Special topics

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Foreign real estate company in Greece – examination of the obligation to establish a Greek branch

Regarding the examination of any obligation of a foreign real estate company to establish a branch in Greece , the issue is not sufficiently regulated by the existing provisions, as there are legislative gaps regarding various parameters. From 1/1/2015, foreign real estate companies that do not obtain income from business activity in Greece and which build a property owned in Greece or make additions or extensions to such property, have no obligation to keep accounting books and records. However, in case the foreign legal entities acquire income from real estate in Greece, and since from 1/1/2014 said income is considered for income...

20 Apr 2023

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The right to EU citizens and their family members for residence and movement in Greece

in Immigration Law, Special topics

The right to EU citizens and their family members (irrespective of their nationality) to enter, reside and move in the Greek territory is recognized by the Greek Presidential Decree no. 106/2007 which integrates the Directive 2004/38/EC into the Greek legislative framework, and more specifically in article 3, as in force: Article - 3 Beneficiaries (Article 3 of Directive 2004/38/EC) This Presidential Decree shall apply to citizens of the Union who enter or reside in Greece and do not have Greek nationality and to members of their families, irrespective of nationality, as defined in paragraph 2 of Article 2, who accompany...

19 Apr 2023

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VAT on sales of newly built properties under a sale & lease-back contract with a financial leasing company

In accordance with Article 6 paras. 1, 3 and 4 of Law 2859/2000 ("VAT Code"), , the transfer of completed or unfinished buildings or parts thereof and the land transferred with them as a single property or ideal shares of land to which the presumption of completion applies, is subject to VAT, if it is carried out for a consideration, before the first installation in them. Buildings shall be deemed to be buildings in general and structures of any kind attached to the buildings or to the ground in a fixed and permanent manner. The first installation is defined as the...

19 Apr 2023

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Subjection of financial leasing of real estate to VAT following a tax election request

According to Article 22 par. 1 case (kst’) of Law 2859/2000 (VAT Code), real estate leases are exempt from VAT, except for those under case (d') of paragraph 2 of Article 8, which include i) the lease of industrial premises and safe deposit boxes and ii) the lease of premises for the exercise of a business activity (commercial leases) under certain conditions. In particular, Article 8 par. 2 case (d) subcase (ii) of the VAT Code provides that the lease of premises for the exercise of a business activity to a taxable lessee, either independently or under a mixed contract, is...

23 Feb 2023

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Exemption from tax on donations of movable assets located abroad for Greek nationals who reside abroad

Already as of 31/7/2020, a provision had been added by article 6 of Law 4714/2020 to Section C of article 43 of the Code of Inheritance, Donations and Parental Gifts Tax (Law 2961 /2001, hereinafter referred to as the "Code"), as case g', which provided for the exemption from tax "for gifts of movable assets located abroad and not acquired in Greece during the last twelve (12) years by a Greek citizen who has been resident abroad for at least ten (10) consecutive years and, in the case of relocation to Greece, no more than five (5) years have elapsed." Article...

10 Feb 2023

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Real estate company ownership in Greece : individual ownership VS company – a comparative table

in Real Estate, Special topics

Legal entity Advantages Disadvantages 1. Income from property is taxed as profit from business activity at the flat tax rate of 22%. Apart from the flat tax rate for the income from property, the further distribution of dividends by the company to the shareholders is taxed as well at the tax rate of 5%. However, in case there are also other sources of income except from the property income, there may be a flexibility in arranging when to receive the dividends and pay the dividend tax. 2. Α legal entity which acquires real estate income in Greece has the right to deduct the total of its business...

07 Feb 2023

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Online Inheritance Tax Return – Procedure Supporting Documents

Procedure The deadline for the submission of the inheritance tax return by the heirs before the Tax Authority in the absence of a will is nine (9) months from the date of death of the deceased, while in the case of a will, it is nine (9) months from the publication of the will. It is noted that an extension of the above 9-month deadline is no longer granted by the Tax Authority. The competent tax office for the acceptance of the declaration and the imposition of tax is the competent tax office of the deceased's residence. If the death occurred from 01/01/2022...

03 Feb 2023

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Commencement of business activity as a sole-trader in Greece: procedure and required documentation

Registration with the competent Tax Office In order to obtain a Tax Identification Number (TIN), an application shall be submitted at the competent Tax office. The supporting documents are the following: Passport/ Greek Identity Card Form D210 Certified copy of the lease of the main residence Solemn Declaration by the lessor or the lessee regarding the validity of the lease contract of the main residence. After the submission of the application, the tax office issues a TIN certificate and keycodes for the creation of a TAXISNET account. TAXISNET is an online platform, from where the taxpayer can generally manage most of his...

16 Jan 2023

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Changes to the Greek golden visa scheme