Overview: Mediterranean Tax Rivals
Greece and Portugal have both positioned themselves as attractive destinations for expats, retirees, and digital nomads. Both offer sunshine, affordable living, and tax incentives to attract foreign residents.
Portugal became famous for its NHR (Non-Habitual Resident) regime, though it was closed to new applicants in 2024. Greece responded with its own Non-Dom regime and other incentives. For standard taxation, both countries use progressive rates with social contributions.
Quick Comparison at €60,000 Salary (Standard Taxation)
| Metric |
🇬🇷 Greece |
🇵🇹 Portugal |
| Gross Salary |
€60,000 |
€60,000 |
| Income Tax |
~€14,900 |
~€16,200 |
| Social Contributions |
~€8,400 (EFKA 14%) |
~€6,600 (11%) |
| Total Deductions |
~€23,300 |
~€22,800 |
| Net Take-Home |
~€36,700 |
~€37,200 |
| Effective Rate |
~38.8% |
~38% |
Key Insight
- Very similar: At standard rates, both countries have comparable tax burdens
- Special regimes matter: Greece's non-dom and Portugal's NHR (for existing holders) can dramatically change the picture
- Cost of living: Greece is generally 15-25% cheaper than Portugal
- Digital nomads: Greece offers a 50% income tax reduction for 7 years
Special Tax Regimes
Both countries offer special tax incentives to attract foreign residents. These can dramatically reduce your tax burden.
🇬🇷 Greece Non-Dom Regime
Flat €100,000/year tax on worldwide income regardless of how much you earn
Requirements: Invest €500,000+ in Greek real estate, bonds, or business
Duration: 15 years
Best for: Very high earners (€300k+) who want predictable taxation
🇬🇷 Greece 50% Tax Reduction (New Residents)
50% income tax reduction for employees/self-employed relocating to Greece
Requirements: Not Greek tax resident in 5 of 6 previous years
Duration: 7 years
Best for: Remote workers and digital nomads
🇵🇹 Portugal NHR (Non-Habitual Resident)
Status: CLOSED to new applicants since 2024
Existing holders: 20% flat rate on Portuguese-source income, exemption on most foreign income
Duration: 10 years from approval
Note: Existing NHR holders can continue to benefit until their 10-year period expires
🇵🇹 Portugal Incentivized Tax Regime (2024+)
20% flat rate for eligible professions (tech, science, finance)
Requirements: Not Portuguese tax resident in previous 5 years
Duration: 10 years
Note: More limited than NHR, requires eligible employment
Who Wins at Different Scenarios?
Digital Nomad / Remote Worker (€50-100k)
Winner: Greece 🇬🇷
Greece's 50% income tax reduction for new residents is a game-changer. For 7 years, you'd pay roughly half the normal rate. Combined with lower cost of living, Greece offers exceptional value for remote workers.
Retiree Living on Pension (€30-50k)
Winner: Depends on NHR Status
If you have existing NHR status in Portugal, your foreign pension could be taxed at just 10%. Without NHR, Greece's lower rates at this income level make it competitive. Greece is also 15-25% cheaper for daily expenses.
High-Earning Executive (€200k+)
Winner: Greece 🇬🇷 (Non-Dom Regime)
Greece's €100,000 flat tax non-dom regime is unbeatable for very high earners. Whether you earn €300k or €3M, you pay €100k. Portugal would tax this at 48%+ on standard rates.
Investor Living on Dividends/Capital Gains
Winner: Greece 🇬🇷
Greece's 5% dividend tax and 15% capital gains tax crush Portugal's 28% on both. For a portfolio generating €100k in investment income, you'd pay €15k in Greece vs €28k in Portugal.
Standard Employee (€40-70k)
Winner: Close - Slight Edge to Portugal 🇵🇹
At standard rates without special regimes, Portugal's lower social contributions and more progressive brackets slightly edge out Greece. However, if Greece's 50% reduction applies, Greece wins decisively.
The Bottom Line
- New arrivals: Greece's 50% reduction makes it very attractive
- Existing NHR holders: Stay in Portugal until your 10 years expire
- Investors: Greece's investment income rates are far superior
- Budget-conscious: Greece offers 15-25% lower living costs
Cost of Living Comparison
| Expense |
🇬🇷 Athens |
🇵🇹 Lisbon |
| Rent (1BR City Center) |
~€700-900/month |
~€1,200-1,500/month |
| Rent (1BR Outside Center) |
~€500-650/month |
~€800-1,000/month |
| Groceries (Monthly) |
~€250-300 |
~€300-350 |
| Dining Out (Mid-range meal) |
~€12-18 |
~€15-25 |
| Public Transport (Monthly) |
~€30 |
~€40 |
| Overall Index |
15-25% cheaper |
More expensive |
Greece offers significantly lower living costs, particularly in housing. Lisbon has seen dramatic rent increases due to tourism and expat demand. Secondary Greek cities (Thessaloniki, Crete) offer even better value.
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