Incentives for the realization of expenses for scientific and technological research

Α. DEDUCTION OF EXPENSES ACCORDING TO ARTICLE 31 OF THE INCOME TAX CODE The deduction of the above expenses on the gross earnings of companies is prescribed by the provision of par. 1 (ia), section one of article 31 of the Income Tax Code (Law 2238/1994). Prior to Law 4110/2013, the expenses for scientific and technological research of companies would be deducted at time they were incurred, except for expenses regarding capital goods, which are amortized in equal amounts within a three-year (3) period. The qualification criteria for the above expenses were determined by decision of the Minister of Industry, Energy and...

The tax framework for charitable gifts-donations in Greece

Introduction In the Greek tax law, as in other systems, there are special favorable provisions concerning the funding of charitable purposes systematically pursued by private or public institutions. In order to comprehend this favorable treatment, by way of introduction, it is necessary to mention the general provisions concerning gifts/ donations, when these are not destined to a charitable purpose -we need in other words to present the rule, in order to understand the exception. The taxation of inheritance and gifts/donations in Greece exists since the institution of the Greek State. Following several consecutive amendments, the main codification of this legislation was...

List of non co-operative countries according to article 51A of the Greek income tax code (updated on 20.1.2012)

1 Andorra 2 Anguilla 3 Antigua & Barbuda 4 Aruba 5 the Bahamas 6 Bahrain 7 Barbados 8 Bermuda 9 Belize 10 British Virgin Islands 11 Brunei 12 Cayman Islands 13 the Cook Islands 14 Costa Rica 15 Dominica 16 Gibraltar 17 Grenada 18 Guatemala 19 Guernsey 20 Isle of Man 21 Jersey 22 Lebanon 23 Liberia 24 Liechtenstein 25 Malaysia 26 Marshall Islands 27 Montserrat 28 Mauritius 29 Monaco 30 Nauru 31 Netherland Antilles 32 FYROM 33 Niue 34 Panama 35 Philippines 36 St. Lucia 37 St. Kitts and Nevis 38 St. Vincent and the Grenadines 39 Samoa 40 Seychelles 41 Singapore 42 Turks and Caicos 43 US Virgin Islands 44 Vanuatu 45 Uruguay 46 Hong-Kong ...

Thin capitalization rules in Greek tax law

Taxation in the transfer of shares listed in the Athens Stock Exchange

According to Law No. 2579/1998, article 9, paragraph 2, as amended by Law No. 3296/2004, article 12 and Law 3943/2011, article 16,  transfers of shares that are listed in the Athens Stock Exchange are taxed at 0.2 per cent. This tax is calculated on the value of the shares transferred as it appears on the tag issued by the intermediating brokerage firm. The tax burdens the buyer of the shares, individual or corporate entity, unions or trusts, regardless of their residence, origin or place of residence or domicile and even if they are exempt from the payment of other taxes...

The new investment incentives law 3908/2011

Greece's new Investment Incentives Law (3908/2011) responds to the diverse needs of today’s investor and, in parallel, creates a forward-looking investment environment. As Greece orients itself to the global economy, establishes outward-directed policies, and institutes a green development model, both domestic and foreign investors will find a new, open investment framework that is welcoming, attractive, and rewarding. The new Law establishes priorities and policies that mandate an investment process characterized by speed, transparency, and results. Investors will discover productive incentives, financing tools, and streamlined procedures so their business plans proceed with the least amount of bureaucracy and the greatest amount of clarity. Greece is...

Special tax on real estate property (15%)

In order to combat tax evasion through the use of offshore entities the Greek legislator, by virtue of law 3091/2002 introduced an annual tax on the value of real estate, initially @3% and recently, by virtue of law 3943/2011 @15%. The tax is imposed on the value of real estate situated in Greece and which are held by the taxpayer on the 1st of January of each year. The law provides for such a wide range of exceptions, that the payment of tax may  be seen as the exception rather than the rule. The exceptions may be classified as i) “objective” exemptions...

Tax on inheritance-gifts inter vivos

According to article 1 of Law 2961/2001 (The Code on taxation of inheritance, gifts inter vivos and lottery gains), tax is imposed to any asset acquired by inheritance, gift inter vivos and winnings in lotteries, whether acquired by an individual or a corporate entity. 1) Inheritance tax In article 3 of the Code, the legislator provides for a list of assets that are subject to inheritance tax. These are: 1) property of any kind situated in Greece which belongs to Greek citizens or foreigners. 2) moveable property situated abroad which belongs to a Greek resident or (under conditions) to a foreigner residing in Greece. Liable...