Law 5338/2026 (Article 5G), published 6 October 2026, introduces significant amendments to the tax regime for inbound expatriates (Article 5B of Law 4172/2013) and the special 50% income exemption for first-time Greek tax residents (Article 5C). The new provisions clarify that the 50% exemption is forfeited retroactively if the individual ceases to meet the “non-resident for 7 of previous 8 years” condition due to a tax residence transfer under a double tax treaty tie-breaker rule. Crucially, the loss applies retroactively to the year of transfer, not prospectively. The law also extends the exemption to remote workers employed by foreign entities, provided they physically work in Greece. AADE Circular A.1211/2026 (12 October 2026) provides administrative guidance on the retroactive clawback mechanism, requiring amended returns within 60 days of the treaty-based residence determination.
Key Takeaways
- Retroactive Clawback: If a treaty tie-breaker reclassifies an individual as resident in another state for a year where they claimed the 50% exemption, the exemption is revoked for that entire year, triggering additional tax plus interest.
- Remote Worker Inclusion: The 50% exemption now explicitly covers digital nomads employed by non-Greek employers, provided they spend >183 days in Greece and have not been Greek tax resident in 7 of the prior 8 years.
- Amended Return Window: Taxpayers affected by a treaty residence determination must file corrected E1/E2 returns within 60 days of the competent authority decision, with interest at 0.5%/month but no penalties if voluntary.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement