Do you need file US taxes from Greece? A Guide for Expats

Greece is a place of dreams with its beautiful coast homes lining the blue water only ever seen in photos; it’s no wonder you’ve even been here. Plus, the food is just to die for; who would fall in love with Mediterranean food? With all this excitement from moving and learning Greek, it would be no surprise if you haven’t thought about your US taxes or chosen to. Taxes in Greece are enough, but to file twice to two countries, we are sorry! However, MyExpatTaxes is here to help with the basics!

Life in Greece

What should you expect when you’re living in Greece? Expect some hot, dry summers (unless you’re near the sea) with mild, wet winters. Cities will have a more fast-paced lifestyle, while rural areas will have a more relaxed lifestyle. However, both are not nearly as fast-paced as in America. Expect to be invited to family-friendly events to indulge in the well-known Mediterranean cuisine. The architecture, historical sites, and well-developed transportation will wow you. Greece is known for being beautiful, open-minded, and accepting of foreigners, so expect to fall in love with the culture.

Remembering US Tax Obligations

Hey again, so US taxes are an obligation even from all the way in Greece. It’s so mandatory that it’s written in your little blue passport. To make it even more fun, if you are a foreigner that moved to the US, received a Green Card and then moved to another country, unless you renounced your Green Card you need to file from abroad to!

Getting down to business, what are the filing requirements or in other words how can you make it so you don’t need to file US taxes? Well, there’s a few ways to get out of filing US taxes, the most common way are thresholds, but the most annoying way is simply renouncing your citizenship. However, let’s get you informed about the thresholds first.  

Filing Thresholds for the US

US Thresholds are the bare minimum you need to be earning plus your marital status and age. For instance, if you’re single, under 65, and in 2023 you make about $14,000 in one year, you are required to file – as simple as that. However, if your income was under $13,850 even by one dollar, you would not have to file.

Filing Status	Threshold Amounts
Single	$13,850
Married Filing Jointly	$27,700
Married Filing Separately	$5
Head of Household	$20,800
Widowed	$27,700
Self-Employed	$400

If you have just been informed that you need to file, it’s really okay. It’s less scary and more annoying, but MyExpatTaxes has your back.

Talking US Tax Benefits

Look, filing US taxes maybe another thing to add to your list of tasks, but it can actually come with some benefits. For instance, if you have a family abroad, you could get some extra cash in your pocket. Yes, even as a US citizen living in the land of Greek gods, you still get to claim tax benefits as you have the same rights as any US citizen.

Becoming a Double Tax Avoider

You will still need to file US taxes and Greek Taxes, but to avoid being double taxed there are some helpful credits for US expats.

• Foreign Earned Income Exclusion (FEIE)
• Foreign Tax Credit (FTC)
• US-Greece Tax Treaty

The Foreign Earned Income Exclusion, or form 2555, is likely the tax benefit you will become most familiar with as it allows for you to exclude over $100,000 worth of foreign earned income! Although, if you claim this benefit, you cannot collect the refundable portion of the Child Tax Credit.

If you’re good at math, you’ll have no problem with the FTC as it manually calculates how much you have paid in Greek taxes, converts it to USD, and then deducts it from what you owe in US taxes.

Lastly, thankfully, the US and Greece have a tax treaty making it, so you could receive additional tax credits, exemptions, or reduced tax rates.

Getting your Family Credit

Child Tax Credit (CTC) is a credit that allows parents to get a little extra cash to help their kiddo. For your 2023 tax return, you can claim up to $2,000 of non-refundable CTC, but if you do not owe the IRS, you could receive up to $1,600 in refundable CTC. This credit can only come as a benefit to you and your family! So, what do you need?

• Your child must be under the age of 17 before the end of the tax year.
• Your child must have lived with you for most of the tax year
• Your child must also have a valid Social Security Number (SSN)

Don’t miss out on learning more about other benefits you can claim from just having a family abroad! Check out our blog with provides more details about CTC and other benefits!

Considering residency in Greece?

In Greece, you’re considered a tax resident if you’ve been in the country for 12 months minimum or if you are in alignment with the ‘vital interests.’ The terms for being in ‘vital interests’ are:

• Ownership of assets in Greece.
• Citizenship.
• Social security registration, either mandatory or voluntary.
• Children’s schools.
• Country where the family resides.
• Country where the family usually spends holidays.

