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Iason Skouzos - TaxLaw > Practice Areas  > Tax Law (Page 4)

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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Rules for Controlled Foreign Companies (CFCs)

The provisions of Article 66 of the Greek Income Tax Code (ITC) were amended as of 01.01.2019 by virtue of the provisions of Article 12 of Law 4607/2019 for the purpose of harmonization with Council Directive 2016/1164/EU (ATAD) and implementation of the BEPS results (final report - action 3), in order for Member States to limit the artificial diversion of income to companies and permanent establishments established in low-tax countries within and outside the European Union. In particular, the new provisions for "Controlled Foreign Companies", which relate to the inclusion in the taxable income of non-distributed income of a legal person...

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Joint bank accounts – Inheritance and gift tax issues

Based on the recent law 4916/2022, article 25 par. 2 case (c) of the Greek Inheritance, Gifts and Parental Gifts Taxation Code – L. 2961/2001 (hereinafter referred to as “the Code”) was amended and extends the exemption from Greek inheritance taxation for deposits maintained in joint bank accounts including cash deposits and all kinds of securities that are held not only in bank accounts held in Greece but also abroad, with the exclusion of non-cooperative jurisdictions. It is noted that, in order for the exemption to apply, the contract with the foreign bank should include a clause providing that after the...

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Non-dom regime (article 5A of the Greek ITC) – Reporting obligations regarding the income and the investment

1. Reporting obligations/tax declarations in Greece regarding a) the foreign income and b) any Greek income    A. Foreign income Based on the provisions of the non-dom regime of article 5A of the Greek ITC, the taxpayer who has been included in the non-dom regime of article 5A of the Greek ITC, does not have any reporting obligations in Greece regarding their foreign income. Moreover, there is no tax declaration obligation in relation to the lump sum tax amount of the 100.000 Euros. Instead, the competent Tax Office for Residents Abroad and for Alternative Taxation of Domestic Residents will issue a Tax Assessment...

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Greek tax issues related to the granting of a loan by a foreign company to its Greek tax-resident (individual) shareholder

Stamp duty issues On the basis of the territoriality principle, a loan concluded and executed abroad is exempt from Greek stamp duty, provided the following conditions are met: a) the loan agreement is concluded and signed by both parties abroad (not before a Greek Consulate Authority) e.g. before a notary public or attorney at law; b) the loan agreement must not create any executable obligations in Greece e.g. it should not be secured through mortgage or property located in Greece; c) any obligation to grant the loan and repay capital and interest must be executed abroad; this practically means that...

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The principle of retroactive application of the lighter administrative sanction for breach of tax legislation under Greek law

(Legal Council of the state 2319/2021) The principle of retroactive application of the lighter administrative sanction (and more generally, the most favorable legal provision imposing administrative-sanctions) for violation of the tax legislation, constitutes a general principle of Greek tax law founded in the constitutional provisions of equality (art.4 par.1) and -in terms of pecuniary sanction- of the principle of proportionality in the restrictions of the right to property (art.25 par.1 q. d’). These constitutional principles bind the legislator when it comes to the regulation, by means of provisions of transitional law, of cases pending before the Administration or before administrative courts...

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Tax treatment of benefits in kind

Granting of free shares (“Shares award plans”) [article 42A par. 3 of L.4172/2013, hereinafter as “ITC”] First, it should be noted that, according to article 14 par.1 of ITC, the benefit in kind in the form of granting of free shares that is obtained by an individual from a legal person/entity in the context of plans in which the achievement of specific objectives or the occurrence of a specific event is set as a condition for this granting, is exempted from the calculation of income from employment. Therefore, at the time of granting, the individual does not obtain income...

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Tax treatment of dividend in kind

The Greek Income Tax Code (ITC) does not explicitly refer to the case of distribution of dividends in kind or its taxation. The definition of “dividends”, as per article 36 of the Greek ITC includes any income deriving from shares, securities or other types of rights in the participation of profits that do not constitute claims from debts, as well as any income from other corporate rights such as parts, including pre-dividends and numerical reserves, participations in profits of personal companies, distributions of profits from any type of legal entity as well as any similar distributed amount. The distribution of dividends in...

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