In Greece, income taxes are progressive, meaning that as your income increases, so does the tax rate. Whether you’re an employee or self-employed, you’re required to pay taxes on your individual income according to your residency status. Permanent residents will be taxed based on the source of their income, whether it’s from Greece or elsewhere in the world.

Non-residents in Greece only need to pay taxes on their individual income earned within Greece. If you’re married, you’ll be taxed separately, though there may be some potential adjustments. For residents of an EU member state, if 90% of your personal income originates from Greece, you may be eligible for various deductions and credits.

You’re obligated to pay taxes in Greece if you meet any of the following conditions:

• You have permanent residence in Greece.
• You have spent more than 183 days in Greece during any calendar year.
• You’re employed or engaged in professional activities in Greece.
• You have a business or investments in Greece.
• Your annual income exceeds €3,000 from salaries, self-employment, pensions, alimony, or agricultural activities.

Apart from the aforementioned conditions, you must also pay taxes in Greece under the following circumstances:

• You own a car, motorcycle, boat, or aircraft in Greece.
• You own property in Greece.
• You’re a partner in a limited company in Greece.
• You’re purchasing or constructing a building in Greece.
• You earn income from renting a property or land in Greece.
• You own a swimming pool larger than 25 m2 in Greece.

For foreign residents or non-residents, taxes are only applicable to income earned within Greece, thanks to Double Taxation Treaties. Additional information on this matter can be found below.

Types of Taxes in Greece

These are the four different types of Greek taxes:

• Income tax,
• Capital tax (inheritance tax, tax on lottery gains, and tax on transfer of real property)
• Social security tax,
• VAT (Value Added Tax) on services and products in the country.

Income Tax in Greece

In Greece, employers are responsible for deducting taxes and national insurance contributions from their employees’ monthly wages. 

When it comes to social security, employers contribute 25.06% of the salary, while employees contribute 16 percent. 

On the other hand, if you are self-employed in Greece, you are required to make advanced payments towards your personal income tax, which will be reconciled on an annual report. Additionally, as a self-employed individual, you are responsible for paying your own social security contributions from your personal income. These contributions encompass unemployment, pension, and healthcare insurance.

Taxable income in Greece includes employment income, professional income, and investment income. 

Sources of income in Greece encompass real property, financial instruments, salaried services, business activities, mobile values, agricultural activities, services by professionals, and any other sources.

Tax Rates in Greece

Below are the tax rates in Greece for the year 2023. Take a look at the tables provided to find the applicable rates:

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Capital Gains Tax

For individuals, when a capital gain arises from the sale of a real estate property, it is subject to a fixed tax rate of 15%. On the other hand, for companies, a capital gain is combined with regular income and taxed at the applicable rate for regular income.

Non-Dom Tax Regime

Under the non-dom tax regime, individuals with high net worth (HNWIs) can enjoy certain advantages by relocating their tax residency to Greece. According to this rule, investors are required to pay a fixed tax of €100,000 annually, regardless of their total worlwide overseas. This regime is applicable for a maximum period of 15 fiscal years. The following criteria must be met:

1. Prior to transferring tax residency to Greece, you should not have been a tax resident of Greece for seven out of the past eight years.
2. You must provide evidence that you have invested at least €500,000 in real estate, transferable securities, business,
3. or shares in legal entities in Greece. It is permissible for a legal entity to have made the investment, as long as you hold the majority of the shares.
4. The investment must be made between the implementation of the non-dom tax regime for HNWIs on December 12, 2019, and three years after submitting your application.

By paying this fixed tax, you will be relieved of any further tax obligations related to income earned abroad, and you will also be exempt from inheritance or gift taxes on properties located outside of Greece.

Important Dates for Reporting and Payment

In Greece, the financial year spans from the 1st of January to the 31st of December of every calendar year. However, taxes are imposed in the following financial year.

