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Tax Law

Shipping taxation: Extension of article 25 of L. 27/1975 and the tonnage tax regime also to bareboat charterers and ship lessees

Under the shipping tax provisions that were introduced by virtue of L. 4646/2019 (articles 59-61 thereof) and apply as of 1/1/2020, article 25 of L. 27/1975 was amended in order to include in its scope not only ship-owning companies but also bareboat charterers and ship lessees, on the rationale that they have essentially the same rights with the ship-owning companies in relation to the exploitation/management of the ship (apart from the right to dispose of the ship) and have been long considered as customary ways of ship exploitation. Therefore, as of 1/1/2020, offices or branches of foreign companies dealing with the...

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Tax treatment and declaration of income from property located in the UK and received by individual tax resident in Greece

The income from property located either in Greece or abroad that is received by an individual who is tax resident in Greece, is considered as capital income and is taxed separately according to the following scale under article 40 par. 4 of the Income Tax Code (hereinafter referred as “I.T.C.”):   Income from real estate property (€) Tax rate (%) 0 - 12.000 15% 12.001 - 35.000 35% 35.001 -  …… 45%   It should be noted that 5% of the gross income of foreign origin is recognized as repair, maintenance, renovation or other fixed and operating costs of real estate that generates taxable income, regardless of its type and use,...

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Decision A.1043/2022 setting out the scope and services provided by “family offices” in Greece

Legal form Decision Α. 1043/2022 issued by the Secretary of Finance and the Director of Independent Authority of Public Revenue sets out the scope and the services provided by family offices which are established in Greece based on Article 71H of the Greek Income Tax Code for the management of the family wealth and assets of HNWI residing in Greece. Family offices can be established under any legal form, except that of a non-profit nature, either in Greece or abroad. The Family office which is established in Greece as a capital company or private company or branch of a foreign family office...

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New tax regime for the establishment and operation of family offices in Greece

Among the latest structural reforms that have been implemented with the aim to attract foreign investments and relocate skillful human resources in Greece, the Greek Government has recently introduced a “Family Office” regime for serving the management of the family wealth and assets of high-net-worth individuals who are tax residents in Greece. In this respect, new Law 4778/2021 sets a transparent and straightforward legal framework that provides incentives for the establishment and operation of family offices in Greece, as follows: ...

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“Refund procedure of the excess withheld tax for employees who transfer their tax residence in Greece (5C tax regime)”

The individuals who transfer their tax residence to Greece and acquire income from employment or business activity arising in Greece may be subject to the special tax regime of article 5C of the Income Tax Code (hereinafter "ITC"), under which an exemption from income tax and the solidarity contribution of Article 43A of the ITC is provided for fifty per cent (50%) of their income from employment and business activity earned in Greece during the tax year. Specifically, for individuals-taxpayers who earn income from employment and have been subject to the special tax regime of 5C of ITC, they are required...

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The procedure for transfer of tax residence abroad under Greek law

The procedure and the supporting documents required for the transfer of the tax residence abroad are provided by Circular POL. 1201/2017 (Government Gazette Β΄4441/2017) of the Greek Independent Authority of Public Revenues (IAPR). On a general note, individuals must apply by the last working day of the first 10 days of March and submit the required documents by the last working day of the first 10 days of September of the year following their departure from the country. However, applications and supporting documentation submitted up to the 31st of December of the year following the tax year of departure from the...

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Exit taxation rules

Τhe provisions of Article 66A of the Greek Income Tax Code have introduced exit taxation rules in Greece, transposing into the Greek legislation the relevant provisions of the EU Council Directive 2016/1164/EU (ATAD). Decision A. 1231/2020 of the Governor of the Independent Authority for Public Revenue provides details for the implementation of the relevant provisions.   Purpose of exit taxation rules Exit taxation rules apply to transfers of assets, tax residence or business of a legal person outside Greece which result in the loss of the State’s right to tax and aim to ensure that the economic value of any capital gain...

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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: 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 Greece,...

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Extract from Circular POL 1026/2014

1. Any taxpayer who is tax resident in Greece and, within any tax year, incurs foreign-sourced income for which he has been taxed abroad, is required to submit the following documentation to the tax authorities together with the submission of his income tax return, in order to benefit from the foreign tax credit provided by article 9 par. 1 of L. 4172/2013 (the Greek Income Tax Code): − For countries with which there is a Double Tax Treaty in place, a certificate from the competent foreign tax authority evidencing the tax paid abroad. − For other countries, with which there is no...

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Declaration of UK real estate income by Greek tax residents

The income from property located abroad is taxed in Greece according to the following tax scale: Income from property (€) Tax rate (%) 0 - 12.000 15% 12.001 - 35.000 35% 35.001 -   ….. 45% It should be noted that expenses up to 5% of the gross income of foreign origin may be accepted for deduction for repair, maintenance, renovation or other fixed and operating costs of real estate that generates taxable income, regardless of its type and use, excluding income from leasing, free concession, owner-occupation of land and premises for the installation of signs. Αs regards the income from property located in UK, the Double Taxation Agreement between Greece...

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