Special topics

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Requirements and procedure for the establishment of an office/branch in Greece under article 25 of Law 27/1975

Foreign shipping companies interested in establishing an office or branch in Greece under the provisions of Article 25 of Law 27/1975, are required to submit the following documentation to the Directorate of Maritime Policy and Development of the Ministry of Maritime Affairs: a. An application including the name, type, registered office and nationality of the foreign management company as well as its activity and the specific activities of its office in Greece as well as its representative. The above application will also state that: The company undertakes the obligation to import into Greece an annual foreign exchange, not compulsorily assignable, or...

03 Jul 2023

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Overview of the shipping tax regime in Greece

Tonnage Tax Regime The Greek tonnage tax regime has been established as a favorable system of taxation of shipping activities. This tax system enables ship owners to plan their business activity in the long term without increased tax burdens, while it also contributes to keeping the cost of operating ships at a competitive level. In general terms, according to the tax provisions of Law 27/1975, the tonnage tax is payable by shipowners or ship-owning companies of ships under Greek flag and exhausts the tax liability of the shipowner, as well as their ultimate shareholders, up to the level of the private...

20 Jun 2023

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Greek residence permit for investors-Eligible investments and monetary thresholds of investments according to Immigration Code

in Immigration Law, Special topics

The current legal framework for granting residence permit to third country citizens for investment activities is provided in article 16 of Law 4251/2014, according to which the limits of investment activities are as follows: Α.INVESTMENT ACTIVITIES, WHICH GRANT RESIDENCE PERMIT FOR INVESTMENT ACTIVITY ARTICLE 16 OF LAW 4251/2014: According to paragraph 1 of Article 16 "The entry and residence of third country nationals in Greece, as investors, is permitted in order to make an investment that will have a positive impact on the national development and economy", under the specific terms and conditions set out in this provision. In the residence permit...

20 Jun 2023

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Golden Visa – Guide for residence permit to owners of property

in Immigration Law, Special topics

Citizenship by investment in real estate in Greece Foreign citizens who invest in real estate property in Greece can be granted a five-year residence permit for themselves and their family members. This is a permanent residence permit which can be renewed every five years, provided that the investor retains ownership of the property. According to the new legislative framework on monetary thresholds, for the purchase of property, for areas of the Northern, Central and Southern sector of Athens and the municipality of Vari – Voula - Vouliagmeni of the Region of Attica, the Municipality of Thessaloniki and for islands of Mykonos and...

30 May 2023

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The duration and termination of a lease contract

in Real Estate, Special topics

Renting a house may be the most common way of satisfying one’s residence needs, however there are some details lurking in the contract or in the law that both the lessor and the lessee should watch out to avoid any unpleasant disputes. For this reason, some basic principles are set out below, specified on the termination of the lease. The most likely scenario is that the tenants use the leased premises as their main residence. In this case, the provisions of Greek Law 1703/1987 are applied, in conjunction with the articles of the Greek Civil Code. More specifically, the parties are...

19 May 2023

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Working remotely from Greece – Risk of a permanent establishment for the foreign employer

In the post-COVID 19 era, where the global mobility of employees and the cross-border remote working have increased dramatically, there are a number of tax issues that arise for both the foreign employer and the remote worker. One of the associated tax issues relates to the risk of a permanent establishment for income tax purposes being created for the foreign employer in the country from where the employee is working remotely from a home office. Α.Legislative Framework The assessment of whether a PE of a foreign employer company may be created in Greece is made on the basis of the applicable provisions...

15 May 2023

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Charter of vessels and VAT implications

VAT on Bareboat Charter Based on the Greek VAT legislation, the bareboat charter of a vessel, where the owner is alienated from the vessel, is a service that qualifies as a “lease of means of transport”, whereas the crewed, time charter of a vessel is a service that qualifies as a “transportation service” of either goods or persons depending on the case. Based on article 14 of the Greek VAT Code: - The place of supply of the short-term lease of a means of transport (i.e. less than 90 days for vessels) is Greece, if the vessel is put at the...

27 Apr 2023

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Greek income tax implications of a sale of a commercial pleasure yacht owned by a Greek NEPA

The legislative framework for NEPAs was up to recently regulated by L. 3182/2003, which was replaced by new Law 4926/2022, effective as of 20.4.2022. In specific, Part A of the new Law replaces the previously applicable regulatory framework on pleasure boats which was regulated by L. 4256/2014, while Part B includes, among others, the legislative framework for NEPAs. Law 4926/2022 According to article 65 par. 1 of L. 4926/2022, it is explicitly provided that articles 1 and 2 of Law 27/1975 also apply to a NEPA, provided it is a shipowner, as well as to its shareholders. Effectively, this provision extends...

27 Apr 2023

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VAT treatment of commercial pleasure vessels that cease their activity and are intra-community supplied or exported