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 and UK is applicable. According to article 14 of Double Taxation Agreement between Greece and UK, if income is subject to tax in both territories, relief from double taxation shall be given. In particular, UK tax payable, whether directly or by deduction, in respect of income from sources within UK shall be allowed as a credit against Greek tax payable in respect of that income. So, the tax that you have paid in UK must be credited against Greek tax payable in respect of the same income.
The Greek Tax Authority imposes tax on income from UK property. However, in case that tax related to the same income from UK property has been paid in UK as well, this UK tax is credited against Greek tax payable so that the taxpayer pays in Greece either the difference or no tax at all. Noted that the reduction of income tax, by the amount of tax paid abroad, cannot exceed the amount of tax due on this income in Greece.
Further, the following tax codes must be declared in the Greek income tax return (Form E1) which filed every tax year in Greece:
- tax code 030 where the taxpayer should choose the option “YES” (in Greek “NAI”) i.e. the taxpayer declares that he/she has assets and receives income abroad and especially from real estate.
- tax codes 171-172 where the total net income from real estate located abroad must be filled in (after deducting 5% for expenses, this deduction is only carried out when the income comes from real estate and not from land), except for the free concession of the use.
- tax codes 175-176 where the amount of paid UK tax should be declared.
* The information is accurate to the best of our knowledge as at the time of writing. We have no obligation to update it. We accept no responsibility against any third party who is not a client of the firm and has not signed the terms of our engagement.