Tax In Greece

A Contractor's Guide to Taxes : 

One of the most consistently challenging aspects of contracting in Greece is complying with the country’s tax system. As well as paying tax in Greece, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge. 

How do I calculate my taxable income: 

If you’re working in Greece under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in Greece for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in Greece, but contractors may not be offered this service because of their short stay with each employer.

Anybody who can’t pay their tax in Greece through PAYE is left with the prospect of doing everything themselves.

Do you know much about Greek Tax Law? Does Greece have a tax treaty with your home country? You will need to find out or find someone who can help! Income tax in Greece can range from 22 to 45 percent, and you need to be sure you are placed in the correct tax brackets.

Tax Calculator: 

If you are a contractor and want a calculation on your tax and net retention in Greece, we can supply it to you free of charge. 

Using an Umbrella Company for Income Tax : 

Contractors in Greece are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. A Greek umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records).

The companies are experts in Greek taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Greek tax office or tax department directly including processing your tax refund if you are eligible.

How We Can Help You with Tax: 

We work with numerous umbrella companies in Greece, many of whom are experts in tax and immigration laws. If you have any questions about tax in Greece, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We have comprehensive knowledge of the different services they provide, and can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Greek work permit.

Our advice is 100 percent free, and comes with no obligations. You will be paying taxes in Greece but without the overhead of directly dealing with the Greek tax authorities. Get in touch with us today for some reliable advice on tax in Greece!

  

When Do You Need to Lodge Your Tax Return?: 
Tax returns may be lodged from 1 February.
Tax Filing Deadline : 
Usually 30 June. The deadline for filing Form E1 (basic declaration) is announced each year by the Ministry of Finance.
Can you file it online? : 
Yes, https://taxisnet.mof.gov.cy/login.jsp
Currency: 
Euro (EUR)
Tax-free Threshold in: 
None
Grossed Income: 
Up to 20,000
Tax Rate: 
22%
Grossed Income: 
20,001 to 30,000
Tax Rate: 
29%
Grossed Income: 
30,001 to 40,000
Tax Rate: 
37%
Grossed Income: 
Above 40,000
Tax Rate: 
45%
How long does it take to set up: 
12.5 days
How much does it cost: 
EUR 350
Is it easy? : 
Starting a Business Rank: 37 (Source: World Bank)
How to File Taxes in: 

Taxes in Greece must be filed electronically via TaxisNet using your AFM number. This site is only in Greek. If you face language difficulties, your local tax office can help with filing your return. If you’re outside of Greece and have no AFM or cannot file online, you must come to Greece yourself or have a ‘Limited Power of Attorney’ drawn from your nearest Greek consulate authorising a third party to request an AFM and file forms E1 and E9 on your behalf. The process of filing taxes yourself involves:

Step 1: Register for a Greek tax number (AFM) at your local Greek Tax Office (Eforia). Documents to bring include:

  • Original passport and photocopy of passport.
  • Original birth certificate and photocopy.
  • Marriage certificate if married.

Step 2: Register for a TaxisNet account here by filling in the required fields. Your Taxpayer’s Identification Code is your A.F.M. number.

Step 3: Log into TaxisNet using your username and password.

Step 4: File Form E1 which is the regular Greek income tax return. Late filing would incur fines up to EUR 100. To fill out this form, evidence regarding the following should be collected:

  • Income from pension
  • Income from rent
  • Income from interest on deposits
  • Information relating to property and cars
  • Loans taken out

Step 5: File a property declaration form (Form E9) if your land or property holdings have changed in any way. This may be if you:

  • Buy property,
  • Sell property,
  • Transfer property,
  • Inherit property or,
  • If your family situation changes – divorce, dependency of children, death.

Step 6: If you have any tax due, you can choose from two options to pay it off.

  1. Pay the full amount as one lump sum on the last business day of July
  2. Pay in 3 equal bi-monthly instalments, with the first due by the last business day of July and the remaining by the last business day of September and November.

Relevant government websites:

Notes: 

Personal tax in Greece is levied at progressive rates according to the above table.

An additional special solidarity tax contribution also applies. This is imposed on both local and foreign income of Greek residents and Greek-sourced income of foreign residents. The following progressive tax rates are applied:

Total income

Tax Rate

Up to 12,000

Tax exempt

12,001 to 20,000

2.2%

20,001 to 30,000

5%

30,001 to 40,000

6.5%

40,001 to 65,000

7.5%

65,001 to 220,000

9%

Above 220,000

10%

 

Severance payments are taxed at the following rates:

Severance payment Amount

Tax Rate

Up to 60,000

Tax free

60,001 to 100,000

10%

100,001 to 150,000

20%

Above 150,000

30%

Does the 183 day rule apply in: 

Yes, subject to the conditions above. 

When do you become a tax resident in: 

Individuals are considered a Greek tax resident if they satisfy any of the following:

  • Their centre of vital interests is in Greece (that is their domicile).
  • Their habitual abode is in Greece. This is satisfied if the individual spends more than 183 days in Greece (short stays outside Greece are included in the 183 days).
  • After 183 days, the individual will be deemed a Greek tax resident as of the beginning of the 183 day period. If they are also considered domiciled in Greece then they will be taxed for the full year as a Greek tax resident.
  • The 183 day rule does not apply to individuals coming into Greece for ‘medical, tourist or similar private purposes and staying in Greece for more than 183 days but less than 365 in a calendar year. 
Am I taxed on my global income in: 

Yes, if you are a tax resident. Non-residents are taxed on their Greek-source income only.

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