Banks & Finances Greece

In Greece, foreigners can choose from several banks that provide convenient services and support in English, facilitating interaction. Among the most foreigner-friendly banks are the following:

 

Piraeus Bank – one of the largest banks in Greece, offers digital account opening via an online platform and mobile app, which is convenient for expats. Customer service and interface are available in English, allowing for easy account management. Piraeus Bank also offers a wide range of financial products, including investment and insurance services.

 

Alpha Bank – another major bank known for its convenient online services and myAlpha mobile app. The bank has specialized programs for foreign clients, including personalized financial consultations and products such as premium credit cards and investment accounts.

 

National Bank of Greece (NBG) – the country's oldest bank, offers simple and free accounts that can be opened both online and in branches. The bank also provides specialized accounts for students and foreign clients, making it convenient for expats.

 

Eurobank – actively supports foreign clients through digital platforms, offering services in English. Accounts can be opened online, and a wide range of products is available, such as credit cards and mortgage loans.

 

These banks provide convenient conditions for foreigners and expats, supporting digital services and English-language support.

The procedure to open a bank account is standard for most Greek banks, but some requirements may vary depending on the bank. Here are the general steps and documents needed:

 

Basic documents:

1. Passport or ID card — required to verify your identity.

2. Taxpayer Identification Number (AFM) — a Greek tax number that can be obtained from the local tax office. Without this number, it is impossible to open an account.

3. Proof of residence — this could be a recent utility bill, lease agreement, or a letter from the landlord confirming your residence.

4. Proof of income — a bank statement, employer’s certificate, or tax return. Some banks may also request proof of social security or a recent payslip.

5. Visa or residence permit — if you are not an EU citizen, you may be required to provide a document confirming the legality of your stay in the country.

 

Additional steps:

1. Bank visit — most banks require a personal visit to complete the account opening procedure. Some banks, like Eurobank, allow starting the process online, but a branch visit is still required for signing documents.

2. Minimum deposit — some banks may require a minimum deposit to activate the account. This is usually a small amount, such as 250 euros.

 

Online banking:

Most major banks, such as Piraeus Bank, National Bank of Greece, Alpha Bank, and Eurobank, offer convenient mobile apps and online banking in English. This makes account management easier for foreign clients.

 

Opening an account may require documents notarized and translated into Greek, so it is important to clarify requirements in advance with the chosen bank.

To withdraw cash with a foreign bank card in Greece, several important points should be considered:

 

Card compatibility: Most ATMs in Greece accept cards from major international payment systems, such as Visa, MasterCard, Cirrus, and Plus. American Express cards are less common, while systems like UnionPay and JCB are almost not used in Greece.

 

ATM withdrawal fees: Using a foreign card in Greek ATMs incurs a fixed fee, which typically ranges from 2 to 4 euros per transaction. This fee is charged regardless of other possible expenses, such as your home bank's fees for international transactions.

 

Currency Choice: When using ATMs, it is always recommended to choose the euro (local currency) rather than your home currency. This will help avoid additional costs due to currency conversion at unfavorable rates offered by the ATM (so-called dynamic currency conversion).

 

Cash Withdrawal Limits: ATMs in Greece usually impose limits on a single transaction, which can range from 600 to 840 euros. However, the maximum amount also depends on your bank's restrictions, so it's advisable to contact your bank in advance to clarify cash withdrawal limits.

 

ATM Locations: ATMs are widely available in major cities, popular tourist resorts, shopping centers, and airports. However, in remote areas and on small islands, ATMs may be less common or may run out of cash, especially on weekends and public holidays.

You can send money from Greece to another country via bank transfers or through specialized money transfer services.

 

Bank Transfer:

Most Greek banks, such as Piraeus Bank, Alpha Bank, and Eurobank, offer international transfer services. However, traditional banks may charge quite high fees (from 20 to 50 euros per transfer) and include hidden costs through inflated exchange rates. Additional fees may also be charged if intermediary banks are involved in the transfer process.

 

Online International Transfer Services:

To save on fees and get favorable rates, many people choose alternative online services:

- Wise (formerly TransferWise) — one of the most popular services, offering transparent fees (around 0.5% of the transfer amount) and exchange at the interbank rate. Transfers via Wise usually take from a few minutes to one business day.

- Revolut — another popular service that allows transfers with minimal fees. Suitable for those who frequently make transfers and use a mobile app.

- Western Union — allows sending money both online and in person at an office. Fees can vary depending on the amount and method of transfer.

 

Fees and Exchange Rates:

When sending money abroad, it's essential to consider not only the fixed transfer fee but also the difference in currency exchange rates. Often, traditional banks include hidden fees through inflated exchange rates. Services like Wise and Revolut offer more transparent conditions, showing the real exchange rate without markups.

