Greece: Taxes and Costs

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Last Updated: Jan 15, 2009

Effective income tax ranges
from high to low in Greece

Effective Tax Rate on Rental Income
Monthly Income	€1,500	€6,000	€12,000
Tax Rate	2.8%	12.7%	22.8%
Click here to see a worked example
Source: Disclaimer

INDIVIDUAL TAXATION

Non-residents in Greece are taxed on their Greek-sourced income. Married couples are taxed separately, but some modifications are applicable. Non-residents are allowed to avail of deductions and credits, if they are residents of EU member states, and 90% of their worldwide income is from Greek sources.

INCOME TAX

Non-residents in Greece are liable to pay taxes on their income from Greek sources. The taxable income is generally an aggregate of all kinds of income, less income-generating expenses and applicable deductions. However, when income from employment comprises more than 50% of the declared income, different rates are applied to employment income.

Non-residents are also liable to pay a surtax of 5% on income up to €10,500, unless they are residents of EU member states and 90% of their worldwide income is from Greek sources.

INCOME TAX 2008
TAXABLE INCOME, €	TAX RATES
Up to €10,500	nil
10,500 – €12,000	15% on band over €10,500
€12,000 – €30,000	27% on band over €12,000
€30,000 – €75,000	37% on band over €30,000
Over €75,000	40% on all income over €75,000
Source: Global Property Guide

For 2009, the 27% tax rate will be reduced to 25% and the 37% tax rate will be reduced to 35%.

The non-taxable amount of income is increased by:

€1,000 for individuals with one dependent child;
€2,000 for individuals with two dependent children; and
€10,000 for individuals with three dependent children, increased by €1,000 for each additional child.

RENTAL INCOME
Rental income earned in Greece is taxed at the standard progressive rates. An additional surtax at a rate of 1.5% is also imposed on rental income. Income-generating expenses are deductible from the gross income. Instead of itemized deductions, taxpayers can avail of standard deductions – 40% for income-generating expenses (with supporting invoices) and 10% for depreciation.

Stamp Duty
Rental income (from buildings except houses) is subject to stamp duty at a rate of 3.6% of the actual rental value of the property. This tax is payable monthly.

CAPITAL GAINS TAX

Gains from the sale of real estate located in Greece are taxable. For properties purchased after 01 January 2006, the rate depends on how long the property was held. Capital gains are computed as selling price less acquisition costs.

CAPITAL GAINS TAX
HOLDING PERIOD	TAX RATE
Up to 5 years	20%
5 - 15 years	10%
15 - 25 years	5%
Over 25 years	nil
Source: Global Property Guide

Capital gains realized from properties purchased on or before 31 December 2005 are not taxable.

PROPERTY TAX

State Real Estate Tax

State real estate tax is imposed annually on natural and legal entities that possess Grecian property. The tax base is the objective property value on 01 January as assessed by the tax authorities. The general tax rate is 0.1% and the value no less than €1/m².

For private primary residences are not taxable provided that the property area is up to 200m² in size and the value does not exceed €300,000.

Local Real Estate Duty (TAP)

Local real estate duty is also levied annually on the value of the land. The rate varies between 0.025% and 0.035% of the assessed value of the property and is set by the local authorities.

CORPORATE TAXATION

INCOME TAX

Income and capital gains earned by companies are taxed at a flat rate of 25%. For partnerships, half of the income is taxed at 20% and the other half is added to the partner’s personal income. Expenses incurred in the process of acquiring income are deductible. Surtax at a rate of 3% is levied on the income of companies from real estate.

Greece - more data and information

Guide to buying houses and registering property sales in Greece