FATCA and US Persons with Greek property — the deep dive.
Greek-Americans and US citizens with Greek property carry the most complex cross-border reporting burden of any diaspora group. FATCA, FBAR, Form 8938, automatic information sharing between Greek banks and the IRS — the framework is detailed, the penalties for non-compliance are real, and most Greek-American property owners we work with discover gaps when we look. Here's the picture.
This is the deep companion to our earlier FATCA for Greek-American property owners piece. That one covered the basics; this one goes into the specific reporting forms and the practical compliance map.
Who is a "US person" for these purposes
The IRS treats the following as "US persons" subject to worldwide-reporting obligations:
- US citizens — including dual citizens with Greek (or any other) nationality, regardless of where they live
- US tax residents — green-card holders, plus people meeting the "substantial presence" test (broadly, 183+ days in US over 3-year weighted period)
- "Accidental Americans" — people who acquired US citizenship at birth (born in the US, or born to a US-citizen parent) but who have lived their lives elsewhere and may not even hold a US passport
The accidental-American case affects a meaningful share of Greek-Americans — people whose parents were US citizens who returned to Greece, whose children inherit US citizenship and the associated reporting obligations whether they want them or not.
The three main reporting obligations
1. Form 1040 — annual US tax return on worldwide income
US persons file an annual US tax return reporting worldwide income, including Greek-source rental income, capital gains, and (eventually) sale proceeds. The US-Greece tax treaty provides relief from double taxation through foreign tax credits, but the filing obligation exists regardless of whether US tax is actually owed.
Practical thresholds: most US persons need to file 1040 if income exceeds the standard filing threshold (around $14,600 for single filers in 2026). Even Greek-American retirees with modest income may need to file because of the worldwide-income rules.
2. FBAR (FinCEN Form 114) — foreign bank account reporting
US persons with aggregate non-US bank accounts above $10,000 at any point during the year must file FBAR by 15 April (with extension to 15 October).
Greek bank accounts trigger FBAR for almost all property-owning Greek-Americans. The threshold is per-aggregate, not per-account — so two accounts each holding $5,500 trigger the filing.
FBAR is not a tax; it's an information report. But penalties for non-filing are substantial: up to $10,000 for non-wilful failures, much higher for wilful. The IRS has been more active on FBAR enforcement since 2015.
3. Form 8938 (FATCA) — foreign financial asset reporting
Separately from FBAR, Form 8938 filed with your 1040 reports foreign financial assets including bank accounts, investment accounts, foreign mutual funds, and certain other instruments.
Thresholds (2026, for unmarried filers living in US): $50,000 at end of year or $75,000 at any point. Higher thresholds apply for joint filers and for taxpayers living abroad.
Important: Form 8938 does not include Greek real estate held directly. It includes the Greek bank accounts you use to pay for that property and any Greek investment products. Holding real estate through a Greek corporation does trigger Form 8938 on that interest.
What Greek banks now report automatically
Greece signed the FATCA intergovernmental agreement in 2014. Since then, Greek banks have been required to identify US-person account holders and report their account information to the Greek tax authority, which forwards to the IRS.
This means:
- Your Greek bank knows you're a US person (you signed forms confirming this at account opening)
- Your Greek bank reports your account balance and interest income annually to the IRS via Greek tax authority
- The IRS has the data even if you don't file FBAR or Form 8938
- Non-compliance is more visible than it used to be
This is the change that's caught many Greek-Americans off guard. Greek bank accounts that quietly existed for decades are now visible to the IRS. The compliance gap shows up in audit selection algorithms.
The streamlined filing program
For Greek-Americans who have not been compliant historically, the IRS Streamlined Filing Compliance Procedures (introduced 2014, modified since) offer a path back into compliance with reduced penalties. Two versions:
- Streamlined Foreign Offshore Procedures — for non-residents (Greek-Americans living abroad). Generally no penalties for non-wilful past failures, just back filings and any actual tax owed.
- Streamlined Domestic Offshore Procedures — for US residents. 5% miscellaneous penalty on highest aggregate balance over the look-back period, but otherwise reduced sanctions.
Both require certification that past non-compliance was non-wilful — i.e., not deliberate evasion. The IRS scrutinises wilfulness claims; the certification should be made carefully with a US tax adviser experienced in international filings.
What goes wrong for Greek-American owners
The recurring pattern:
- "I never knew I needed to file FBAR" — discovered when applying for US passport renewal, mortgage refinance, or after an audit-trigger event. The good news: streamlined procedures usually resolve cleanly. The bad news: backfile costs and accountant fees can run €2,000-€8,000.
- Inherited Greek property creating new reporting that wasn't there before. The bank account opened to receive inheritance funds, the rental income from a let property, the sale proceeds — all newly visible reporting.
- Form 8938 thresholds tripped by sudden large balance. A property sale or inheritance that briefly pushes Greek-bank holdings over the threshold for one year.
- "Accidental American" situation discovered. Greek-resident person discovers they're considered US-person for tax purposes due to US-citizen parent. Resolution may include filing back-years and potentially formal expatriation (the latter is its own complex process).
- Joint accounts with non-US-person family members. Greek bank accounts held jointly with Greek-resident parents or siblings may require additional documentation to clarify ownership for reporting.
Practical compliance checklist for Greek-Americans with Greek property
- Confirm your status. Are you US-citizen, green-card holder, or accidental American? Document it.
- List all Greek financial accounts. Checking, savings, brokerage, life insurance with investment component. Note highest balance during the year.
- Identify reporting obligations. 1040 (yes, almost always). FBAR (yes if aggregate > $10,000). Form 8938 (yes if you trip thresholds).
- Engage US tax adviser experienced with international filings. Not your routine CPA — someone who handles cross-border. Annual fees typically $400-$1,500 depending on complexity.
- Coordinate with your Greek accountant on Greek-side tax filings. Information flows both ways.
- Document property values periodically. For eventual sale or inheritance, US cost basis matters.
- Plan major transactions with US tax in mind. Property sale, large inheritance, structural changes to property holding all have US tax implications worth getting advice on before you act.
Estate planning for Greek-Americans
The US estate-tax position interacts with Greek inheritance rules in ways that warrant specific planning. The US estate tax has a high exemption ($13.6M+ in 2025-2026) but applies on worldwide assets at death. Most Greek-American estates don't hit the exemption — but holding structures, lifetime gifting, and succession planning all warrant cross-border consideration.
The Greek 2025 inheritance reform (Law 5221/2025) added new options for diaspora families; the US side adds its own layer. See our pieces on 2026 diaspora inheritance and the broader Greek estate planning bundle.
Our role
We're not US tax advisers. We're not Greek tax advisers. What we do for Greek-American member owners:
- Annual documentation organisation in formats useful for US filings
- Coordination with your Greek accountant and your US international tax preparer
- Greek bank statement compilation for FBAR purposes
- Property-value documentation for cost-basis tracking
- Major-transaction coordination (sales, inheritance receipt) with both-sides advisers
The cross-border compliance picture is detailed but manageable with the right advisers and clean documentation. We coordinate; we don't advise. Schedule a 30-minute call.