Otherwise, you’re not subject to Greek taxes, and you’ll only be required to file US taxes. Woohoo!

US and Greek Tax Deadlines

All of these forms, but at this point, you’re probably wondering when you should file by. You’re in luck. Below is a list of US tax and Greece tax deadlines.

US Deadlines

• April 15: The deadline which is recommended and is mandatory if you owe taxes to the IRS
• June 15: This is an automatic 2-month extension for expats
• October 15: Extension you file in June for October
• December 15: Extension you file in October for December

Keep in mind, if the 15th falls on a weekend or holiday, generally the deadline will be moved to the following US workday.

FBAR Deadlines

• April 15: First deadline for FBARs
• October 15: Automatic extension until this date!

Greece Deadline

• June 30: Official one and only deadline to have your Greek taxes filed by.

Missing a Deadline: Penalties and Potential Solutions

If you’re not aware of the potential penalties that can come with not filing, this section will briefly explain the consequences of missing a deadline and the potential solutions.

It’s considered failure to file if you don’t:

• File your tax return on time
• Pay any tax you owe on time and in the right way
• Prepare an accurate return
• Provide accurate and timely filed information returns

If you think you have failed to file your US taxes, there are a few ways to get up to date, especially for expats. One of the most common reasons expats do not file US taxes is because they do not know. With that being said, if you are living abroad and have forgot about it, the Streamlined Procedure could be the right fix for you.

The Streamlined Procedure allows for you to file up to three past tax returns and six FBARs, which in turn makes you penalty fee and tax compliant once again!

There is also a program called the First-Time Abatement Program, which allows someone who made an honest mistake to be free of their late filing and payment penalty if they have been in good standing with the IRS for the prior three years.

Lastly, if you cannot get the penalty waived, you can phone the IRS to get some penalty relief. What you’ll need to have before calling is:

• The notice or letter the IRS sent you
• The penalty you want to be relieved
• The reasons you think the IRS should remove it

Studying in Greece

Studying abroad seems like a dream, but not for you; it’s becoming a reality for you. There’s no doubt that you have a lot on your plate, but don’t forget US taxes are also something you need to consider, even as a student. However, there are some US tax benefits you could potentially claim specifically as a student. Some honorable mentions:

• Tuition and fees deduction: allows you to deduct some of your tuition and other fees. However, you cannot claim this deduction when you’re filing as ‘Married Filing Separately‘.
• American Opportunity Tax Credit: For undergraduate students, for at least half the time it takes to get your degree or certificate.
• Lifetime Learning Credit: offers a non-refundable credit of $2,000 per tax return on qualified education expenses. Although, there are income restrictions for this credit.

Keep in mind, these credits are only allowed if the educational institution is listed on the IRS eligible educational institution and the expenses are deemed as qualifying expenses.

Investing in Greece as an American

Expats are held to strict guidelines for expats investing, but it’s still possible! There are many ways to invest your money while living abroad in Singapore. Once you learn the basic investing rules for expats, it’s easy – let’s get started! 

Common Ways to Invest in Greece: 

• Property: Greece is not entirely expensive, but it can be depending on where you are in Greece. However, if this is your dream, know that US expats can invest in real estate.
• IRAs/Roth IRAs: Expats can contribute up to $6,500 per year to their Retirement Accounts assuming you have enough taxable compensation to contribute and your Modified Adjusted Gross Income is under the threshold for Roth IRAs.
• US-based Stocks & Bonds: Straightforward investing can be done by keeping a US-based portfolio. When you invest in foreign investment products such as mutual funds based outside of America, Americans often have high fees and higher tax rates. 

Have you already invested in Greece or other foreign mutual funds? We’ve got you covered! MyExpatTaxes will help you use Form 8621 to report your investments (PFICs). 

File with the Experts at MyExpatTaxes

It’s can be quite a difficult journey when it comes to filing your US taxes from abroad, but with the MyExpatTaxes Base plan, it’s made quick and easy. With the average customer filing their US taxes in 30 minutes or less! You can sign up for free and check it out before committing to anything.