 

Transfer Time:

The speed of the transfer depends on the chosen method. Online services like Wise can carry out transfers within a few minutes, while traditional bank transfers may take up to several working days.

 

In conclusion, if speed and saving on fees are important to you, consider using services like Wise or Revolut, and try to avoid using intermediary banks.

Foreigners can obtain a loan or mortgage in Greece, but the process requires meeting certain conditions and providing the necessary documents. Here are the key points to consider:

 

Conditions for Obtaining a Mortgage:

- The minimum age to obtain a mortgage is 25 years, and the loan must be repaid by the age of 58.

- The mortgage term can range from 6 to 30 years, depending on the loan amount and the borrower's financial situation.

- For foreigners, especially those who are not EU residents, a significant down payment is required, usually ranging from 20% to 50% of the property value. This depends on your status and creditworthiness.

 

Necessary Documents:

- Passport.

- Greek tax number (AFM) — it can be obtained at the local tax office.

- Proof of income, such as tax returns for the last two years or income statements.

- Proof of address (e.g., utility bill or rental agreement).

- Having an account in a Greek bank — this is a mandatory requirement for obtaining a mortgage.

 

Interest Rates and Loan Amounts:

- Interest rates for mortgages in Greece vary from 3% to 7.5% depending on the loan terms and your financial situation.

- The minimum loan amount starts from 10,000 euros, and the maximum amount usually does not exceed 80% of the property's value.

 

Particulars for non-residents and investors:

- Foreigners participating in the "Golden Visa" program can obtain a mortgage to purchase property worth from 250,000 euros, which also opens access to obtaining a residence permit in Greece.

- Non-residents, especially from non-EU countries, may face additional requirements such as a higher down payment.

 

Expenses and taxes:

- In addition to repaying the main loan, it is necessary to consider transaction costs: notary services, registration fees, as well as annual property taxes such as ENFIA.

 

Thus, foreigners can get a mortgage in Greece, but it is important to prepare for strict bank requirements and significant down payments.

Paying for large purchases in Greece, such as real estate or a car, requires certain steps and accounting for a number of costs associated with the transaction.

 

Real estate purchase

When buying real estate in Greece, it is necessary to consider not only the cost of the property but also additional expenses such as taxes, fees, and commissions. Here are the main steps:

 

- Money transfer: If you are purchasing real estate as a foreigner, you can use international money transfer services (such as Wise or brokerage companies) that offer favorable exchange rates and low fees. These services are especially useful for transferring large sums needed for property payments.

- Property transfer taxes: In Greece, when purchasing real estate, a transfer tax is levied, which is 3.09% of the property's value. If you are buying a new property, VAT of 24% may be applicable, but there are VAT exemption programs.

- Other expenses: Include notary and legal fees, registration fees, and agency commissions, which can reach 10-15% of the transaction value.

 

Car purchase

Paying for a car also involves following several rules and procedures:

 

- Cashless payment: Car purchases, especially new models, are most often made via bank transfer. The use of credit cards for large sums may be limited by the bank, so bank transfer remains the safest and most convenient payment method.

- Taxes and registration fees: When buying a car in Greece, it is necessary to account for VAT and registration fees. The amount of tax depends on the car's value and can vary.

 

For both transactions, it is extremely important to work with local lawyers or consultants who will help with the paperwork and ensure the legality of the transaction.

 

In Greece, you can pay using cash; however, there are a number of restrictions on large purchases. According to Greek law:

 

Limits on cash transactions: For the purchase of goods or services exceeding 500 euros, legal entities and individuals are required to use cashless payment methods, such as bank transfer, credit, or debit cards. This restriction applies to all large purchases, including real estate and cars.

 

Exceptions: In some cases, private individuals may agree on partial cash payment, but the full cost of large purchases, such as real estate or a car, must be transferred through the banking system, ensuring transaction transparency and minimizing tax-related risks.

 

Thus, although small purchases can be made in cash, cashless payment methods are preferred and mandatory for large transactions.

In Greece, foreigners can take advantage of various methods of saving and investing funds, including deposits, stocks, and bonds.

 

Savings and deposits

- Savings accounts offer relatively low interest rates but provide access to funds at any time. For example, interest rates on savings accounts in Greek banks can range from 0.5% to 4.25% depending on the conditions and deposit amount. This method is suitable for those who want access to their money in the short term but are not aiming for high returns.

- Fixed deposits allow you to allocate funds for a specific term at higher interest rates (e.g., 3.5% for 12 months), but with restricted access to funds until the deposit term ends.

 

Investments in Stocks

Investors can purchase stocks on the Athens Stock Exchange (ASE) and the Cyprus Stock Exchange (CSE). Greek banks, such as the National Bank of Greece and Piraeus Bank, offer services for buying and selling stocks, as well as managing investment portfolios. This option is suitable for investors willing to take on higher risks for potentially high returns.

