Greece Taxes 2022
All income taxes in Greece are progressive, which means that when you earn more money, your income tax rate rises. Below are details regarding taxes in Greece for foreigners.
You are subject to paying taxes in Greece if you:
- Have a permanent home in Greece;
- Are employed or engaged in professional activity in Greece;
- Have spent more than 183 days in Greece in any calendar year;
- Have an annual income of more than €3,000 (from salaries, self-employment, pensions, alimony, or agricultural activities);
- Have a business or an investment in Greece.
If you are a non-resident of Greece, you must pay taxes only on your Greek income. You may use the Greece Income Tax calculator to figure out the amount you have to pay. If you are married, you will be taxed individually, however, there may be some modifications.
As an employee or self-employed person in Greece, you must pay taxes on your income. If you want to have the status of permanent resident, your taxes will be determined by whether they are derived in Greece or another country. For permanent residency applications, you may want to look into the Golden Visa Greece guide.
If you are a resident of an EU member state and 90 percent of your income comes from Greece, you are eligible for certain deductions and credits.
Except for the already mentioned conditions for paying taxes, you also have to pay taxes in Greece in case of:
- Owning property in Greece;
- Owning a vehicle, motorcycle, boat, or plane in Greece;
- Purchasing or developing a house in Greece;
- Being a limited business partner in Greece;
- Possessing a swimming pool in Greece that is larger than 25 m2;
- Making a living by renting out a home or land in Greece.
Because of most Double Taxation Treaties, if you are a foreign resident or a non-resident, you are required to pay taxes on your actual income in Greece.
Types of Taxes in Greece
You can meet several types of taxes in Greece:
- Social security tax;
- Income tax;
- Valued Added Tax (VAT) on the country’s products and services;
- Capital tax (inheritance, property transfers, lottery gains).
Income Tax in Greece
In Greece, employment, professional, and investment sources of income are taxable. The sources of income can also be:
- Real estate property;
- Services provided by liberal professionals and other sources;
- Mobile values or financial instruments;
- Business activities;
- Services for a fee;
- Agricultural activities.
Employers in Greece are required to deduct the amount of tax and social insurance due from their employees monthly. The employer contributes 25.06% of the employee’s salary to social security, whereas the employee’s contribution to social security is 16%.
If you are self-employed in Greece, you have to make payments on your employment income tax. This personal tax will be offset on an annual report. You will pay your social security taxes out of pocket as a self-employed individual. In addition to this, unemployment, pension, and health care insurance are all part of the insurance package.
Tax Rates in Greece
Even though the cost of living in Greece is affordable for expats, the country still has taxes on their income. Here are the rates of taxes in Greece:
1. Greece tax rate for corporate and professional income, and employment and pensions income:
| Taxable income in € | Rate |
|---|---|
| Up to €10,000 | 9% |
| €10,000 – €20,000 | 22% on band over €20,000 |
| €20,000 – €30,000 | 28% on band over €30,000 |
| €30,000 – €40,000 | 36% on band over €30,000 |
| Over €40,000 | 44% on all income over €40,000 |
2. Income from capital (real estate, dividends, royalties, interest):
| Capital income | Tax rate |
|---|---|
| Dividends | 10% |
| Interest | 15% |
| Royalties | 20% |
3. Real estate property taxes in Greece:
| Taxable income in € | Rate |
|---|---|
| Up to €12,000 | 15% |
| €12,000 – €35,000 | 35% on band over €12,000 |
| Over €35,000 | 45% on all income over €35,000 |
Tax on Capital Gains
Capital gains are not taxed individually but are contributed to the company’s taxable income. Except as in the following circumstances:
- Gains on the selling of shares listed on a stock exchange are taxed at a 10% rate. This 10% tax is just a prepayment because the gains are subsequently taxed according to the normal regulations. In the case of these gains being distributed later, the corporation pays the usual company and dividend taxes and deducts this 10%.
- Sales of shares that are not listed on a stock exchange are taxed separately at a rate of 5% of the sale price. If this revenue is earned by a company, the additional 5% tax is treated as a prepayment, and the gains are taxed like every other taxable income.
- Profit from the sale of a right related to the company’s current operation is taxed separately at a rate of 20%. If the seller is a public limited company, the profit is taxed along with other income in this and the next instances.
- Profit from the sale of any kind of company, excluding a public limited company, and a business as a whole is taxed separately at a rate of 20%.
To sum it up, individuals will be taxed at a fixed rate of 15% on capital gains from sold real estate property. For companies, a capital gain is added to regular income and is taxed at the same rate as regular income.
Non-Domicile Tax Regime
Following the practices of countries like Cyprus, Italy, Malta, Portugal, and the United Kingdom, Greece implemented a “non-domicile” tax regime for foreign individuals who wish to transfer their tax residency to Greece by paying an annual flat tax on their foreign income, regardless of the amount, and with no obligation to declare their foreign income in Greece.
With this law, high-net-worth individuals might profit from the non-dom tax regime if they follow the Greece tax residency rules and relocate their tax residency to Greece. Also, investors pay a flat tax of €100,000 every tax year, regardless of their total foreign income. This regime is in effect for a maximum of 15 fiscal years.
To be eligible for the non-dom regime:
- You must have not been a tax resident of Greece for seven of the past eight years before moving your tax residence to Greece;
- You must confirm that you have invested at least €500,000 in real estate, business, transferable securities, or shares in legal companies in Greece. As long as you own the majority of the shares, the investment can be made by a legal entity.
