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Italy vs Greece: 7% regimes for foreign retirees 2026

Italy offers a 7% flat regime for 9 years to foreign retirees settling in a Southern municipality ≤ 20,000 inhabitants (Sicily, Calabria, Apulia, Sardinia…); Greece applies 7% for 15 years to foreign retirees from countries with an administrative agreement, with no municipal condition. Athens runs around €1,350/month for a couple, Bari/Lecce €1,600. For non-retired actives, Greece adds a non-dom regime at €100k/year flat, Italy the impatriate regime (40-70% income tax deduction).

Detailed comparison

Side-by-side comparison of taxation, cost of living and scores between the two countries.
Side-by-side comparison of taxation, cost of living and scores between the two countries.
Taxation
Dividend tax
5%, Edge to this country
26%
Capital gains tax
15%, Edge to this country
26%
Corporate tax
22%, Edge to this country
24%
Wealth tax
None
Yes, 0.2% per year on financial assets (domestic bollo and foreign IVAFE)
Direct inheritance
10%Scale1-10%
4%, Edge to this country
Cost and real estate
Monthly FIRE budget
€2,150, Edge to this country
€2,350
Cost-of-living score
59.8, Edge to this country
52.0
Reference city
Athènes
Rome
City-center 2-bed rent
€950
€900, Edge to this country
Safety and FIRE score
Insecurity
1.8
1.7, Edge to this country
FIRE Ultimate V3 score
103.9, Edge to this country
91.5

Verdict

  • Italy wins on duration and flexibility (impatriate regime 5+5 years, 40-70% deduction applicable nationwide; pension 7% limited to the South), depth of the public health system (universal SSN, WHO top 5) and density of international schools (Rome, Milan, Bologna).
  • Greece keeps the edge on pension duration (15 years vs 9), non-dom €100k flat regime for UHNW, cost of living (≈ 25% cheaper) and a more stable Mediterranean winter climate.
  • Verdict: Italy for active families + impatriate executives + retirees accepting the South; Greece for retirees > 60 with pensions > €30k/year + UHNW non-dom > €2M annual income.

Frequently asked questions about this duel

Does Italy's 7% regime work for all pensions?

Article 24-ter TUIR: flat 7% on any foreign pension (public or private) AND any foreign-source income (dividends, interest, capital gains, rentals) for 9 consecutive years. Requirements: residence in a Southern municipality ≤ 20,000 inhabitants (Abruzzo, Molise, Campania, Apulia, Basilicata, Calabria, Sicily, Sardinia) + not having been an Italian tax resident in the prior 5 years. Source: Agenzia Entrate Circolare 8/E 2024.

Does Greece's 7% regime cover French retirees?

Yes. Greek law 4714/2020 (Article 5B Tax Code) grants the 7% flat for 15 years to foreign retirees from countries with an administrative agreement with Greece — France qualifies via the 1963 bilateral treaty (updated 2017). Main requirement: not having been a Greek tax resident in 5 of the prior 6 years. Application via AADE (tax authority) before March 31 of the target year.

What does retirement cost in Lecce vs Athens?

Retired couple, comfortable mode (1-bed center + car + dinners): Lecce ≈ €1,600/month (rent €700-900, groceries €350, dining €250, transport €150, misc €200); Athens (Kolonaki or Glyfada) ≈ €1,350/month (rent €600-800, groceries €300, dining €250, public transit €50, misc €200). With €30k/year net pension + 7% tax, both work comfortably.

Which country for an active impatriate executive < 50?

Italy: impatriate regime (Article 16 TUIR rev. 2024) — 50% deduction on employment income up to €600k/year, 60% with a minor child, 5 years renewable once (10 years). Applicable nationwide. Requirements: not a resident in 3 of the prior 6 years + commit to 4 years in Italy. Greece: non-dom €100k flat regardless of worldwide income + €20k per dependent (Article 5A Tax Code) — relevant for > €2M annual income.

How does public healthcare compare between the two countries?

Italy: universal SSN, world top 5 (WHO Health System Index 2024 — joint #2), 9.4% of GDP on health (OECD 2025), 4.1 doctors/1,000 inhabitants, nearly free access after registration. Greece: universal ESY, 8.1% of GDP on health, 6.2 doctors/1,000 inhabitants (high density but uneven public hospital quality between Athens and rural areas), frequent recourse to private for specialties. Italy wins on consistent public quality; Greece on raw medical density.