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Tax treatment of dividend in kind

in Tax Law, Special topics

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...

04 Mar 2022

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Municipal Real Estate Tax

in Real Estate, Special topics

What is the Municipal Real Estate Tax ? The Municipal Real Estate Tax (in Greek “Telos Akinitis Periousias” or TAP) is a municipal obligation, a fixed small amount which is paid to the municipality that the real estate is located. Every real estate owner owes this amount to the Local Authority to which his/her real estate is located. However, in practice these fees are collected by the municipalities through the electricity bills, together with the Municipal Fees and the remaining Municipal Taxes. Real estate ownership is further subject to (national) real estate tax. How is the Municipal Real Estate Tax...

25 Feb 2022

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The rules of intestate succession under Greek law

Where there is an inheritance under Greek law without a will (intestate succession) there are six ranks which are used to determine who is called upon to inherit the estate first, second, third, fourth, fifth and sixth, so that they can either accept or relinquish the inheritance. Rules for intestate succession If the first rank is called, the ranks below will be disqualified. In other words, if the heirs of the first class are called upon to inherit, the heirs in second, third, fourth, and other ranks are excluded. If the heirs of one rank decline or forfeit their inheritance in any manner,...

25 Feb 2022

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The operation of trust under Greek law

Since Article 1923(1) of the Hellenic Civil Code states that the testator may oblige the heir to surrender the inheritance acquired or a percentage thereof to another (the beneficiary under trust) after a specific event or a specific point in time. As is clear from this provision, in addition to making a person his direct heir who immediately acquires the inheritance after his death, the testator can also designate an indirect general successor, the beneficiary under trust, who is heir subject to a deadline/condition precedent, which is met after the death of the testator, which corresponds to a deadline/condition subsequent...

24 Feb 2022

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The legal treatment of joint bank accounts for inheritance law purposes under Greek law

The joint bank account is an account with several joint beneficiaries who retain some degree of autonomy so that each of them can withdraw and deposit monies themselves, without the consent of the other joint beneficiary. Under Articles 2 and 3 of Law 5638/1932, Law 2961/2001, Law 117 of the Law introducing the Hellenic Civil Code and Article 488 of the Hellenic Civil Code, when one of the joint beneficiaries of the joint bank account passes away, the amount remaining is not inherited by the heirs of the deceased but goes to the joint beneficiary of the joint account, without any...

24 Feb 2022

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Legal guardianship under Greek civil law

Legal guardianship is regulated by Articles 1666 to 1694 of the Hellenic Civil Code and is defined as responsible handling of issues of legal importance for an adult who has such manner of disease (mental or intellectual disorder or physical disability) that de facto he is unable to handle his own affairs. It must be ordered by a court (and therefore no person can be placed in legal guardianship on the basis of the private will/intention of another) which alone can determine its form and extent. The Single-Member Court of First Instance at the assisted person’s normal place of residence...

24 Feb 2022

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Rules governing the appointment of an executor of a will under Greek inheritance law

Article 2017 of the Hellenic Civil Code states that an executor for the will is only to be appointed by the testator and only if there is a will. Appointment is made exclusively by the testator of the estate and cannot be dependent on the opinion of a third party (such as an heir). The appointment of the executor of the will cannot be done by means of an inter vivos deed entered into by the testator but only by the will and consequently in that regard it follows the terms and conditions under which a will is valid. Article 2018...

24 Feb 2022

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Conditions for the validity under Greek inheritance law of a will made abroad

In the case of a will which was prepared in a country other than Greece, what needs to be clarified is the applicable law under which the validity of the will is ascertained. According to Article 11 of the Hellenic Civil Code, a legal transaction is formally valid in procedural terms if it is in accordance with either the law governing its content or the law of the place where it is entered into or the national law of all the parties. An example of such a transaction is a will. Under the provisions of Article 28 of the Hellenic Civil...

24 Feb 2022

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Rules governing the publication of wills under Greek inheritance law