 

Bonds

Greek government and corporate bonds offer the opportunity for stable income through regular coupon payments. Bonds are a lower-risk option compared to stocks, but the income from them is usually lower. Investing in bonds is suitable for those seeking stability and long-term returns.

 

Investment Funds

For those wishing to diversify risks, there are investment funds (including UCITS) that offer professional fund management and allocation of investments across different assets, such as stocks and bonds. These funds may offer higher returns through active management and risk diversification.

 

Thus, in Greece, there is a wide range of financial instruments for savings and investments suitable for different risk levels and goals.

In Greece, foreigners, like locals, are required to pay taxes if they earn income in the country or hold tax residency status. The main tax obligations for foreigners include the following:

 

Personal Income Tax

Foreigners residing in Greece for more than 183 days in a year are considered tax residents and are taxed on all their worldwide income. Income tax rates are progressive and range from 22% for incomes up to €20,000 to 45% for incomes over €40,000 per year. Tax is also levied on income from property rentals and other sources, such as interest and dividends.

 

Capital Investments and Capital Gains Tax

Capital gains from the sale of real estate are taxed at a rate of 15% of the profits. There are also capital gains taxes on the sale of stocks and bonds: for public companies, the rate is 10%, and for non-public ones, 15%. These taxes apply to both residents and non-residents.

 

ENFIA - Property Tax

Property owners in Greece, including foreigners, must pay an annual property tax (ENFIA) based on the market value of the property. Rates can vary from €0.0016 to €13.20 per square meter depending on the region and other factors.

 

Tax Benefits

Foreigners who invest substantial funds in real estate or business can benefit from special tax regimes, such as the "non-domiciled" regime, which allows for a fixed tax payment of €100,000 on income from abroad for 15 years. This is advantageous for those with significant assets outside of Greece.

 

Double Taxation

Greece has agreements to avoid double taxation with many countries, allowing one to avoid paying taxes in both Greece and the country of origin. This is relevant for income earned abroad.

 

These tax rules can vary significantly depending on residency status and type of income, so it's important to consult with a tax advisor for accurate calculation of tax obligations.

In Greece, foreigners, like the country's citizens, are required to file a tax return if they have a tax identification number (AFM), regardless of whether they received income or not. The process of filing a tax return for foreigners is as follows:

 

Obtaining a Tax Identification Number (AFM)

To start tax declaration, you must obtain a tax identification number (AFM). This is done through the tax office or online on the TAXISnet platform. AFM will be required for all tax transactions, as well as for opening a bank account and accessing many government services.

 

Declaring Income

All tax residents of Greece are required to file an annual tax return through the TAXISnet system between April and the end of June. The return (form E1) must include all income sources from the previous year, including salaries, rental income, investment income, and any other taxable sources.

 

If you did not earn income in Greece but have an AFM, you are still obligated to file a "zero" tax return. Failing to meet this requirement can result in penalties.

 

Methods of Filing a Return

Tax returns in Greece are submitted exclusively online through the TAXISnet system. To access the system, you must register and obtain an access code (kleidarithmos), which is issued by the tax office.

 

Deadlines and Penalties

The tax return must be submitted by June 30 of the year following the reporting period. Late submission results in penalties: from 100 to 500 euros depending on your status (individual or company), and interest is charged for each month of delay.

 

Features for Non-Residents

If a foreigner does not receive actual income in Greece (for example, if property is not rented out), a return is not required. However, those receiving income from sources such as property rental must file a return and pay taxes at the appropriate rates.

 

It is recommended to consult tax advisors for proper completion of the return, as legislation may change and the procedure can be complex to understand.

In Greece, there are specific rules and tax benefits for self-employed individuals and freelancers that can facilitate business operations.

 

Registration and Taxes

Freelancers are required to register with the tax service, obtain a tax number (AFM), and register their activity as self-employed. This can be done through the local tax office or online. Social insurance (AMKA) must also be arranged in order to receive medical and pension benefits.

 

Tax Rates

The tax system for self-employed individuals is progressive, with tax rates ranging from 9% to 45% depending on income levels. For example, income up to 10,000 euros is taxed at 9%, while income over 100,000 euros is taxed at 45%.

 

Social Contributions

Freelancers are required to make contributions to social funds (EFKA). These contributions cover medical services and pension coverage. Typically, they amount to about 26% of income.

 

Benefits and Deductions

Freelancers can claim tax benefits, including deductions for social contributions, business expenses (such as office rent or equipment purchases), and charitable donations. For digital nomads, there is a benefit of a 50% exemption from income tax for up to seven years.

 

Advance Tax Payments

Self-employed individuals must make advance tax payments throughout the year. These payments are credited at the end of the year when filing the tax return.

 

Thus, freelancers and self-employed individuals in Greece can take advantage of benefits and opportunities for tax optimization, however, it is important to comply with all tax and social obligations.