Consumption taxes

Nature of the tax

A value-added tax (VAT) applies in Greece.

Tax rate

23%

Reduced tax rate

13% and 6.5%. The reduced rate of 13% indicatively applies to food products, pharmaceuticals, medical equipment and ancillary goods, transportation of persons, etc. The low rate of 6.5% applies to books and printed material as well as entries to theatres etc.

Other consumption taxes

Real Estate transfer Tax, Real Estate Tax, Inheritance and gift tax.

Corporate taxes

Tax rate

Tax rate for foreign companies

ome tax on their worldwide annual income. Foreign entities are taxable in Greece only on their Greek-source income. In addition, where such entities maintain a “permanent establishment” in Greece, they are taxed on income attributed there too. Generally, corporations’ gross income is reduced by their allowable expenses for the purpose of arriving at their net income. The tax rate applies on corporations’ net income.

Capital gains taxation

A capital gain in Greece is added to regular income and is taxable at the same rate as regular income for a company: 24%

Main allowable deductions and tax credit

There is no exhaustive listing of deductible business expenses in Greek tax law. In principle, all business expenses are deductible to the extent they fulfill the criteria set by the law.
For more information consult Deloitte Tax Guide.

Other corporate taxes

Capital gains Taxation, Real Estate Transfer Tax, Real Estate transfert Duty, etc.

Individual taxes

Tax rate

Allowable deductions and tax credit

in respect of his principal residence, up to 1100 EUR,
- 20% of the expense incurred for private lessons delivered to the taxpayer and/or his/her spouse and/or their children either at home or in private institutions, including foreign language courses up to 1100 EUR,
- 20% of the interest paid on mortgage-loans or loans guaranteed by means of a mortgage pre-note entered into by the taxpayer for the purpose of purchasing his/her first-ever private residence not exceeding 120 square meters,
- 20% of the total annual amount of medical and hospitalization expenses incurred by the taxpayer for the purpose of his/her own or his/her dependants’ treatment; the overall amount to be allowed cannot, however, exceed 6000 EUR.

For additional information, you can consult the PKF Tax Guide.

 

Special expatriate tax regime

Individuals not resident in Greece are taxed only on their income derived from a source therein.Foreign tax residents who generate income in Greece are taxed on the basis of the abovementioned progressive tax scale; however, they receive no relief in the first bracket of income, which is taxed at 5%.

Double taxation treaties

Countries with whom a double taxation treaty have been signed

List of the double taxation treaty sugned by Greece

Withholding taxes

Dividends: 0/21%, Interest: 5%/25%/40%, Royalties: 5%/20%/25%

Bilateral agreement

Greece and Tunisia are bound by a double taxation treaty: yes

Sources of fiscal information

Tax Authorities

MNEC

Other domestic resources

national tax department
Information on the national tax system