| Greece Income Tax The tax year in Greece is the same as the calendar year, i.e. 1st January to 31st December. Tax on an individual's income in Greece is progressive. In the case of an individual who answers the test of a "permanent resident" of Greece, tax will be calculated on his income earned in Greece and overseas. An individual whose income is only from a wage is not obligated to file an annual return. The employer deducts tax from the employee and transfers it to the tax authority every month.
Greece Income tax rates for 2009:
0.00% for the first EUR 12,000
25.00% from EUR 18,000 to EUR 45,000
35.00% from EUR 45,001 to EUR 75,000
40.00% over EUR 75,001
Certain deductions are permissible for 2009 including:
- social security contributions in full,
- life insurance premiums up to EUR 1'200 for both spouses,
- interest payments on mortgages signed up to 31 December 1999 are fully deductible but only for one principle home in the taxpayer's lifetime,
- interest payments on mortgages signed between 1 January 2000 and 31 December 2002 are fully deductible if the home is no bigger than 120m2, if bigger the deductible interest is reduced proportionally,
- under certain circumstances, a tax credit is applicable for interest payments on mortgage loans taken after December 2002,
- certain cash donations to institutions and charities are also deductible.
Tax credits for 2009:
- 20% of the annual medical expenses of the taxpayer and his dependents up to a maximum of EUR 6,000,
- 20% of the annual home rent up top a maximum of EUR 240,
- 20% of the annual rent paid in respect of dependent children who are studying at a Greek school or university up to a maximum of EUR 240,
- 20% of the educational expense for a taxpayer and his dependents up to a maximum of EUR 240,
- under certain circumstances, a tax credit is applicable for interest payments on mortgage loans taken after December 2002,
- 20% of the expenses for converting an oil heating system to natural gas or solar power or for the purchase of power generating systems using renewable energy sources up to a maximum of EUR 700,
- 20% of alimony payments up to EUR 600.
The first non-taxable bracket is increased by:
- EUR 1,000 for one dependent child
- EUR 2,000 for two dependent children
- EUR 10,000 for three dependent children
- EUR 1,000 for each additional child
Filing date:
Between May 4th and June 1st, in the year following the tax year (for employees).
Greece Corporation TaxCorporations in Greece are taxed on their income in Greece and from overseas. Foreign companies in Greece are taxed only on income that is generated in Greece.
Beginning 2010, the rate of corporate tax is 24%.
Greece Capital Gains TaxA capital gain in Greece is added to regular income and is taxable at the same rate as regular income for a company, other than in specific instances as defined in law.
Greece Withholding TaxGreece does not impose withholding tax on corporate dividends paid to foreign investors. It does impose withholding tax on interest and royalties. The rate of tax may be affected by income tax treaties.
VAT in Greece (Value Added Tax)The standard rate of VAT is 19% and the reduced rates are 9%, 4,5% or a reduction of 30% of any of the three rates, may apply in certain circumstances.
Social SecurityResidents and non-residents working in Greece are required to pay social security contributions on their gross salary in Greece or in the country of their employer after an E101 has been issued.
Social security rates for 2009:
- 16.00% for white collar employees on their wages up to EUR 5'543.55,
- 28.06% for employers up to the same ceiling.
Contributions have to be paid to the Social Insurance Institution (IKA) which provides benefits in the case of unemployment, sickness, disability, retirement and death. The monthly ceiling of EUR 5,543.55 is applicable from September to December 2008.
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