Money in Greece

Personal experience

Ksenia Zisovich

Student

I have been living in Greece for 5 years. After graduating from high school in Russia, I entered Harokopeio University of Athens to study dietetics. I have a student residence permit, which gives me the right to work no more than 4 hours a day.

Taxes

Greece is one of the countries with the highest income tax and social contributions, and it’s also one of the top five countries in terms of property tax.

According to Tax Policy Raforms 2018 research, the average tax rate increased by 7.4% between 2007 and 2016 and now stands at 29%, while in the rest of the OECD (Organization for Economic Cooperation and Development) countries it is 23%.

The tax rate is different for salaried employees and self-employed individuals. It is important to note that Greece has a progressive income tax.

However, the basis of Greece’s budget is tourism, so income tax from renting out real estate and cars is the highest:

• up to 12 thousand euros – 15%
  from 12 to 35 thousand euros – 35%
  more than 35 thousand euros – 45

“The tax burden in Greece is quite serious: for example, if my salary is 1500€ per month, 308€ is income tax. Plus I will have to pay insurance and social security contributions – 38,27€”.

Yorgus Papanikolaos

Savings, deposits, investments

Greece is one of the most attractive countries for investors.

For example, if you buy one or more properties in Greece with a total value of more than 250,000€ (17,786,600₽), you can obtain a residence permit of the category “for investors” – for yourself and your family for 5 years with the possibility of further extension. This is advantageous for non-EU citizens, as they get the right to stay in the EU for an unlimited number of days, which a visa will not provide. But there are also disadvantages: the residence permit of this category does not give the right to work.

Despite this, 8 out of 10 Greek entrepreneurs noted that they are not going to make significant investments in the near future. According to Grant Thornton’s research, this is due to the high tax rate and Greeks’ caution due to the crisis.

“Greece is a politically unstable country with high taxes. We are afraid to invest. But more often than not, my acquaintances invest in real estate, which they then rent out to tourists”.

Yorgus Papanikolaos

Medicine

Health insurance is compulsory in Greece. Without insurance, you will not be able to see a doctor or call an ambulance. Therefore, all Greeks, as well as foreigners who have a residence permit or are officially employed, must have insurance.

There are two types of insurance in Greece – IKA and TEBE.

IKA is an insurance for employees and is fully paid by the employer. The cost varies from 200 to 800€ per year and depends on age, gender and working conditions. Most people have it and will not be hired without it.

Private entrepreneurs are obliged to pay for their own insurance for YOU, here the price depends on the amount of annual income.

The holder of state insurance, IKA or Tebe, does not have to pay for specialist consultations and the simplest procedures in the hospital. But it is important to remember that appointments with doctors are made about a month in advance and sometimes even more. However, when it comes to serious cases, such as calling an ambulance, resuscitation or expensive drugs, you will have to pay from 12% directly to the cashier’s office, for childbirth – about 30%, for surgery – about 40%. The same insurance does not cover dental services.

You can also buy private voluntary insurance costing 1000-1500 € per year (depends on your age and occupation). This insurance is more reliable and covers almost everything.

I have a student residence permit and I am not officially employed in Greece, so I am obliged to renew my insurance every year when I apply for the renewal of my residence permit, which costs about 100€ from a private company. It covers part of the costs: I can make an appointment with a doctor at a public clinic and, if I have an IKA, I get simple procedures and specialist consultations free of charge.

“There is free medicine in Greece, but sometimes you have to wait up to 2-3 months for your appointment with a doctor. So sometimes it is easier to go to a paid specialist”.

Antonis Tsikas

Lodging

I live near the center of Athens. I was lucky to rent an apartment for 190€ (13500₽) a month plus utilities. But it will be hard to find an apartment at that price, they usually cost from 250 – 300€. The price also depends on the area: unfavorable areas in Athens are concentrated near the center, where prices will be much cheaper. The most expensive area is considered the north of Athens. With more willingness to rent apartments here to citizens of Greece, because they are considered more reliable than the newcomers.

Prices for buying an apartment start from 15,000 – 20,000€ (1,060,000₽ – 1,400,000₽): most likely it will be a studio, which needs major repairs and which is not always located in a good neighborhood. And the price tag for a studio that is immediately habitable starts at 50,000€.

Meals

There are several supermarket chains in Greece: Sklavenidis, Vasilopoulos, Masoutis, Marketin, Lidl. Lidl is a German supermarket and its prices are much lower than the others. Even so, Greeks favor the local supermarkets Sklavenidis, Vasilopoulos, Masoutis and Marketin. On average, I spend about 20€ a week on food – about 1500₽.

