Special topics

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The procedure for transfer of tax residence abroad under Greek law

The procedure and the supporting documents required for the transfer of the tax residence abroad are provided by Circular POL. 1201/2017 (Government Gazette Β΄4441/2017) of the Greek Independent Authority of Public Revenues (IAPR). On a general note, individuals must apply by the last working day of the first 10 days of March and submit the required documents by the last working day of the first 10 days of September of the year following their departure from the country. However, applications and supporting documentation submitted up to the 31st of December of the year following the tax year of departure from the...

10 Oct 2022

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Exit taxation rules

Τhe provisions of Article 66A of the Greek Income Tax Code have introduced exit taxation rules in Greece, transposing into the Greek legislation the relevant provisions of the EU Council Directive 2016/1164/EU (ATAD). Decision A. 1231/2020 of the Governor of the Independent Authority for Public Revenue provides details for the implementation of the relevant provisions. Purpose of exit taxation rules Exit taxation rules apply to transfers of assets, tax residence or business of a legal person outside Greece which result in the loss of the State’s right to tax and aim to ensure that the economic value of any capital gain...

05 Oct 2022

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New Tax on Pension Income of Non-Habitual Residents

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: 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 Greece,...

20 Sep 2022

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Greek golden visa for investors (residence permit for 5 years) – Eligible investments and monetary thresholds.

in Immigration Law, Special topics

Investments of €400.000 and above (Article 16 of Law 4251/2014) a capital contribution of at least €400,000 to a company having its registered office or establishment in Greece, with the exception of Portfolio Investment Companies and, without prejudice to sub-paragraph b', Real Estate Investment Companies, for the acquisition of shares in a share capital increase or bonds in the issuance of a bond loan, which are admitted to trading on regulated markets or multilateral trading facilities operating in Greece a capital contribution of at least four hundred thousand (400,000) euros to a Real Estate Investment Company Limited by Shares (REICT),...

19 Sep 2022

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Extract from Circular POL 1026/2014

1. Any taxpayer who is tax resident in Greece and, within any tax year, incurs foreign-sourced income for which he has been taxed abroad, is required to submit the following documentation to the tax authorities together with the submission of his income tax return, in order to benefit from the foreign tax credit provided by article 9 par. 1 of L. 4172/2013 (the Greek Income Tax Code): − For countries with which there is a Double Tax Treaty in place, a certificate from the competent foreign tax authority evidencing the tax paid abroad. − For other countries, with which there is no...

19 Sep 2022

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Basic legal framework for employment in Greece

in Labor & Employment, Special topics

Working time In all sectors of work without exception and in all sectors of economic activity, full-time work shall be 40 hours a week, which may be allocated over a 5- or 6-day working week. Τhe full contractual working hours may be distributed on a five-week or six-day basis as provided for, amounting to eight (8) hours per day, whereas where a six-day working week system is applied, the full working hours shall amount to six (6) hours and forty (40) minutes per day. The possibility of adopting a four-day full-time system of forty (40) hours per week and ten (10) hours...

16 Sep 2022

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Declaration of UK real estate income by Greek tax residents

The income from property located abroad is taxed in Greece according to the following tax scale: Income from property (€) Tax rate (%) 0 - 12.000 15% 12.001 - 35.000 35% 35.001 - ….. 45% It should be noted that expenses up to 5% of the gross income of foreign origin may be accepted for deduction for repair, maintenance, renovation or other fixed and operating costs of real estate that generates taxable income, regardless of its type and use, excluding income from leasing, free concession, owner-occupation of land and premises for the installation of signs. Αs regards the income from property located in UK, the Double Taxation Agreement between Greece...

16 Sep 2022

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Rules for Controlled Foreign Companies (CFCs)

The provisions of Article 66 of the Greek Income Tax Code (ITC) were amended as of 01.01.2019 by virtue of the provisions of Article 12 of Law 4607/2019 for the purpose of harmonization with Council Directive 2016/1164/EU (ATAD) and implementation of the BEPS results (final report - action 3), in order for Member States to limit the artificial diversion of income to companies and permanent establishments established in low-tax countries within and outside the European Union. In particular, the new provisions for "Controlled Foreign Companies", which relate to the inclusion in the taxable income of non-distributed income of a legal person...

30 Aug 2022

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Marriage procedures for foreign nationals in Greece