Understanding Tax In Greece | Double Taxation

Navigating Greek tax laws can be complex, particularly for expats and foreign businesses operating in the country. Local business consultants play a vital role in simplifying these processes and ensuring compliance with Greek regulations. With deep expertise in Greek tax legislation, local tax experts can assist individuals and businesses to determine whether they qualify as Greek tax residents or foreign tax residents, while offering tailored guidance to meet their unique needs.

Given the extensive Greek international community — spanning Australia, America, the UK, and beyond — local tax experts frequently support expats and international businesses in understanding their tax obligations, including:

• Income Tax
• Capital Gains Tax
• Value Added Tax (VAT)
• Social Security Tax
• Wealth Tax
• Inheritance Tax
• General Tax Advice and Structure
• Double Taxation Agreements with countries such as the US, UK, Australia, Canada, and Israel
• Establishing Tax Residency
• Tax Compliance for companies and individuals
• Shipping and Vessel Taxation
• Greek Tax Incentives for Foreigners

The specialized team will be well-versed in helping clients clarify their residency status under Greek tax legislation. Generally, you are considered a Greek tax resident if:

• Your permanent home is in Greece.
• You have resided in Greece for more than 183 days within a twelve-month fiscal year, even if not consecutively.

For individuals considered tax residents in both Greece and another country, the situation becomes complex, requiring careful consideration of the double taxation treaties Greece has established with 56 other nations.

The Greek tax year aligns with the Gregorian calendar year, running from January 1st to December 31st. Tax returns for Greek tax residents must typically be filed by April 30 of the following year. For business income, tax must be paid in full based on the earnings declared, often in three installments.

Local tax professionals can guide you through the various tax types in Greece, including:

• Income Tax: Employers deduct the appropriate tax amounts from salaries each month for employees and businesses.
• Capital Tax: Gains from interest, royalties, lottery winnings, inheritance, or property transfers are taxed at rates ranging from 10% to 20%.
• Value Added Tax (VAT): Standard VAT is set at 24%, with some services qualifying for reduced rates.
• Social Security Tax: Employers contribute 25.06%, while employees contribute 16% of salaries.

For expats, foreign businesses, and even locals, working with a local Greek tax expert, like our trusted partner Tsaks Consulting, ensures all tax obligations are handled efficiently. Their team specializes in tax planning, compliance, and leveraging Greek tax incentives to help you optimize your financial strategy.

For more tips and insights on managing your business and taxation in Greece, visit this article. Alternatively, feel free to reach out to us with your questions - we’re here to offer you the guidance you need!

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This content has been created in collaboration with our partner Tsaks Consulting.