Tax Law

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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)...

01 Jun 2020

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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...

04 Mar 2020

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Alternative taxation method pursuant to Article 5A of Law 4172/2013, as added by Law No 4646/2019 (Greek Government Gazette No A’ 201/12.12.2019)

Pursuant to the recent legal framework [Article 5A of Law 4172/2013], an individual who transfers his/her tax residence in Greece may be subject to an alternative income tax regime. The requirements which must be met are the following: a) The individual concerned has not been a tax resident in Greece for the previous seven (7) of the last eight (8) years; Cases: • Whether the individual appears in the records of the Tax Administration as a foreign tax resident for the previous seven (7) of the last eight (8) years, no supporting documentation is required. • Whether information proving the individual's tax residence during the...

21 Nov 2019

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Upcoming tax developments in Greece

VAT Suspension of the imposition of VAT on construction activity for the following three (3) years. Reduction of VAT rates from 13% to 11% and from 24% to 22% within the following four (4) years, especially for baby essentials. Gradual imposing of e-business invoicing (B2B) and e- accounting books. Real estate tax Reduction of the Unified Real Estate Property Tax (hereafter EN.F.I.A.) rates within the next two (2) years. Suspension of the imposition of goodwill tax on the transfer of property for the next three (3) years. Tax deductions for the expenses related to energy functional and upgrading of...

21 Nov 2019

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Recent developments in Greek taxation and corporate compliance issues

1. Greece has adopted the EU anti- tax avoidance Directive (ATAD) through a new law, which is in force from 1.1.2019 onwards. The rules transposed in domestic law amended the following provisions: 1.a. The Greek thin capitalization rules (article 49 Greek Income tax code) were reformulated in order to fully comply with the Directive. However, no significant changes were made in relation to the previous provisions system, which complied with the Directive to a great extent. Specifically, excess borrowing costs are deducted in the tax year in which they are occurred only up to 30% of the company’s earnings before taxes,...

05 Jul 2019

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Requirements – Procedure – Timeframe for the Acquisition of shares of a Greek Private Company by a non-Greek Company

Requirements – Procedure – Timeframe for the Acquisition of shares of a Greek Private Company by a non-Greek Company...

02 May 2019

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Exemption from real estate transfer tax

The real estate transfer tax rate applicable is 3% on the taxable value of the property. Real estate transfer tax exemption is provided only on the purchase of a “primary main residence”. Conditions required for the property transfer tax exemption....

23 Apr 2019

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The procedural aspects (step-by-step) of the filling of the tax return related to the gain from the transfer of shares

Tax residents in Greece should submit electronically, via their personal account on the official website of the Ministry of Finance (hereinafter “taxisnet”), a tax return in which they should declare their worldwide income, as well as the tax deducted abroad. ...

07 Jan 2019

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The distinction between tax on rental income and tax on capital profits from selling assets acquired by Greek S.A. Companies. The deductible expenses (Is ENFIA a deductible expense?)