The Ultimate Tax Guide For Greece: Everything You Need To Know
Last Updated on 14 January 2025
Did you know that in Greece, income tax rates range from 9% to 45% and apply to both residents and non-residents?
This comprehensive guide will demystify the Greek taxation system, providing invaluable insights on different types of taxes, filing dates and more.
Key Takeaways
- In Greece, income tax rates range from 9% to 45% and apply to both residents and non – residents.
- Types of taxes in Greece include income tax, property tax, value – added tax (VAT), payroll withholding tax, capital gains tax, and inheritance and gift taxes.
- Non – residents in Greece are only taxed on income earned within the country. If you become a permanent resident, you will be taxed on your worldwide income.
- Property taxes in Greece are generally lower compared to the United States, but there is an annual real estate holding tax known as ENFIA that can be among the highest in Europe.
- Double taxation treaties help prevent individuals from paying taxes on the same income twice if they earn income in Greece and have obligations in their home country.
Overview of the Greek Tax System
The Greek tax system consists of various types of taxes, including income tax for individuals and corporate income tax, consumption taxes, property taxes, and international taxation.
Types of taxes in Greece
Living in Greece brings you face-to-face with some taxes.
Here are some of them:
- Income Tax: It applies to the money you earn. The tax amount goes up as your income grows.
- Property Tax: If you have a house or land, you pay this tax. It is called the Unified Real Estate Ownership Tax (UREOT).
- Value-Added Tax (VAT): This tax gets put on goods and services when they get sold.
- Payroll Withholding Tax: If you give employees extra perks, you need to pay this tax.
- Capital Gains Tax: Profits from selling stuff like stocks, bonds, or property bring this kind of tax.
- Inheritance and Gift Taxes: If someone gives you a big gift or leaves you things after they die, these taxes come into play.
Who pays taxes in Greece?
In Greece, many people have to pay taxes.
Both Greeks and foreigners must pay them.
If you live in Greece for over 183 days each year, you are a tax resident.
This means you need to pay taxes on all the money you make around the world.
People who do not live in Greece for that long only have to pay tax on the money they earn in Greece.
They are called non-residents. Companies also have rules about paying taxes here too!
Greek companies must give a part of their total global income as tax, while foreign firms just pay based on what they earn from their business done within the country.
Income tax for individuals
In Greece, you pay an income tax on the money you earn.
The rate goes from 9% to 45%.
This means that as you make more money, your tax also gets bigger.
If you live in Greece all the time, this rule applies to all your earnings from any place in the world.
If you do not live in Greece full-time, only money earned in Greece is taxed.
Corporate income tax
Resident corporations in Greece need to pay taxes on all the money they make, no matter where it comes from.
Non-resident corporations only have to pay taxes on the money they earn in Greece.
The corporate income tax rate in Greece is 22 percent, which is lower than the average rate in other countries.
Controlled foreign corporation rules are not very strict in Greece and only apply to certain situations.
If you’re a digital nomad or expat doing business in Greece, there’s a good legal and tax service system available for multinational companies and people with lots of money.
Consumption taxes
Consumption taxes are an important part of the Greek tax system.
These taxes are levied on goods and services that you purchase in Greece.
When you buy things like food, clothing, electronics, or go out to eat at a restaurant, you’ll be charged a consumption tax.
The main type of consumption tax in Greece is called the Value Added Tax (VAT).
It applies to most goods and services at different rates, depending on what you’re buying.
So when you’re living in or visiting Greece as a digital nomad or expat, it’s essential to keep in mind that these consumption taxes will be included in the prices you see for products and services.
Property taxes
Property taxes in Greece are generally lower compared to the United States.
However, it’s important to note that the annual real estate holding tax in Greece, known as ENFIA, is among the highest in European countries.
This means that if you own property in Greece, you will be required to pay this tax on an annual basis.
It’s a good idea to budget for this expense when considering purchasing property in Greece.
Keep in mind that the specific amount of property taxes you have to pay will depend on factors such as the value of your property and its location within Greece.
International taxation
If you’re a digital nomad or an expat living in Greece, it’s important to understand international taxation.
Nonresidents in Greece are only taxed on income earned within the country and are not exempt from the solidary tax surcharge.
This means that if you earn money outside of Greece, you won’t have to pay taxes on that income here.
However, if you become a permanent resident of Greece, you will be taxed on your worldwide income.
So, it’s essential to keep track of where your income is coming from and understand how it may be subject to taxation in different countries.
Income Tax in Greece
Learn about the tax rates for individuals, important filing and payment dates, real estate taxes, and double taxation treaties in Greece.
Discover everything you need to know about income tax in Greece.
