Can anyone advise on what the tax ramifications are of taking a job in Athens with a Greek based company? I've been offered a great position but am just starting to do my due duilligence on the cost of living and figuring out how to compare the salary/bonus to what I was making here in the US. Any advice is welcome! I would be lving there for a minimum of 5 years.

Hi and welcome to the forum.

Well, all of us "overseas Americans" had to start somewhere. I find it rather difficult to make direct comparisons between salaries in different parts of the world - in part because it can be difficult to compare the various benefits, social insurances and general cost of living figures.

OK - the tax ramifications. Chances are you will be subject to Greek taxes, as you will be considered "tax resident" there. But, as a US citizen, you will also have to continue to report to the IRS every year. (The good news is that you get an extra two months to file simply by virtue of being outside the country on April 15th!)

Your Greek earned income (i.e. salary, including bonus and any expat perks) is subject to the overseas earned income exclusion - which means that you can exclude the first $80,000 or so from your AGI. You have to report your worldwide income, including any interest, dividends or other "unearned" income. And there is an exclusion for a "housing allowance" on top of the earned income exclusion.

For details, see IRS publication 54 or the instructions for form 2555 - all available on the irs website. In general, you can avoid most double taxation of the same income, thanks to various tax treaties between the US and most European countries, but it does take some getting to know the relevant tax forms.

You may also want to take a look at the website for the US Consulate in Athens. They very often have information available for US nationals living in the area and some of the "good things to know" about living in the country.
Cheers,
Bev

Another thing that makes it hard to compare cost of living is the style of living. My life in South Africa was so very different from my life in the US. Things that were cost considerations in South Africa, like going out to eat or to bars a lot, weren't important to me in the US, because I didn't do it very often. I would have told you that [I] 'wasn't the type' to go out for drinks with a group, or to parties, for that matter. But in a different atmosphere, with different friends, my activities changed. Six weeks vacation a year means not only more time off, but more in travel expenses.

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