Do social contributions apply under Article 5C?

Yes — EFKA social contributions (~16% employee, ~22% employer) still apply to Greek employment income under Article 5C. The 50% exemption only affects income tax, not social security. Self-employed DNV holders pay EFKA on their reduced taxable base.

Greek Article 5C — 50% Reduction

Greece's 50% income exemption under Article 5C of the Greek Tax Code for inbound employees and self-employed relocators. Active 7 years, applied to Greek-source income, with an effective rate of ~22% on €80,000 salary after the reduction.

Article 5C of Law 4172/2013 exempts 50% of Greek-source employment and self-employment income from Greek tax for 7 years. Standard progressive rates (9%–44%) apply to the remaining 50%. Effective rate on €80,000 salary works out to about 22%. Available to applicants who haven't been Greek tax residents in any of the prior 7 years.

Income exemption: 50%
Duration: 7 years
Effective rate on €80k salary: ~22%
Eligibility: New residents, last 7 yrs

How Article 5C works

Greece's Article 5C (sometimes called the "50% rule") was introduced in 2020 to attract inbound talent. The mechanics differ from Spain's Beckham or Italy's Forfettario: instead of a flat rate, Article 5C reduces the taxable income by 50%, then applies standard progressive Greek IRS rates to the remaining half.

50% exemption applied to Greek-source employment income, self-employment income, and director fees.
Standard progressive rates on the remaining 50%: 9% up to €10,000, 22% up to €20,000, 28% up to €30,000, 36% up to €40,000, 44% above €40,000.
7-year clock from the year you become Greek tax resident under the regime.
Social contributions: ~16% employee EFKA contributions on Greek income still apply.
Foreign-source income: outside the Greek tax base under most double-tax treaties.

Worked example: €80,000 Greek employment income

Under Article 5C: taxable income = €40,000 (50% reduced). Progressive rates: €10,000 × 9% + €10,000 × 22% + €10,000 × 28% + €10,000 × 36% = €9,500 income tax. Effective rate: 11.9% of gross €80,000. Plus ~16% EFKA = ~28% all-in. Compare to standard regime: roughly €17,800 income tax + €12,800 EFKA = €30,600 (38%). Article 5C saves about €7,800/year on this profile.

Article 5C vs Article 5A (the 7% pensioner regime)

Greece runs two parallel inbound regimes that get confused:

Article 5C: 50% exemption on Greek-source income from active work (employment, self-employment). 7-year duration. For working-age inbound applicants. This page.
Article 5A: 7% flat tax on foreign-source pension income (foreign pensions specifically, NOT employment). 15-year duration. For inbound pensioners or anyone receiving a foreign pension.

For Greek DNV applicants, Article 5C is the relevant regime. Article 5A applies only to those with substantial foreign pension income, which is rare among DNV applicants who tend to be working-age remote workers.

Article 5C in the European picture

Greece's 50% exemption is one of 13 European DNV tax positions. Compare to Spain Beckham, Italy Forfettario, Portugal IFICI, and the rest.

Croatia 0 %

Foreign-income exemption

Foreign income exempt

Tax details

Iceland 0 %

Non-resident (under 183 days)

Foreign income exempt

Tax details

Romania 10 %

IT-sector exemption

All applicants

Tax details

Malta 10 %

Nomad flat tax

All applicants

Tax details

Cyprus 17 %

50% income tax exemption

17 years

Tax details

Portugal 20 %

IFICI (ex-NHR)

10 years

Tax details

Greece 22 %

50% income tax exemption

7 years

Tax details

Estonia 22 %

e-Residency company option

All applicants

Tax details

Spain 24 %

Beckham Law

All applicants

Tax details

Italy 30 %

Impatriati

All applicants

Tax details

All European DNV tax regimes

Go deeper on Greek DNV tax

Greece DNV tax page

Full Greece DNV tax mechanics: Article 5C, EFKA social security, standard progressive rates, and the 183-day rule

Greece DNV guide

Greece DNV pillar: income threshold, application path, family inclusion, the 7-year path to a Greek passport

European DNV tax comparison

Side-by-side comparison of all 13 European DNV tax regimes

Greece citizenship path

The shortest mainstream EU path to a passport: 7 years, B1 Greek, civics test, dual citizenship permitted

Looking at Greece more broadly than just tax?

Article 5C is the tax draw. The full Greece DNV picture includes the shortest mainstream EU citizenship path (7 years), family inclusion, and lifestyle in Athens, Thessaloniki, or the islands.

Greece DNV full guide

Article 5C: frequently asked questions

What is the Greek 50% rule?

Article 5C exempts 50% of Greek-source employment, self-employment, and director income from Greek tax for 7 years. Standard progressive rates (9%–44%) apply to the remaining 50%. The effective rate on €80,000 salary works out to about 12% income tax, ~28% all-in with EFKA social contributions.

How long does Article 5C last?

7 years from the year you become Greek tax resident under the regime. After year 7 you fall back to standard progressive Greek IRS rates on the full income.

Who qualifies for Article 5C?

New tax residents who haven't been Greek tax residents in any of the prior 7 years. The applicant must move to Greece to take up qualifying employment or self-employment and become a Greek tax resident.

Can DNV holders use Article 5C?

Yes, Greek DNV holders who take up qualifying Greek employment or self-employment activity and become Greek tax residents can apply. Apply via AADE (Greek tax authority) within the year of relocation, providing documentation of prior non-residence and the new Greek activity.

What is the difference between Article 5C and 5A?

Article 5C covers active work income (employment, self-employment). Article 5A covers foreign-source pension income at a 7% flat rate for 15 years. Different regimes, different target audiences — Article 5C is the relevant one for working-age DNV applicants.