Tax rates for individuals
As an individual resident or non-resident of Greece, it’s important to understand the progressive tax system that applies to your income.
This system means that the percentage of tax you pay increases as your income increases. The following table breaks down these tax rates.
| Taxable income (€) | Tax rate (%) |
|---|---|
| Up to 10,000 | 9 |
| 10,001 – 20,000 | 22 |
| 20,001 – 30,000 | 28 |
| 30,001 – 40,000 | 36 |
| Over 40,000 | 44 |
The rates in the table apply to both residents and non-residents of Greece.
- As a resident, you are taxed on your worldwide income.
- As a non-resident, you’re taxed on any income that you earn within Greece.
Whether you’re a digital nomad, an expat, or just working in Greece for a short period, understanding these tax rates is critical for financial planning.
Important filing and payment dates
Here are the important filing and payment dates to keep in mind when it comes to taxes in Greece:
- The tax return due date in Greece is June 30th, after the year of income.
- This means that individuals must file their individual income tax returns by this deadline.
- For U.S. tax purposes, Americans in Greece must pay any tax that may be due by April 15th.
Real estate taxes
In Greece, real estate taxes are an important part of the tax system.
One of the main taxes is called ENFIA, a yearly property tax that applies to both individuals and companies that own properties.
There is also a real estate transfer tax that is 3.09% of the taxable value when buying or selling property.
Additionally, there is an inheritance tax on real property, which ranges from 1% to 10% for close relatives and 0% to 40% for heirs.
Overall, it’s essential to be aware of these real estate taxes when considering investments or owning property in Greece as a digital nomad or expat.
Double taxation treaties
Greece has signed double tax treaties with 57 countries, including all EU states, India, and China.
These treaties help to prevent double taxation for individuals who earn income in Greece but also have tax obligations in their home country.
What this means is that if you are a digital nomad or an expat living in Greece, you won’t have to pay taxes on the same income twice.
Instead, you can take advantage of these treaties, which specify how your income will be taxed and ensure that you don’t end up paying more than necessary.
It’s important to note that Greece has a relatively narrow tax treaty network compared to other countries, but it still provides some protection against double taxation for individuals earning income in Greece.
Doing Business in Greece
When doing business in Greece, it’s important to be aware of the capital gains tax, as well as the tax exemptions available for non-domiciled individuals and investment options for residency.
Capital gains tax
If you’re a digital nomad or expat living in Greece, it’s important to understand the rules around capital gains tax.
Capital gains tax is the tax you pay on any profit you make from selling an asset, like stocks or property.
In Greece, both residents and non-residents are subject to capital gains tax.
This means that if you sell a property or investment while living in Greece, you’ll need to report the profit and pay taxes on it.
The rate of capital gains tax varies depending on the type of asset and how long you’ve owned it.
So, whether you’re thinking about selling your investments or considering buying property in Greece, make sure to factor in capital gains tax into your financial plans.
Remember: Capital gains tax is paid on profits from selling assets.
Tax exemptions for non-domiciled individuals
If you’re a digital nomad or an expat doing business in Greece, you’ll be glad to know that there are tax exemptions available for non-domiciled individuals.
These exemptions can help reduce your tax burden and make it easier for you to do business in the country.
The Ultimate Tax Guide for Greece provides detailed information on these exemptions, making it easy for you to understand and take advantage of them.
So, whether you’re starting a new venture or expanding your existing business in Greece, make sure to check out the guide and learn how you can benefit from these tax exemptions.
Investment options for residency
You have several investment options for obtaining residency in Greece.
One popular option is the Greece Golden Visa program, which requires a €250,000 investment in Greek real estate.
This program allows non-EU citizens to obtain residency in Greece through their investment.
The flat tax regime in Greece has made it an attractive destination for foreigners seeking tax-efficient residency options.
To apply for the Golden Visa, you need to select a property and investment option, as well as open a Greek bank account.
The program offers benefits to investors who are looking for EU residency opportunities.
Frequently Asked Questions About Taxes in Greece
Are you confused about filing taxes as a non-resident in Greece?
Want to know the tax return due dates and personal income tax rates?
Curious about VAT rates and taxation for EU and UK investors?
Find answers to these questions and more in our comprehensive guide.
Don’t miss out on important information that can save you time and money when it comes to taxes in Greece.
Read on to become well-informed about the Greek tax system.
Filing taxes for non-residents
If you’re a non-resident in Greece and earn income from Greek sources like renting property or working, you’ll need to file taxes.
Non-residents are only taxed on their Greek-source income.
This means that if you don’t have any income from Greek sources, you won’t be subject to taxation.
However, if you do earn income from Greek sources, it’s important to make sure you fulfill your tax obligations by filing your taxes correctly and on time.
