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Tax guide for Greece

The fundamental rules of taxation in Greek law The fundamental rules of taxation in Greek law are contained A) in article 4 §§ 1 & 5 of the Greek Constitution which read as follows: 4§1 “Greeks are equal as against the Law”; 4 §5 “Greek citizens contribute without discrimination to public fees depending on their powers” B) in article 78 §§ 1 & 2 of the Greek Constitution: 1) No tax is imposed or collected without a formal law that sets the object of taxation, the income, the nature of property, the expenses or the transactions to which the tax relates...

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Taxation of individuals

Τhe main taxes imposed on individuals The main types of taxation on individuals are income and capital taxes. Of course, there are also many other forms of indirect taxes, mainly on transactions and consumption. Income taxation is the most important tax that affects individuals. The two main categories of capital tax are tax on inheritance/gifts inter vivos/lottery gains and tax on the transfer of real property. In the present chapter we deal only with 1) income tax 2) tax on inheritance/gifts inter vivos/lottery gains; A. Income tax on individuals   1) Who is subject to income tax in Greece? Subject to income tax in Greece...

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Acquisition & Occupation Of Real Estate: Basic Legal Framework, Property Rights, Procedural Issues Of Acquisition, Restrictions

The basic legal framework governing real rights in immovable property The right to property, as a fundamental right, is under the protection of the State, as provided in the Greek Constitution, Article 17, whereas it is stipulated that property rights cannot be exercised against the public interest. Within this context, the Constitution imposes a restriction or deprivation of property (expropriation) for the sake of public interest, always under the prerequisite of a prior compensation of the owner. Furthermore, the most significant source of property law lies in the third book of the Civil Code (articles 947-1345). Other provisions and property law rules exist...

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Greek CFCs rules

The New Income Tax Code (Law 4172/2013 hereinafter “ITC”) introduced in Greek Tax legislation provisions pertinent to Controlled Foreign Corporation Rules (“CFCs rules”). Controlled Foreign Corporation are legal persons or legal entities which are tax residents in different countries with such links between them, leading to effective control of one company (“Foreign Company”) over the other (“Controlled Company”). The CFC rules are features of an income tax system designed to limit artificial deferral of tax by using offshore low taxed entities. Pursuant to Article 66 ITC, taxable income shall include the non-distributed income of a legal person or legal entity (which...

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Supporting documents for real estate purchase agreements (2015)

1. Real property acquisition title. 2. Copy of construction permit for the real property, validated by the relevant town planning authority, where the permit has been issued after 17 March 1983. 3. Engineer certificate under Law 4178/2013 “on addressing illegal construction”. Where the real property is located in land not zoned, the certificate should also be accompanied by a surveyor’s plan dependent on the Hellenic Geodetic Reference System 1987 (HGRS87), unless it falls under the exceptions provided for in Article 2 of Law 4178/2013 (for example, real property on a beach zone, forest land, historical site, etc.). 4. Surveyor’s plan for the real...

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Tax treatment of the tax paid abroadfor the tax years before the 1st of January 2014

Pursuant to Article 109 par. 4 and 5 of the previously in force Income Tax Code (Law.2238/1994 - hereinafter "ITC"), the tax paid in advance, the withholding tax and the tax which “demonstrably” paid abroad regarding the income obtained abroad, are considered to be deductable from the total due income tax amount (including the additional tax) in Greece. In no case, the tax paid abroad can be higher than the tax amount which is attributable to such income in Greece. To prove the amount of tax paid abroad, a certification of the state's competent Tax Authority in accordance with Double...

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Due diligence for the acquisition of a Greek company

The due diligence checklist below is a general (non-restrictive) list of issues that ought to be explored as part of the due diligence process. Certain points may need to be added depending on the area of business activity. Issues relevant exclusively to financial auditing have been omitted. Financials – Tax Obligations • Cash restrictions. Is cash restricted from use in any way? For example, the local bank may have issued a performance bond on behalf of the company, and has restricted a corresponding amount of the company’s cash. • Audit of compliance with tax obligations for all types of tax up to...

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Granting of residence permit to owners of property in Greece

Pursuant to the applicable legislation, a five-year residence permit may be granted to third country nationals who own property with minimum value of €250,000. Such a permit may be renewed and these persons may be accompanied by members of their family. The same applies to third country nationals having entered into timeshare for ten years minimum under Law 1652/1986 or a ten-year lease of hotel accommodation or furnished tourist residences in tourist accommodation complexes referred to in Article 8(2) of Law  4002/2011, the lease charges for which amount to €250,000 minimum. Please note that third country nationals shall be any person who...

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Issuance of residence permit to financially independent persons

Under Article 20 Α of Law 4251/2014 and by decision of the General Secretary of the Region, a two-year residence permit is granted to a third-country national provided that the third-country national has obtained a special visa and is in possession of sufficient resources corresponding to a stable annual income to cover the living expenses, which may be renewed every three year subject to the fulfillment of the other requirements provided for in the applicable law. The amount of the sufficient resources is laid down in a Joint Ministerial Decision pursuant to para. 7 of Article 136 of the aforementioned...

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