|
Income (€) |
Tax Rate |
|
0 – 10,000 |
9% |
|
10,001 – 20,000 |
22% |
|
20,001 – 30,000 |
28% |
|
30,001 – 40,000 |
36% |
|
40,001 and above |
44% |
Solidarity Contribution: This was abolished for most private sector employees but may still apply in specific cases. Social Security Contributions: In addition to income tax, employees and self-employed individuals must contribute to EFKA, the national insurance body.
2. Corporate Taxation
Businesses operating in Greece are subject to corporate income tax:
Corporate Tax Rate: 22% (as of 2025)
Withholding Tax: Dividends are typically taxed at 5%.
Loss Carryforward: Corporate losses can be carried forward for 5 years.
Special incentives apply to startups, green technology firms, and companies relocating to Greece under the “Digital Nomad” and Foreign Pensioner regimes.
3. Value Added Tax (VAT)
Greece applies the EU-wide VAT system on goods and services.
Standard Rate: 24%
Reduced Rates: 13% (e.g. food, energy, tourism), 6% (e.g. medicine, books)
Islands Discount: Certain Aegean islands benefit from reduced VAT rates.
All businesses with over €10,000 annual revenue must register for VAT.
4. Property Taxes
Owning property in Greece comes with ongoing tax obligations.
ENFIA – Unified Property Tax:
Applies to individuals and legal entities.
Calculated based on location, size, age, and use of the property.
Payable in up to 10 monthly installments annually.
Transfer Tax:
Buyers pay a 3% tax on the objective value of the property during the transfer.
Notary and legal fees are additional.
5. Tax Residency and Foreign Income
A person is considered a Greek tax resident if they:
Spend more than 183 days in Greece per year, or
Have their center of vital interests (family, business) in Greece.
Double Taxation Treaties:
Greece has agreements with over 50 countries to prevent double taxation. Foreign income must still be declared, but credits or exemptions often apply.
6. Filing and Deadlines
Annual Tax Returns: Typically due by June 30 each year, filed online through TaxisNet.
Electronic Invoicing: Mandated for many businesses under the myDATA platform by the Independent Authority for Public Revenue (AADE).
Installment Payments: Taxpayers can pay income tax in monthly installments.
7. Penalties and Compliance
Failure to comply can result in:
Fines for late filing or underreporting.
Audits, particularly for high-income earners and businesses.
Increased scrutiny of undeclared foreign assets.
Greece is part of the OECD Common Reporting Standard (CRS), enabling cross-border tax transparency.
Conclusion
The Greek tax system is steadily modernizing, with a focus on digital reporting, compliance, and transparency. Whether you're an individual taxpayer, business owner, or investor, staying informed and consulting with a tax advisor is crucial.
