Quest Greek Islands

Taxation in Greece 2009

With the tax return deadline approaching for employees and pensioners in Greece, we explore the 2009 taxation situation for owners of Greek property, and those who reside or work in the country.

The Minister of Finance has said that he is committed to a fall in the overall tax burden and aims to reduce corporate and the middle band of personal income tax to 20% by the year 2014. To start this process, there are income tax cuts this year.

Employees and Pensioners

The deadlines for submitting tax returns are from 5 May to 2 June. If your income for the last year does not exceed 6,000 euros, you do not have to sumit a return.

If you wish to submit your return online via the internet, you can do so at www.taxisnet.gr (in Greek). To access the necessary forms to be completed, you'll need an ID number which you can obtain from the website, providing you submit a request five days or longer before the official deadline for returns to be submitted.

Companies

The tax year for companies ends on 31 Dec or 30 June. Tax returns are based on a self assessment regime. Companies must file a tax return within 5 months and 10 days after the close of the financial year. Advance payment of corporation tax is required, which amounts to 80% of the tax due for the preceding year.

Personal

For those who are domiciled in Greece, taxation is based on worldwide income. Those who are not domiciled in the country are taxed only on Greek-source income.

Returns should be submitted by 1 March for income during the previous year up to 31 December. Taxation is on total net income. There is no longer a tax exemption for the lowest income level. Previously non-taxable, the first 10,500 euros band threshold is now taxed at 10%.

Deductions

Certain expenses may be deducted to offset the tax burden, including such as:
- life insurance
- insurance payments
- medical expenses
- charitable donations...
providing proper receipts/invoices are submitted with your return.

Tax rates

This year, there are some reductions in the rates of taxation. Income from 12,000 to 30,000 euros will see the rate reduced from 29% to 27%. 30,000 to 75,000 euros, the rate is reduced from 39% to 37%

Property Tax

Property tax is levied at 0.1% on the total taxable value of the property which you own on 1 January each year. There are special rules relating to property which is your main residence.

Those who have income from real estate, must also complete an E2 form. An E9 form should also be completed for property.

Annual car licensing

This tax is increased by 20% for the year 2009 and if not paid in time, the amount is doubled.

Stocks and shares

A new capital gains tax has been introduced. 10% on selling shares and 10% on stock dividends.