Practice Areas

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The general anti-avoidance rules in Greek law – Article 38 Law 4144/2013

Under the article 38 of the Tax Procedure Code (KFD), a general provision against the abuse of possibilities and discretions of configuring legal relations provided by legislation to the extent that this aimed to tax avoidance and resulted to, due to non-taxation, to the non-payment of tax either in whole or in part, is introduced for the first time in Greek tax law. In particular, it is provided that while determining the tax amount, the tax authorities have the right to disregard any configuration of legal relations, which is artificially done (artificial manipulation) in order to avoid taxation and due...

07 Aug 2014

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General procedural formalities in changes of employer

in Labor & Employment, Special topics

In the case of “change of employer” the following procedures must be followed, in general: First of all a private agreement between the old and the new employer and the employee should be signed. In this agreement the old employer discloses the terms of the employment contracts, the new employer accepts them and undertakes all the obligations that arise (accumulated rights of the employee) and the employee accepts the change of employer. The above private agreement must be submitted to the Manpower Employment Organization (OAED) the day that the change of employer (following a buy our, a merger/acquisition etc) is finalized and the...

11 Jul 2014

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Registration of an international trademark

in Intellectual Property, Labor & Employment, Special topics

The registration of an international trademark requires an investigation in the database for international trademarks with respect to those countries where one wishes to have the trademark registered, so as to identify whether a similar trademark has already been registered. In order to file an application for the registration of an international trademark, the applicant must be a Greek citizen or a resident in Greece or a company or a partnership having a real and permanent establishment in Greece and must have already filed an application for registration or registered the same trademark as a Greek one (if the application is...

11 Jul 2014

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Brief practical description of main Greek company types

in Company Law, Special topics

1. Partnership (O.E. ) - The most common form of company without need for a capital (only a nominal capital). - Is copied by the French “Société en nom Collectif”. - Simple accounting. - Unlimited liability for members for the company debts. - All members are considered as “traders” so they have an obligation to be registered for social security and pay relevant fees. - Difficult to manage if there are disagreements between the partners. - Little separation between management and ownership. 2. Limited Partnership (E.E.) - Same as the O.E. with the difference that at least one of the members has limited liability; - Is copied by the French “Société en Commandite Simple”. - The limited partner is not allowed to participate...

11 Jun 2014

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The investment of N.C.H. Capital Inc. in Kassiopi, Corfu and its complications

in Real Estate, Special topics

The full possession and the occupation of the property in question with a surface of appr. 120 acres (489,560 sq. m.) in the area of Kassiopi, Corfu was transferred by an individual to the Greek State without consideration, in order to settle inheritance tax obligations. A little more than half of this property was classified as forest area by means of an act of the Corfu Forest Directorate. The remaining surface of the property was classified as agricultural and grass land. Within the property there is a lake with a surface of appr. 3,5 acres named “Vromolimni”. Moreover, within the 489,560...

11 Jun 2014

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Liability of Board of Directors of Greek S.A. companies

in Company Law, Special topics

Being a member of the Board of Directors of a limited liability company, means that originally, there is no liability whatsoever for any obligations the company shall have. A member, holds the meaning that, on the one hand, has officially the capacity of a single member (which means that has to be stated as “member” at the relevant publication of the Government Gazette), and on the other hand, not to participate actively at the company’s management and representation (which means not to sign any company contract, nor give instructions at the company’s staff, nor be liable for any payroll, nor to...

05 Jun 2014

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New Tax Procedure Code

In late July 2013 a Tax Procedure Code was adopted by the Greek Parliament, in principle applicable from January 1st, 2014 onwards. The new law aims at incorporating into a single text all the provisions relating to administrative procedures applicable to taxation (e.g. tax returns, tax assessment, collection of taxes, tax audits, surcharges, complaints and appeals etc.). The most significant amendments introduced by the law are the following: General Anti-Avoidance Rule (GAAR) A general anti avoidance rule is introduced for the first time into Greek tax law. According to this rule, the tax authority may disregard any artificial arrangement or series of...

05 Jun 2014

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New Real Estate Tax

From 2014 and for each year subsequent thereto, a new tax is levied on real estate property located in Greece, namely the Unified Real Estate Tax (U.R.E.T.), upon introduction whereof the current Real Estate Tax (RET) is abolished. U.R.E.T. is equal to the total sum of a) the main tax on each real estate plus and b) an additional tax on the total value of each taxable person’s rights on real estate property, on which U.R.E.T. is levied, and is mainly levied on the following rights on real estate located in Greece and owned either by individuals or legal persons or...

05 Jun 2014

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New Income Tax Code