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.

With deep expertise in Greek tax legislation, the team at TaxWise Greece assists individuals and businesses in determining their tax residency status and offering tailored guidance to meet their unique financial needs.

Given the extensive Greek international community, TaxWise Greece frequently supports expats and international businesses in managing their tax obligations, including:

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

Determining Greek Tax Residency

Clarifying your residency status is the first step toward tax compliance. The specialized team at TaxWise Greece is well-versed in helping clients navigate these criteria. Generally, you are considered a Greek tax resident if:

1. Your permanent home or center of vital interests is in Greece.
2. You reside in Greece for more than 183 days within a twelve-month fiscal year (consecutive or not).

For individuals considered tax residents in both Greece and another country, the situation becomes more nuanced, requiring careful application of the double taxation treaties Greece has established with over 50 nations to prevent being taxed twice on the same income.

Greek Tax Year & Filing Deadlines

The Greek tax year aligns with the Gregorian calendar (January 1st to December 31st). For most residents, tax returns must be filed between April and June of the following year. For those with business income, taxes are often paid in installments based on the earnings declared. 

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 more insights on taxation in Greece, visit this article. Alternatively, feel free to reach out to us with your questions or consult directly with our expert partners at TaxWise Greece!