Special topics

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Calculation of the dismissal compensation

According to the explicit provision of the Law (article 5 L.3198 / 1955), the calculation of the dismissal compensation is done based on the regular salary of the employee during the last month with full-time status. “Regular salary” is defined as remuneration (legal or contractual) paid regularly and uninterruptedly to employees in exchange for the work they provide. Thus, regular salary includes not only the main salary, but also any other benefit, either in cash or in kind, which is given in addition to the salary during the employment contract, such as e.g. overtime, family allowances, food, housing, etc. However, in...

26 Nov 2020

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Issues related to annual regular leave to employees

The time for granting the leave Under the current provisions, the employer is obliged to grant the leave to the employee, even if he/she does not accept it, by the 31st of December of each year. The document number 50239/77 issued by the Ministry of Labor, had accepted that the leave could be extended for a few days in the next year, in case the days are not sufficient until the 31st of December for the exhaustion of the leave, if the employee who will receive the leave has either returned from illness or from maternity leave in the last month (and...

26 Nov 2020

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Part-time work (legislative framework – provisions analysis)

Part-time work is a form of flexible work, which was introduced for the first time by Greek Law 1892/1990 as a means of combating unemployment. It is based on the standard “dependent work” model but with a derogation from one parameter (working time). Since then, this specific form of work has been retained in effect and regulated by various legislative provisions (Law 2639/1998, Law 2847/2000, Law 2956/2001, Law 3174/2003, Law 3250/2004). The last amendment (effected by Article 59 of Law 4635/2019) regulated the concept of part-time work on a new basis, codified existing provisions and introduced new measures to protect employees. I. Definitions “Part-time...

19 Nov 2020

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Required documents for the Greek tax registration number (A.F.M.) issuance

The required documents to apply an individual for a Greek tax registration number (A.F.M.) in Greece are the following: 1. Form M1 "Application for tax number/ Change of Personal Data", including the following information: • personal information, ie surname, father name, date of birth, place of birth; • identity information, ie number of passport, date and authority of issuance; • nationality, profession and marital status; 2. Current residence address in Greece; it is not required any document proving your address in Greece (ie lease contract etc). The residence determines the local competence of tax office. 3. A transcript of your passport or your identity card. The above...

13 Nov 2020

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Alternative taxation of income of natural persons who are beneficiaries of pension income from abroad

Alternative taxation of income of individuals who are beneficiaries of pension income from abroad and who transfer their tax residence to Greece - Procedure and conditions for inclusion [Article 5B of Law 4172/2013]. An individual recipient of pension income who transfers his or her tax residence to Greece can be taxed in an alternative manner for income that is generated abroad. Under the alternative method of taxation, each tax year the individual pays a tax at a rate of 7% for all income acquired abroad, unless that income is exempt from tax in the country of residence under the provisions of...

26 Oct 2020

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Compensation for off site Work

Τhe compensation of employees for off-site work is regulated by the Joint Ministerial Decision of the Ministers of Finance and Labor no. 21091/1946 (Government Gazette / Β’/ 142/1946) as in force. According to this JMD), employee is entitled to the following: a) His/her earnings in full as if he/she was normally employed at the headquarters of the company. b) Daily allowance/compensation for off-site work, which is independent of the employee’s working hours and is related only to the number of the overnight stays, equal to 1/25 of the legal salary. When employees working off-site are provided with food and housing by the employer at...

28 Jul 2020

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Law 27/1975 offices of ship management companies – dividend distribution

(Memo on the tax obligations of a foreign shipowner company in Greece related to distribution of dividends to individuals-Greek tax residents through their foreign ship management Company which established an office under law 27/1975”) tax obligations 1.a. As regards companies established an office in Greece under law 27/1975 and engaged in ship management, the following applies: If that companies have not signed the New Memorandum on Voluntary Grant between the Greek State and the Shipping Community ratified by Law 4607/2019, the tonnage tax on vessels flying foreign flag, which are managed by foreign companies established in Greece pursuant to Article 25 of...

07 Jul 2020

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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)...

15 Jun 2020

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Establishment of a foreign shipping company’s office in Greece (L. 27/1975)