Greece: Taxes and Costs

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Effective income tax rates range from low to high in Greece

Effective Tax Rate on Rental Income
Monthly Income	€1,500	€6,000	€12,000
Tax Rate	3.8%	15.6%	22.8%
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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 can claim 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.

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 normal 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 – 15% for income-generating expenses and 10% for depreciation.

Stamp Duty

Rental income 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.

PROPERTY TAXATION

State Real Estate Tax

State Real Estate Tax is levied annually on the value of real estate situated in Greece. The rates are progressive, with certain deductions available.

Each spouse is allowed to deduct €243,600 from the taxable value of the property. For each one of the first and second children under age, an additional exemption of €61,650 is granted, and €73,400 more for each child under age.

Local Real Estate Duty

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

Corporate income is taxed at a flat rate of 25%. The income of partnerships is taxed at 20%. 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.

Capital Gains

Capital gains are generally regarded as ordinary income and taxed at 25% for corporations and 20% for partnerships. Capital gains are computed as selling price less book value.

Greece - more data and information

• Guide to buying houses and registering property sales in Greece

Your Comments

posted by Donald Budge | 2008-04-14

Retired, Crete

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