Therefore, the tax year is the one that comes after the year of income. Tax returns must be filed by March 2nd following the end of the tax year. If you are an individual who solely earns income from wages, you are not required to file an annual return. Instead, your employer deducts the tax from your earnings and submits it to the tax authority on a monthly basis.

Similarly, companies are required to make quarterly advance payments. On the other hand, if you are self-employed, you need to file taxes five times a year – at the end of each quarter and at the end of the year.

Greece’s Double Taxation Treaty

When individuals invest in foreign countries, they may encounter a challenge known as “double taxation.” This occurs when both the source and residence countries impose taxes on the same income. To address this issue, there exists a solution called the Double Taxation Treaty. This treaty serves as a bilateral agreement that two countries can establish with each other. Its purpose is to prevent the imposition of double taxation on the same income. Under this agreement, the countries involved mutually determine which one will tax the income.

What does the Double Taxation Treaty Mean in Greece?

When more than two states seek to impose taxes on income, the state of residence must address the issue of double taxation. This can be achieved through the exemption method or the credit method.

Under the exemption method, income that is taxable in the state of source is exempt from taxation in the state of residence. On the other hand, the credit method entails subjecting income taxable in the state of source to tax in the state of residence. However, any tax imposed by the state of source is credited against the tax imposed by the state of residence on that income.

To prevent double taxation and allow for exemptions and reduced taxes, the Double Taxation Prevention Treaty comes into play. This treaty enables certain receipts such as interest, royalties, dividends, capital gains, and others to benefit from exemptions or reduced taxes.

In cases where a particular income is taxable under the Greek Income Tax Ordinance, but there is an exemption or reduced tax under a Taxation Treaty, the income will be taxed according to the provisions of the Taxation Treaty.

Greece has signed Double Taxation Treaties with numerous countries worldwide, encompassing income and capital. 

These countries include Albania, Austria, Armenia, Azerbaijan, Bosnia-Herzegovina, Belgium, Bulgaria, Canada, Croatia, Cyprus, China, Czech Republic, Denmark, Egypt, Estonia, France, Finland, Germany, Georgia, Hungary, Iceland, Ireland, India, Israel, Italy, Korea, Kuwait, Lithuania, Latvia, Luxembourg, Morocco, Malta, Moldova, Mexico, Netherlands, Norway, Portugal, Poland, Qatar, Russia, Romania, Saudi Arabia, San Marino, Serbia, Slovenia, Slovakia, South Africa, Spain, Sweden, Switzerland, Turkey, Tunisia, United Arab Emirates, Ukraine, United Kingdom, United States, and Uzbekistan.

Furthermore, Greece has agreements with Italy, Germany, Spain, and the United States concerning estates, inheritances, and gifts.

Frequently Asked Questions About Taxes in Greece

How can you file tax retuns as a non-residents of Greece? 

Non-residents can file their tax returns by appointing a tax representative who will file them with the Non-Greek Resident Tax Office in Athens. It is important to note that the taxpayer must have Greek source income, and the tax representative must be based in Athens.

What is the due date tax return due date in Greece? 

Individual income tax returns must be filed by 30 June following the year of income in Greece.

When is the tax year in Greece? 

The tax year in Greece runs from January 1st to December 31st. However, it is important to remember that the deadline for reporting tax returns on annual income is before June 30th of the following year.

What is the Value Added Tax (VAT) rate in Greece? 

The standard VAT rate in Greece is 24%, although there are some reduced rates for specific services.

What is the personal income tax rate in Greece? 

In Greece, the personal income tax rate is progressive and ranges from 9% to 44%.

Do investors from the EU need to pay taxes in Greece? 

Generally, yes. However, if you are an individual from a European Union country and 90% of your income is sourced from Greece, or if your taxable income is very low, you may be eligible for deductions or tax reliefs.

Do investors from the UK need to pay taxes in Greece? 

Greece has a Double Taxation Treaty (DTT) with the United Kingdom, which may provide exemptions or reduced taxes on certain gains and incomes. It is advisable to review the specific details of the agreement between the two countries.