Greece is an attractive country for investors and individuals for many reasons, for example, its rich culture and history. Those interested in moving to this country must take into account the applicable taxes in order to conduct their business without hindrance. Therefore, it is worth having a look at the tax system applicable in Greece.
Tax obligations in Greece
In Greece, taxation depends on whether you are a resident or non-resident. You are liable to pay taxes in the country if you are in Greece for more than 183 days in a calendar year, if you carry out professional activities or are employed in the country and if your annual income exceeds 3,000 EUR. Other reasons include carrying out a business or investment activity, having a permanent residence or real estate in Greece, owning a vehicle or earning income from renting property.
Taxes for non-residents
Non-residents only have to pay taxes in Greece on income from Greek sources. Residents of European Union member states may be eligible for credits and deductions that take into account income from Greece equal to or exceeding 90% of their total income. In this case, a representative must be established to file tax returns through the Tax Office for Non-Greek Residents. The representative must have an office in Athens.
Various types of tax
There are several types of taxes in Greece, including income tax, VAT, capital tax and social security tax. Income tax can have various sources, including employment and investment. The cause of the tax liability can be economic activities, real estate transactions, movable property and financial instruments. Self-employed persons are liable to pay social security tax on both the employer and employee parts. Capital tax covers inheritances, gifts, lotteries and capital gains.
Progressive tax rates
Tax rates in Greece are progressive, i.e. the tax increases with the value of the income. The countrys legislation sets the following personal and corporate income tax rates: 9%, 22%, 28%, 36% i 44%. These apply to income in the brackets up to 10,000 EUR, 20,000 EUR, 30,000 EUR, 40,000 EUR and above 40,000 EUR. VAT has 4 basic rates. The standard rate is 24% and the reduced rates are 13% and 6%. These are used for food and pharmaceutical products, as well as medical equipment for the disabled. The 0% rate is used for educational, insurance and cultural services, as well as international transport.
Cooperation with the tax office
Those interested in starting a life in Greece or running a business should work with a tax bureau such as INTERTAX. The company provides detailed information about taxes in Greece on its website at: https://polishtax.com/taxes-in-greece-a-guide-for-foreigners/. By working with INTERTAX, you can focus on growing your business and be confident that your business will not result in penalties or other additional charges by the Greek tax authorities.
