Tax treatment and declaration of income from property located in the UK and received by individual tax resident in Greece
The income from property located either in Greece or abroad that is received by an individual who is tax resident in Greece, is considered as capital income and is taxed separately according to the following scale under article 40 par. 4 of the Income Tax Code (hereinafter referred as “I.T.C.”):
| Income from real estate property (€) | Tax rate (%) |
| 0 – 12.000 | 15% |
| 12.001 – 35.000 | 35% |
| 35.001 – …… | 45% |
It should be noted that 5% of the gross income of foreign origin is recognized as 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.
Especially as regards the income from property located in the UK, we note the following:
- 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 has been paid in UK must be credited against Greek tax payable in respect of the same income. The reduction of income tax, by the amount of tax paid abroad, cannot exceed the amount of tax due on this income in Greece.
- As regards the declaration of the amount of UK income via the annual income tax return, the following tax codes are required to be completed:
– tax code 029 – 030: where “YES” (in Greek “NAI”) must be chosen. The taxpayer declares that he/she has assets and receives income abroad and especially from real estate.
– tax code 171 – 172: where the net amount of UK income from property is declared
– tax code 175 – 176: where the paid UK tax is declared.
Following the completion of this tax code, the Tax Authority will usually request the relevant supporting documentation which proves the payment of UK tax for the same income.
So, the Greek Tax Authority imposes tax on income from UK property, but the tax paid in UK will be credited against Greek tax payable, so that the taxpayer will pay in Greece either the difference or no tax at all.
* 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.