Tax Law

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Tax incentives to attract private individuals to settle in Greece

In the context of tax competition to attract taxpayers, several countries have introduced incentives to attract individuals, as they do to attract businesses. The benefits for countries that attract individuals to settle in them are multiple, as in addition to collecting the tax "consideration", individuals spend and invest in the country of residence. Examples of countries that have introduced similar incentives are England, Portugal, Italy, Cyprus and others. Greece introduced the first incentive with Law 4646/2019. Brief description of the incentives The incentives that Greece has introduced are divided into 3 categories, known as 5A, 5B, and 5C of the Income...

23 Sep 2024

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Appeals procedure against acts of the tax authority

If the taxpayer disputes any act issued against him/her by the Tax Administration, he/she must submit an appeal requesting the review of the act within the framework of an administrative procedure by the Dispute Resolution Division (DED) of the Independent Public Revenue Authority (AADE), in accordance with the following procedure: The appeal must be submitted to the tax authority that issued the act within thirty (30) days from the date of notification of the act to the taxpayer and must state the reasons and the documents on which the taxpayer bases its request. The taxpayer submits the appeal electronically through his/her...

07 Jun 2024

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Tax treatment of Belgian income received by a tax resident of Greece

A tax resident in Greece receives from a Belgian company: a) dividend (as a shareholder) b) remuneration of a member of the Board of Directors Which is their tax treatment in Greece, taking into account the provisions of the relevant Treaties for the avoidance of double taxation (hereinafter “DTT”): a) With regard to the tax treatment of dividend income received by an individual, who is resident in Greece, from a legal entity established in Belgium, the following applies: According to article 10 (1) and (2) of the DTT between Greece and Belgium (Law 3407/2005), dividends paid by a Belgian company to a Greek...

29 Apr 2024

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Tax treatment of dividend distributed by a foreign company to a Greek tax resident

(Independent Authority for Public Revenue (IARP) circular No 2018 of 28.1.2019) It follows from the combination of the provisions of the DTTs regarding the tax treatment of dividends, that the State of tax residency of the shareholder may tax the dividends arising in the other State, but must credit its own tax on such dividends, to the tax paid in the State in which the dividends arise, at the rate specified in the relevant provisions of the relevant DTT. However, some Double Tax Treaties include the article on elimination of double taxation provisions on the credit and on the corporate tax attributable...

05 Mar 2024

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The “non-dom” tax regime: Alternative taxation of foreign-source income of individuals transferring their tax residence to Greece – Article 5A of the Greek Income Tax Code

Conditions for inclusion in the regime The provisions of article 5A of Law 4172/2013-Greek Income Tax Code (ITC) provide for an alternative tax regime, commonly known as the “non-dom regime”, according to which a taxpayer individual 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 out of the previous 8 years prior to transfer of his or her tax residence to Greece, which...

04 Mar 2024

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Taxation of dividends and bonuses from shipbroking and related companies

Following the amendments introduced with Law 5036/2023 regarding the taxation of dividends from shipbroking companies and related businesses as well as of the bonuses paid to the directors and personnel of these companies and of ship-management companies in Greece, the Greek Independent Authority for Public Revenue (IAPR) has issued Decision A. 1175/2023 which amends the former Decision A. 1223/2019 for the content of the relevant tax return for such income. In a nutshell: Dividends Dividends paid or credited, in accordance with the provisions of article 43 par. 5 of law, to an individual-Greek tax resident by: foreign companies of any type which have...

28 Feb 2024

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Place of taxation for VAT purposes of services related to events

General rule for B2B services According to the provisions of Article 14 par. 2 a) of the VAT Code (Law 2859/2000), as in force from 01.01.2010, the supply of services to taxable persons acting as such is taxed, as a general rule, at the place of establishment of the recipient of the services (general B2B rule). Admission to cultural, artistic, sporting, scientific, educational, entertainment and similar events granted to taxable persons. According to the provisions of Article 14 par. 8 of the VAT Code, as in force from 1.1.2011, admission to cultural, artistic, sporting, scientific, educational, entertainment and similar events which is...

13 Feb 2024

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Appointment of Fiscal Representative for VAT purposes in Greece

Additional obligations for customs related obligations Acquisition of a Greek VAT number through the appointment of a Fiscal representative The concept/requirement of a Fiscal Representative for VAT purposes The appointment of a Fiscal Representative for VAT purposes is provided by the Greek VAT legislation (Law 2859/2000-Greek VAT Code) and is actually a requirement (obligation) for cases where a company that is not established in Greece carries out activities in Greece that create VAT liabilities in Greece and for which the company must obtain a Greek VAT number in order to fulfil its compliance/reporting VAT obligations and pay the Greek VAT to the State. Among...

30 Jan 2024

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Issuance of Greek tax number (AFM)