This will ensure that you comply with the Greek tax laws and avoid any penalties or fines.
Make sure to gather all the necessary documents and consult with a tax professional or advisor who can guide you through the process of filing taxes as a non-resident in Greece.
Tax return due date
The tax return due date for individual income tax returns in Greece is June 30th of the year following the year of income.
This means that if you earned income in Greece during the calendar year, you must file your tax return by June 30th of the following year.
It’s important to note that this deadline may vary depending on the last digit of your tax ID number, so be sure to check with Greek authorities to determine your specific due date.
For U.S. taxpayers in Greece, it’s worth noting that they have a different tax year than the standard calendar year and must pay any taxes due by April 15th.
Tax year in Greece
In Greece, the tax year follows the calendar year.
This means that your income and expenses from January 1st to December 31st will be considered for taxation purposes.
As a digital nomad or expat living in Greece, it’s important to remember that you are required to file your individual income tax return by June 30th, after the year of income.
So, if you earned income in Greece during the previous year, make sure to report it and fulfill your tax obligations by this deadline.
Keep in mind that permanent residents in Greece are taxed on their worldwide income, so any earnings you have outside of Greece may also need to be included in your tax return.
Value-added tax (VAT) rate
In Greece, the value-added tax (VAT) rate is 24%.
This means that when you buy goods or services in Greece, you will need to pay an additional 24% of the purchase price as VAT.
However, it’s important to note that Greece has reduced VAT rates for certain goods and services.
For these items, the VAT rate is either 13% or 6%, depending on the category.
So before making any purchases, make sure to check if there are any reduced VAT rates applicable.
Personal income tax rate
The personal income tax rate in Greece is based on a progressive system, which means that it varies depending on your income.
The rates range from 9% to 44%.
This means that the more you earn, the higher the percentage of tax you will need to pay.
It’s important to keep this in mind when planning your finances and budgeting for living or working in Greece.
Taxes for EU and UK investors
Greece offers a favorable tax regime for EU and UK investors looking to invest in or set up businesses in the country.
Below is a detailed guide to understanding the tax responsibilities for EU and UK investors:
| Tax Type | Description |
|---|---|
| Corporate Income Tax | Resident companies are taxed on their worldwide income, while non-resident companies are only taxed on their Greek-sourced income. The current rate is 24%. |
| Capital Gains Tax | Capital gains from the sale of shares are taxed at a rate of 15%. For real estate, the rate varies between 15% and 45% depending on the period of ownership and the value of the property. |
| Value Added Tax (VAT) | The standard VAT rate is 24%, with reduced rates of 13% and 6% applying to certain goods and services. Non-resident companies may be required to register for VAT. |
| Withholding Tax | Withholding tax applies to certain types of income, such as dividends, interest, and royalties. The rate varies depending on the type of income and the recipient’s country of residence. |
| Double Taxation | Thanks to double taxation agreements, non-residents in Greece are only subject to paying taxes on their income in the country. This helps to avoid double taxation for UK and EU investors. |
Navigating the tax system in Greece can be complex.
Therefore, it’s advisable to seek professional guidance when planning your investment strategy to ensure tax efficiency.
Conclusion and Additional Resources
In conclusion, understanding the Greek tax system is crucial for digital nomads and expats living in Greece.
From income taxes to property taxes, it’s important to know your obligations and deadlines.
Remember that both residents and non-residents are subject to the same tax rates.
For more information and resources on navigating the Greek tax system, check out the Tax Foundation’s tax data explorer tool.
Stay informed and ensure you fulfill your tax obligations while enjoying life in Greece!
Frequently Asked Questions
What are the income tax rates in Greece?
Income tax rates in Greece depend on your annual income. It changes based on how much you make every year.
How do I pay taxes if I am a foreigner living in Greece?
Foreigners can pay taxes in Greece by filing their tax returns at the end of the year. A guide for foreigners is provided to help understand this process.
Who counts as a Greek tax resident?
If you live or work more than 183 days per year in Greece, you become a Greek tax resident.
Do Greeks need to pay taxes on foreign income too?
Yes! As a Greek tax resident, even the foreign income gets added to my regular income. Therefore, it will be taxed according to the Greek Income Tax Ordinance.
What is non-dom tax regime case like for real estate property owners?
Non-dom regime allows ones who have moved their tax residence to Greece, including real estate property owners not having an obligation for inheritance or gift tax over properties outside of Greece up until they’ve been a resident of Greece for seven years
Do self-employed people also need to file their annual return?
Yes! Self-employed individuals and companies in Greece, just like employers must file returns on your annual income with local authorities so that correct amount oftax could be calculated from their total incomes.
