compliance. At E CHATZIDIMITRIOU LLC, we specialize in providing expert legal assistance to Greek Americans dealing with international tax matters.
We offer online consultations and handle cases across Greece and Cyprus, ensuring that our clients receive professional guidance in Greek.
Contact us today at +13474034789 or email info@hatzidimitriouvirtuallaw.com to discuss your tax concerns.
Do U.S. Citizens Pay Taxes on Income from Greece?
The United States follows a worldwide income tax system, meaning that U.S. citizens and permanent residents (green card holders) must report their global income, including income earned in Greece. However, Greece also taxes income earned within its borders, leading to potential double taxation. Fortunately, the U.S.-Greece Tax Treaty helps prevent double taxation and provides tax relief options.
Common Taxable Income for Americans in Greece
If you earn any of the following types of income in Greece, you may have Greek and U.S. tax obligations:
•Employment income from a Greek employer
•Rental income from properties in Greece
• Dividends, interest, or investment gains
•Business income from self-employment in Greece
• Pension or Social Security benefits received from Greece
Each type of income may be subject to different tax rules in Greece and must also be reported to the IRS in the United States.
Greek Tax Obligations for U.S. Citizens and Residents
Do I Need to File a Tax Return in Greece?
As a U.S. citizen or resident earning income in Greece, you may need to file a Greek tax return (Ε1 form) with the Greek Tax Authorities (ΑΑΔΕ). Your tax liability in Greece depends on whether you are considered a tax resident.
✔ Greek Tax Resident: You pay tax on your worldwide income in Greece.
✔ Non-Greek Tax Resident: You only pay tax on income sourced from Greece.
To avoid Greek tax residency, you must prove that you spend less than 183 days per year in Greece and provide tax residency documentation from the U.S.
U.S. Tax Obligations for Americans with Income in Greece
Even if you pay taxes in Greece, you must still report foreign income to the IRS. The following key tax requirements apply to U.S. citizens and residents:
1. Filing a U.S. Tax Return (Form 1040)
U.S. citizens must report worldwide income on their annual IRS Form 1040, even if the income was earned in Greece.
2. Foreign Earned Income Exclusion (FEIE) – Form 2555
If you live and work in Greece, you may be eligible for the Foreign Earned Income Exclusion (FEIE), which allows you to exclude up to $120,000 (2023) of foreign income from U.S. taxation.
3. Foreign Tax Credit (Form 1116)
To avoid double taxation, you can claim a Foreign Tax Credit (FTC) for income taxes paid in Greece.
4. FBAR Filing Requirement
If you own a Greek bank account with a balance exceeding $10,000 at any time during the year, you must file a Foreign Bank Account Report (FBAR) – FinCEN Form 114.
5. FATCA (Form 8938)
Under the Foreign Account Tax Compliance Act (FATCA), if you hold foreign financial assets exceeding $200,000, you must report them on Form 8938.
U.S.-Greece Tax Treaty: How It Helps You
The U.S.-Greece Tax Treaty provides several tax relief benefits:
✔ Prevention of Double Taxation – Avoids being taxed on the same income in both countries.
✔ Tax Credits – U.S. taxpayers can offset Greek taxes paid.
✔ Lower Withholding Rates – Reduces taxes on dividends, interest, and royalties.
Understanding these treaty benefits is essential to minimize your tax liability and ensure compliance with both tax authorities.
How E CHATZIDIMITRIOU LLC Can Help You
Navigating tax laws in both Greece and the U.S. can be overwhelming. E CHATZIDIMITRIOU LLC provides expert legal guidance to ensure that you meet all tax obligations while maximizing tax-saving opportunities.
Our services include:
✅ Tax Consultation – Helping you determine Greek tax residency status
✅ Greek Tax Return Filing – Assisting in the submission of Greek tax returns
✅ U.S. Tax Compliance – Ensuring you meet all IRS reporting requirements
✅ FATCA & FBAR Compliance – Assisting with foreign account reporting
✅ Legal Representation – Resolving tax disputes with Greek and U.S. authorities
???? Schedule an Online Consultation
Call us at +13474034789 or email info@hatzidimitriouvirtuallaw.com. We offer online consultations and handle tax matters across Greece and Cyprus. Our legal team speaks Greek, ensuring clear and effective communication.
Frequently Asked Questions (FAQs)
❓ Do I Need to Pay Greek Taxes If I Live in the U.S.?
If you earn income in Greece, such as rental income or employment wages, you may owe Greek taxes. However, tax treaty provisions may reduce or eliminate your liability.
❓ How Do I Avoid Double Taxation?
By claiming either the Foreign Tax Credit (FTC) or the Foreign Earned Income Exclusion (FEIE), you can offset Greek taxes paid and reduce your U.S. tax burden.
❓ Do I Need to Report My Greek Bank Account?
Yes. If your Greek account exceeds $10,000, you must file an FBAR and possibly FATCA Form 8938.
❓ Can You Help Me File My Greek Tax Return?
Absolutely! We handle the entire tax filing process in Greece, ensuring compliance and accuracy.
Contact Us for Expert Legal Assistance
At E CHATZIDIMITRIOU LLC, we provide tailored tax solutions for Greek Americans. Whether you need tax compliance assistance or legal representation, we are here to help.
Call us today at +13474034789
Email us at info@hatzidimitriouvirtuallaw.com
Online consultations available
Serving clients across Greece and Cyprus