Tax treatment of dividends and capital gains according to the DTT between Greece and Switzerland
Based on the DTT between Greece and Switzerland, the following apply in relation to dividends and capital gains taxation:
Dividends (article 10)
Dividends paid by a company which is a resident of Switzerland to a resident of Greece may be taxed in Greece. However, such dividends may also be taxed in Switzerland according to the laws of that State, but if the recipient is the beneficial owner of the dividends, the tax charged shall not exceed 15% of the gross amount of the dividends. This tax treatment shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.
Therefore, the dividends derived from participation in a Swiss company shall be subject to taxation in Greece at a rate of 5%, and may be subject to tax also in Switzerland, in accordance with Swiss tax laws. However, the total tax paid on the dividends in Switzerland shall not exceed 15% of the gross amount. Moreover, in case of double taxation, Greece as the country of tax residence, provides a tax credit for the amount of tax paid in Switzerland but up to amount of the tax that would be payable in Greece (i.e. the 5%).
Capital gains (article 13)
Gains from the alienation of movable property shall be taxable only in the State of which the alienator is a resident i.e. Greece. Therefore, the capital gains derived from participation in a Swiss company are subject to taxation only in Greece at a rate of 15% according to the following applicable exemptions:
The following are exempt from capital gains tax in Greece:
• Capital gains from the transfer of listed shares and securities, provided the transferor holds less than 0.5% of share capital.
• Capital gains from Greek and EU/EEA UCITS (Mutual Funds).
• The taxation of income from capital gains on the transfer of immovable property has been suspended until 31/12/2026 (article 90 of l. 5162/2024).
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.