Investment may be made at any time between the implementation of the non-dom tax system for high-net-worth individuals and three years following the submission of the application.
There will be no additional tax obligation for income generated overseas if you pay this fixed tax, and you will be free from inheritance or gift tax on properties situated abroad if you pay this fixed tax.
Important Dates for Payments and Reports
Greece’s fiscal year runs from January 1 to December 31 of the same calendar year. However, taxes are levied in the next fiscal year. The tax year follows the year of income. You have until March 2nd after the end of the fiscal year to file your tax returns. If you simply get income from a wage, you do not need to file an annual return; instead, your employer deducts the tax from you. The employer then transmits it to the tax authorities once a month.
Companies must also submit advance payments once every three months. If you are self-employed, you must submit taxes five times a year, at the end of each quarter and the end of the year.
Double Taxation Treaty in Greece
Individuals who invest in foreign nations may face the so-called “Double Taxation” issue: when both the country of origin and the country of residency charge individuals on the same income. This is also known as double taxation.
There is an agreement called a double taxation treaty to avoid this. This treaty/agreement is a bilateral agreement between the two countries stating that they are intended to avoid the same revenue from being taxed twice. Countries can determine between them on which can collect income taxes from an individual.
How Does Greece Approach the Double Taxation Treaty?
When more than two states are about to tax an individual’s income, the state of residence must prevent double taxation. It is possible through the use of exemption and credit methods.
Method of Exemption
Income that is taxable in the state of origin is not taxable in the state of residency.
Method of Credit
Income that is taxable in the state of origin is taxed in the state of residency. However, the tax imposed in the state of origin is deducted from the tax imposed in the state of residency on this income. Exemptions and reduced taxes on certain revenues, such as dividends, interest, royalties, capital gains, and others, are allowed under the Double Taxation Prevention Treaty.
If a certain income is taxable under the Greek Income Tax Ordinance but is exempt or subject to a lower tax under a Taxation Treaty, the income will be taxed following the Taxation Treaty.
Many nations around the world have signed Double Taxation Treaties with Greece. It has income and capital treaties with 57 nations, those being:
Albania, Armenia, Austria, Azerbaijan, Belgium, Bosnia-Herzegovina, Bulgaria, Canada, China, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Finland, France, Georgia, Germany, Hungary, Iceland, India, Ireland, Israel, Italy, Korea, Kuwait, Latvia, Lithuania, Luxembourg, Morocco, Mexico, Malta, Moldavia, Netherlands, Norway, Poland, Portugal, Qatar, Romania, Russia, Saudi Arabia, San Marino, Serbia, Slovakia, Slovenia, South Africa, Sweden, Spain, Switzerland, Turkey, Tunisia, Ukraine, United Arab Emirates, United Kingdom, United States, and Uzbekistan.
Greece also has inheritance, estate, and gift agreements with Germany, Italy, Spain, and the United States.
Frequently Asked Questions
How much tax do you pay in Greece?
Personal income tax rates in Greece are 9% when income is up to €10,000, 22% when income is up to €20,000, 28% when income is up to €30,000, 36% when income is up to €40,000, and 44% when income is above €40,000.
Are taxes high in Greece?
It depends on the amount of your annual income. In Greece, the individual income tax rate is progressive, ranging from 9% to 44%.
Is Greece tax-friendly?
In Greece, all of your income is taxed. The country’s income tax rates are progressive up to 44 percent, which implies that they rise in proportion to your earnings. Individual income might be derived through salary, pension, or company gains.
In addition, according to the Global Citizen Solutions Global Passport Index, the Greek passport ranks 45 followed by good results in three indexes: Enhanced Mobility, Quality of Living, and Investment, with the latter calculating 44% of personal tax rate in Greece.
Is Greece a tax haven?
Greece is making its attempts to attract foreign direct investments by offering tax incentives. The first provision in force is particularly incorporated in article 5a L.4172/2013. You can search the official Greek tax authority website to find more information.
How do taxes work in Greece?
In Greece, permanent citizens are taxed on their worldwide income. Individuals living in Greece are taxed on their earnings as employees, as well as on earnings as self-employed individuals.
How can non-residents of Greece file their tax returns?
Non-Greek residents can file their tax returns by selecting a tax representative. The tax representative can then submit them to the Non-Greek Resident Tax Office. It should be noted that the taxpayer must have a Greek source of income and that the tax representative’s tax office must be in Athens.
What is the tax return due date in Greece?
Individual income tax returns must be filed in Greece by June 30 following the fiscal year of income.
When is the tax year in Greece?
In Greece, the fiscal year runs from January 1 to December 31. Keep in mind that January 1 is not the deadline; you do not have to report tax returns on your annual income until the following year before June 30.
What is the rate of Value Added Tax (VAT) in Greece?
The VAT rate is 24%, although there are various reductions in the VAT rate for some services in Greece.
What is the personal income tax rate in Greece?
Individual income tax rates in Greece are progressive and range between 9% and 44% depending on your annual accumulated income.
Do investors from the European Union have to pay taxes in Greece?
Typically, yes. However, if you are an individual from a European Union nation and 90% of your income comes from Greece, or if your taxable income is relatively low, you may be eligible for specific deductions/tax reliefs.
Do investors from the United Kingdom have to pay taxes in Greece?
Greece and the United Kingdom have a Double Taxation Treaty (DTT). As a result, some gains and generated income may be exempt or subject to lower taxes. It is important to review the particular agreements made by the two countries to understand tax in Greece for UK expats.
