Personal Income Tax in Greece
Information on who qualifies for resident and non-resident taxation in Greece, as well as the Professional Levy and Solidarity Levy...
Due to the economic crisis in Greece and in an effort to stop systemic tax evasion, the Greek government has implemented a significant number of new tax measures since 2010. In 2013, over twelve new measures were introduced and it is possible that further changes to the Tax Code will be implemented. The information indicated in this section is current as of March 15, 2013 and is intended to provide general information on Greek income tax. Any interested person should seek professional advice with respect to their particular circumstances.
According to Greek law, a person who is domiciled in Greece or resides in Greece for over 183 days within a tax year is considered to be a “resident” of Greece for tax purposes.
Non-residents of Greece are required to register as “residents abroad” and to submit documents proving that they are residents of another country for tax purposes. The documents required depend upon the country in which residence is being claimed and the contents of the bilateral treaty for avoidance of double taxation between Greece and that country. For specific information on these documents, please see the Greek Ministry of Finance website (in Greek) or the Greek Ministry of Foreign Affairs website.
Residents of Greece are subject to “world-wide taxation”, which is taxation of the income which they receive in Greece as well as of all income which they receive in any other country in the world.
Non-residents of Greece are only subject to taxation in Greece of the income which they receive in Greece.
According to the Greek Tax Code, taxable income includes salaries and certain benefits from employment, pensions, income from self-employment, alimony from a spouse (child support is not included), income from agricultural activities and rental income, as well as income from company shares, interest and royalties.
Other Payments to be Made from Income
Due to the current economic crisis in Greece, additional “extraordinary tax” measures based on income or professional activities have been implemented by the government, including the following:
This levy applies to all taxpayers with net income of over 12,000 Euros and is calculated on the net income of the taxpayer.
- Taxpayers whose net income is between 12,001 and 20,000 euros are subject to this tax at the rate of 1 percent of net income declared
- Taxpayers whose net income is between 20,001 and 50,000 euros are subject to a 2 percent solidarity levy
- Taxpayers whose net income is between 50,001 and 100,000 euros are subject to a 3 percent solidarity levy
- Taxpayers whose net income is over 100,000 euros are subject to a 4 percent solidarity levy
Self-employed taxpayers, whether registered professionals (such as doctors, engineers and accountants) or service providers (such as electricians and plumbers), shall pay a fixed annual professional levy in 2013 to the amount of 400 or 500 euros, depending upon the population of the location where the professional is domiciled. Even those who quit their profession during the year will be taxed for each month (a twelfth of the total) during which they were active.
In 2014, this flat fee levy will apply to all self-employed taxpayers who maintain B or C category accounting books, with the exception of farmers. Most self-employed taxpayers will pay a flat fee in the amount of 650 euros. Those self-employed taxpayers who hold agreements with three legal or physical persons or who receive 75 percent of their income from one such agreement will be subject to a professional levy of between 300 and 500 euros, depending upon the population of the location where the self-employed person is domiciled.
Foreign Residents and Non-Residents
Non-residents of Greece must ensure that they are registered as “residents abroad for tax purposes” with the Greek tax authorities. In order to do so, the non-resident taxpayer must provide the name and address of a resident of Greece to act as a forwarding address for their correspondence in Greece. The foreign resident must also submit a declaration form, as well as specific documents verifying that they are a resident of another country for tax purposes. The document which must be submitted depends upon the country of residence.
- For more information on the documents required for each country, please see the Ministry of Foreign Affairs website
Foreign income received by a resident of Greece will be added to the income received in Greece and taxed accordingly, unless a bilateral treaty for avoidance of double taxation applies between Greece and the country which is the source of that income.
Foreign pensions received by a resident of Greece are subject to taxation in Greece. However, a credit for tax payments made in the country which is the source of the pension may be available, depending upon the bilateral treaty for avoidance of double taxation which applies between Greece and the source country.