Special topics

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Calculation of the dismissal compensation

Posted by Έλενα Μπατάλα

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

Posted by Έλενα Μπατάλα

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)

Posted by Έλενα Μπατάλα

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

Posted by Έλενα Μπατάλα

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...

17 Nov 2020

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Alternative taxation of income generated abroad for individuals who transfer their tax residence to Greece [Article 5A of Law 4172/2013]

Posted by Έλενα Μπατάλα

A taxpayer (who is a natural person) who transfers his or her tax residence to Greece can be taxed in an alternative manner for income generated abroad, in other words all income not generated in Greece, provided all the following conditions are met: a) he or she was not tax resident in Greece during 7 of the previous 8 years prior to transfer of his or her tax residency to Greece, which is examined based on the records held by the tax administration and b) he or she proves that he/she or his/her relative (spouse and persons in the ascending or descending...

13 Nov 2020

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

Posted by Έλενα Μπατάλα

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

Posted by Έλενα Μπατάλα

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...

14 Sep 2020

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New Tax on Pension Income of Non-Habitual Residents

Posted by Έλενα Μπατάλα

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: a) 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...

28 Jul 2020

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

Posted by Έλενα Μπατάλα