Transportation

In Greece, there is a single ticket for all means of transportation, with which you can travel for 90 minutes from the first time you use it. There are discounts for students and pupils of more than 50%. That is: a regular ticket costs 1.4€ (100₽), a student ticket costs 0.6€ (43₽). Unemployed and pensioners can use public transportation for free. To do so, you need an unemployment card.

If you use public transportation regularly, it is more profitable to buy a monthly pass for 30€ (2135₽), a student pass will cost 15€ (1067₽).

There are trains and buses for intercity travel, and you can get to the islands by ship.

That said, it’s sometimes more cost-effective to grab a cheap Ryanair airline ticket. For example, while the train fare between Athens and Thessaloniki is stable at 55€, airfares can start from 15€.

Education and children

In Greece, child allowance is calculated based on parental income and ranges from 40 to 70€ (2,800 – 5,000₽) per child.

for the first child. An additional 40-70€ for the second child, and 50-80€ (3,500-5,700 ₽) for the third and each subsequent minor child.

A child can only be enrolled in public kindergarten if both parents work. At the age of 4, children go to the preparatory class, and at the age of five they enter the zero grade. After that they are transferred to elementary school, where they study until the age of 11.

At school, the grading system differs depending on age. For example, up to 11, a child will receive grades on the A-C system. And in high school, his work will be graded on a 10-point system.

At the age of 12, children enter grammar school, where they study until the age of 16. After that they have a choice of going to a lyceum or a vocational school of two levels.

What are the differences between these schools?

Vocational school:

After it, you can get a secondary technical education and attend college. It has a simplified program, some subjects are not even present.

After the professional school of the highest level, you can enter the university, but you will have to exclude medical and legal areas. It has a more complicated program, but not as complicated as a lyceum.

Lyceum:

It is the most difficult to study in it, but it gives the right to enter any institute, if grades allow.

Children enter university on the basis of Panelinis exams, something like our USE. After graduation, students have the right to take these exams an unlimited number of times until they enter the desired institute.

In Greece public education is free, you have to pay only for kindergarten or private university.

Pension

In Greece, the pension is formed from the national pension (state payments) and supplementary pension, which is a pension based on the income from which contributions were made to the pension fund before retirement.

The main prerequisite for application is: age 62 and 40 years of work experience or age 67 and 15 years of work experience. There is also the possibility to take a reduced pension after reaching the age of 62 and 15 years of service.

The minimum pension in Greece is 300-350€ (21344-24900₽), equal to the country’s cost of living, while the average pension is 700€ (49800₽). The amount depends on the type of employment. For example, the high pension is for civil servants (800€), while private workers will have a lower pension by 150-200€. But it is worth noting that there are about 60% of Greeks with a pension below 700 euros. Pensioners who receive the minimum pension are entitled to social benefits of 150-200€.

Until 2009 Greece was the country with the most favorable conditions for pensioners: the average pension amounted to 2000 euros and was equal to 95% of the salary.

Salaries

According to research, the average salary in Greece is 1200 euros, but now there is an upward trend in salaries.

Entertainment

Athens has a lot of clubs, cafes, shopping centers and restaurants. So you won’t get bored here. In addition, the city often hosts various exhibitions and festivals.

There are a lot of places for walking: for example, the mountain Lykavitos, where you can go for free. Museums and all archaeological sites are free for EU students and the unemployed, while non-EU university students get a 50% discount. There are days on which anyone can visit a museum for free: it is better to check these dates on the internet before visiting.

Students are often given discounts to cinemas, bars, cafes.

At the beginning of the year, you can buy a gym membership at a big discount. I, for example, took a season ticket for 40€ (2850₽) for 1 year.

So

Greece has high taxes. For example, if your salary is 1500€ per month, then 308€ will be income tax, plus insurance and social contributions – 38,27€.
Tourism and real estate investments are very popular in Greece, but more often by foreign entrepreneurs.
About 5 years ago VAT in Greece increased to 23%, but for Greek-made products it remained at 13%.
In Greece there is compulsory medical insurance, but if you need to see a doctor for free, you will have to wait for about 1 month, and sometimes longer.
You can enter law school or medical school only if you studied in a lyceum.
The minimum pension in Greece is equal to the subsistence minimum and is 300-350€.
The highest salaries for bankers are more than 3000€.
If you think about your trip to Greece in advance, you can visit all museums for free.