Understanding the Taxes in Greece

Have any plans of moving to Greece? Make sure you know what you're getting into. Though this Mediterranean country is great for a two-week vacation, it's an entirely different story when you move here. There a lot of things you have to understand, to familiarize yourself with, and to understand. Not the least of which is the country's tax system. If you don't understand how it works during the first month of your new life here in Greece, you're in for a whirlwind of a stay here. So to help you out, here are some info, though general, on what to expect when paying taxes in Greece.

 

The Obligation of Paying Taxes in Greece

First of all, are you even legally required to pay taxes in Greece? If you're a citizen or resident, yes, you are! However, there are other criteria to determine if you will be a taxpayer here. If you've spent approximately 183 days in the country—more or less six months in total—you're required to pay taxes. If you're employed in Greece even though you're not a legal resident here, you're still obliged to contribute your fair share to the federal government. And if you have investments or business here, you're legally required to pay taxes in Greece. That's just the way it is. 

 

Greece's Personal Income Tax Rates

Arguably the most common type of tax in Greece is the personal income tax, which practically everybody pays. Though there are certain thresholds you have to meet in order to pay a particular rate. It all depends on your annual income. If you earn less than €20,000.00 a year, you don't have to contribute this tax. However, when you earn €20,000.00 a year, your rate is 22%. From €21,000.00 to €30,000.00, the rate is 29%. If you earn €30,001.00 to €40,000.00 annually, your rate is 37%. And an annual income above €40,000.00 will require you to pay 45% in personal income tax.  

 

 

The Corporation Tax Here

As already mentioned, if you run a business here in Greece, you'll also have to pay taxes to the national government. But this also applies to businesses founded in other countries but have branches and operates in Greece as well. And for this, you have to pay the country's corporate tax. Since 2019, the standard rate for such is 26%, applicable to all companies running and profiting in Greece. It's also important to note that local Greek companies are required to pay taxes on international income as well. While international companies that do business in Greece will only have to pay taxes on the profit they earn here. 

 

Capital Gains Tax in Greece

In terms of capital gains, Greece imposes theirs rather unique compared to those in other countries. Here, the capital gains aren't taxed separately from income and profit but rather added to them, save for a couple of exceptions. Usually, gains from the sales of shares quoted on the Stock Exchange are taxed at a standard rate of 10%, while sales of shares not quoted on the Stock Exchanged are taxed at 5% of the sale value. Meanwhile, any earnings you have from interests in any local company will be taxed at 20%, separate from your personal income tax. 

 

 

Greece's Inheritance Tax

Know the stereotype that the Greeks are family-oriented people? Well, the federal government knows this and has therefore imposed an inheritance tax. For direct heirs inheriting any real property in this Mediterranean country, they will be taxed at a rate range of 0% to 40% depending on the value of the property inherited and the rate laid out by the local government. For close relatives, on the other hand, that aren't specifically named in a legal will and are not direct heirs, they will be taxed at a rate range from 1% to 10%. 

 

The VAT in Greece

Finally, a certain type of tax that everyone ought to be familiar with here in Greece is the VAT or the Value-Added Tax. This is imposed on several goods & services purchased within the country, helping earn a lot of revenue to assist the federal government to run the country smoothly. Most items sold in Greece have a VAT rate of 24%, save for a couple that are deemed more necessary. For instance, fresh food and products for child and elderly care are taxed at a lower rate of 13%. While medicine, vaccines, and medical books are only taxed at 6%. 

 

 

The more you know about Greece's taxes, the easier your life here will be. Moving to this country isn't just about building a new life here. It's also about contributing your fair share to help the country as a whole. 

Once you've gotten a better hold of your taxes and other finances, you can now invest in a luxurious Greek home for your new life here in this beautiful European country!