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Tax Law

Incentive for individuals (employees & sole traders) to transfer their tax residence to Greece

New article 5C of the Income Tax Code By virtue of Article 40(1) of Law 4758/2020, a new article 5C is added to the Income Tax Code, which provides a special method for taxing income from salaried work and business activity, acquired in Greece by natural persons who transfer their tax residence to Greece. The new provision provides for the following: 1. Any taxpayer, being a natural person, who transfers his/her tax residence to Greece shall be subject to taxation, as specified in paragraph 2 regarding income from salaried work acquired in Greece within the meaning of Article 5(1)(a), where all the conditions...

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Required documents for the Greek tax registration number (A.F.M.) issuance

The required documents to apply an individual for a Greek tax registration number (A.F.M.) in Greece are the following: 1. Form M1 "Application for tax number/ Change of Personal Data", including the following information: • personal information, ie surname, father name, date of birth, place of birth; • identity information, ie number of passport, date and authority of issuance; • nationality, profession and marital status; 2. Current residence address in Greece; it is not required any document proving your address in Greece (ie lease contract etc). The residence determines the local competence of tax office. 3. A transcript of your passport or your identity card. The above...

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Alternative taxation of income generated abroad for individuals who transfer their tax residence to Greece [Article 5A of Law 4172/2013]

A taxpayer (who is a natural person) who transfers his or her tax residence to Greece can be taxed in an alternative manner for income generated abroad, in other words all income not generated in Greece, provided all the following conditions are met: a) he or she was not tax resident in Greece during 7 of the previous 8 years prior to transfer of his or her tax residency to Greece, which is examined based on the records held by the tax administration and b) he or she proves that he/she or his/her relative (spouse and persons in the ascending or descending...

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Alternative taxation of income of natural persons who are beneficiaries of pension income from abroad

Alternative taxation of income of individuals who are beneficiaries of pension income from abroad and who transfer their tax residence to Greece - Procedure and conditions for inclusion [Article 5B of Law 4172/2013]. An individual recipient of pension income who transfers his or her tax residence to Greece can be taxed in an alternative manner for income that is generated abroad. Under the alternative method of taxation, each tax year the individual pays a tax at a rate of 7% for all income acquired abroad, unless that income is exempt from tax in the country of residence under the provisions of...

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New Tax on Pension Income of Non-Habitual Residents

By virtue of Law No 4714/2020 a new alternative tax regime for foreign pensioners is introduced, by the addition of a new article 5B in the Greek Income tax code (Law 4172/2013- ITC) with effect as of tax year 2020 onwards. It applies to individuals, earning pension income arising from abroad, as defined in Article 12 of the Income Tax Code, who transfer their tax residence in Greece. The following circumstances must be met: a) they have not been Greek tax resident for the previous five (5) of the six (6) years before the transfer of their tax residence in...

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Law 27/1975 offices of ship management companies – dividend distribution

 (Memo on the tax obligations of a foreign shipowner company in Greece related to distribution of dividends to individuals-Greek tax residents through their foreign ship management Company which established an office under law 27/1975”) tax obligations 1.a. As regards companies established an office in Greece under law 27/1975 and engaged in ship management, the following applies: If that companies have not signed the New Memorandum on Voluntary Grant between the Greek State and the Shipping Community ratified by Law 4607/2019, the tonnage tax on vessels flying foreign flag, which are managed by foreign companies established in Greece pursuant to Article 25 of...

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Tax treatment of foreign trust and foreign foundation under Greek law (Circular 1114/2017 of the Ministry of Finance)

GENERAL According to Greek law, the Anglo-Saxon trust, which is an institution with origins in the common law, is a sui generis property management and liquidation regime, which has no legal personality and which is created either by a declaration of the owner of the property or by transferring such property, whether inter vivos or by means of a will. The settlor or trustor of the trust enters into a deed of settlement with the trustee and transfers to him assets, which he manages for the benefit of other persons, trustees or beneficiaries or to his own benefit (the trustee)...

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Documentation requirements for taxpayers under Greek law – rights of access of the tax administration

Article 13 of Law 4174/2013 (Hellenic Tax Procedures Code) states that all persons with income from business activities are obliged to keep a reliable accounting system and suitable accounting records in accordance with the accounting standards specified in Greek law in order to prepare financial statements and other information in accordance with the tax laws. The accounting system and accounting records are examined as a whole, and not individual parts thereof, in terms of their reliability and suitability. “Accounting records, electronic tax registers, tax memories and files generated by electronic tax registers” must be retained for at least: (a) a period...

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