Australia–Greece Tax Treaty: Is There One, and How to Avoid Double Tax

There is no double tax agreement between Australia and Greece. The only tax agreement between the two countries covers airline profits. So if you live in Australia and earn income in Greece, or the other way round, each country applies its own tax laws. Double tax is avoided mainly through foreign tax credits, such as Australia's foreign income tax offset. Here is how it works for the most common situations: rent from a Greek property, Greek pensions, selling or inheriting property in Greece, and moving between the two countries.

What agreements do Australia and Greece have?

• Airline Profits Agreement: signed on 5 May 1977 and in force since 7 April 1981. It only covers the profits of airlines operating between the two countries.
• Social security agreement: helps people who have lived in both countries qualify for pensions. It does not deal with income tax.

Greece is not on the list of countries Australia has a comprehensive double tax agreement (DTA) with. You can check Treasury's list of income tax treaties. Without a DTA, there are no reduced withholding rates, no treaty tie-breaker for residency, and no treaty dispute process between the two tax offices.

Australian residents with income from Greece

Australian residents are taxed on their worldwide income. Income from Greece must be included in your Australian tax return, converted to Australian dollars using the exchange rate when you received it or the ATO's average rate for the year. Greece may also tax income that comes from Greece. To avoid paying tax twice on the same income, you can generally claim a foreign income tax offset for the Greek tax paid.

How the foreign income tax offset works

• The offset is for foreign income tax you have paid on income that is also taxed in Australia.
• If your total foreign tax is $1,000 or less, you can claim it without further calculations.
• If it is more than $1,000, you can claim $1,000, or work out your offset limit: broadly, the Australian tax on that foreign income.
• The offset can't be more than the Australian tax on the foreign income. Any excess isn't refunded and can't be carried forward.

The ATO explains how to claim it in its foreign income tax offset instructions.

Rent from a property in Greece

Rent from a Greek property is taxable in Australia. You can claim the same kinds of deductions as for an Australian rental, such as interest, repairs, rates and agent fees, and you claim the offset for Greek tax paid on the rent. A net loss on a Greek rental can generally reduce your other Australian income. However, the negative gearing changes from 1 July 2027 may also apply to overseas homes bought after 12 May 2026, so check with us before you buy.

Example: Maria lives in Sydney and rents out an apartment in Thessaloniki. In Australian dollars, the rent is $10,000, her deductions are $2,000 and she paid $1,200 in Greek tax. She declares $8,000 of net foreign rental income. Her Greek tax is more than $1,000, so she works out her offset limit. At a 30% marginal rate plus the 2% Medicare levy, the Australian tax on $8,000 is about $2,560, so she can generally claim the full $1,200.

Greek pensions

A Greek pension received by an Australian resident is generally taxable in Australia. If Greek tax is withheld from it, you can generally claim the foreign income tax offset for that tax.

Selling property in Greece

As an Australian resident, you pay Australian capital gains tax on a gain from selling property anywhere in the world, including Greece. You work out the gain in Australian dollars, and the usual CGT rules apply, including the 50% discount for assets held more than 12 months (for gains up to 30 June 2027). If Greece taxes the gain too, you can generally claim the offset for the Greek tax. See our guide to capital gains tax on property.

Inheriting property in Greece

Australia has no inheritance tax, so inheriting a property in Greece isn't taxed in Australia. Greece may charge inheritance tax, but that is not an income tax, so you can't claim it as a foreign income tax offset. If you later sell the property, Australian CGT can apply. How the cost base is worked out depends on when and how the deceased acquired the property, so get advice before you sell. See also CGT on inherited property.

Living in Greece with income from Australia

If you are not an Australian resident for tax purposes, Australia only taxes your Australian-source income, at non-resident rates with no tax-free threshold. Because there is no DTA, Australia's standard non-resident rates apply:

• Interest from an Australian bank: 10% withholding tax.
• Dividends: no withholding on franked dividends; 30% withholding on the unfranked part.
• Royalties: 30% withholding tax.
• Rent from Australian property: you lodge an Australian tax return and pay tax at non-resident rates.
• Selling Australian property: CGT applies. Non-residents generally can't use the main residence exemption, and don't get the 50% discount on growth after 8 May 2012. The buyer must also withhold 15% of the price for the ATO, which counts towards your tax when you lodge.

Greece may tax the same income if you are a Greek tax resident, and any relief is under Greek law. Check with a Greek accountant.

Moving from Australia to Greece

When you stop being an Australian resident for tax purposes, you are generally treated as selling your assets that aren't Australian property, such as shares, at their market value on that day. You can choose to defer this, but then those assets stay in the Australian tax net until you sell them. Australian real estate stays taxable in Australia either way. Whether you have actually stopped being a resident depends on the residency tests, not just on where you are living. See how to work out your tax residency.

Greek banks or the Greek tax authority (AADE) may ask for proof that you are an Australian tax resident. The ATO issues a certificate of residency for this.

Checklist

1. Declare all your Greek income in your Australian tax return, converted to Australian dollars.
2. Keep Greek tax assessments and receipts as proof of the Greek tax paid.
3. Claim the foreign income tax offset, and work out your limit if your foreign tax is more than $1,000.
4. Keep records of what you paid for Greek property and any improvements, for CGT when you sell.
5. Get advice before you move overseas, sell, or buy property in Greece.

Our registered tax agents prepare returns with foreign income every week, including Greek rent, pensions and property sales. Get tax advice or see our tax return service.