What happens when an expat tax concession expires?

A temporary tax benefit creates two budgets: one while the relief applies and another when it ends. The second budget matters before you sign a long lease, take on a mortgage or choose school fees based on today’s income.

Put the expiry date on a calendar

Read how the scheme measures its duration. “Five tax years” is not necessarily sixty months from your arrival. Some rules count the arrival year even when you move late in that year; others measure a period from qualifying employment. Do not infer a legal expiry date from the short duration label in a comparison table.

Calculate the income gap

In a fictional example, annual cash after payroll deductions is €80,000 during a concession and €65,000 afterwards. The annual gap is €15,000, or €1,250 a month. If you save €1,250 each month for two years before expiry, you accumulate €30,000 before interest. That reserve buys time to adjust; it does not make a permanent €15,000 spending gap sustainable.

Relief can stop before its maximum duration

Changing employer, moving into self-employment, falling below a salary condition or changing tax residence can affect entitlement. The continuation rules differ. Before making the change, ask whether a new application is required, whether the old approval follows you, and whether a gap in employment matters. Keep the written response with your original approval.

Ask for two payroll models

Request the ordinary-tax calculation using the same salary, benefits and household assumptions as the special-regime calculation. A comparison with the country’s top marginal rate is not enough. Marginal rates apply to a slice of income; the average effective rate may differ substantially.

Plan the transition

1. At least a budget cycle before expiry, get the revised payroll estimate and review recurring commitments.
2. Separate loss of the concession from expected salary rises. A hoped-for promotion is not guaranteed compensation.
3. Check whether foreign income, reporting duties or investment treatment also change.
4. If considering another move, include the cost of moving, immigration permission and any residence history needed for the next scheme.

For example, Greece’s Article 5C applies for seven tax years and does not extend beyond that period. The Greek tax authority’s FAQ also explains employment changes and continuation within the remaining period. The useful question is how many eligible years you have left, not whether a new job restarts the clock.