Greece, like all countries, has its own tax system for individuals and corporations, which has unique characteristics. Income taxes in <\/span>Greece<\/span><\/a> are progressive, meaning the more you earn, the higher your tax rate. Both employees and self-employed individuals pay taxes on their personal income. Permanent residents are taxed on their global income, whether earned in Greece or abroad.<\/span><\/p>\n Non-residents in Greece are taxed only on income generated within the country. Married couples are taxed individually but may qualify for certain deductions or adjustments. Additionally, residents of an EU member state who earn at least 90% of their income in Greece may be eligible for specific deductions and credits.<\/span><\/p>\n Who Must Pay Taxes in Greece?<\/b><\/p>\n The following individuals or entities are required to pay taxes in Greece:<\/span><\/p>\n There are mainly 5\u00a0 types of taxes in Greece:<\/span><\/p>\n Both individuals and corporations in Greece are subject to income taxes, with rates determined by a well-defined scale.<\/span><\/p>\n In Greece, income tax is deducted monthly from an employee\u2019s salary. Taxable income includes earnings from employment, professional activities, and investments.<\/span><\/p>\n Resident corporations in Greece are taxed on their worldwide income, while non-resident corporations are taxed only on income generated within Greece.<\/span><\/p>\n Starting from the fiscal year 2021, the standard corporate income tax rate in Greece is 22%. However, credit institutions are subject to a higher tax rate of 29% if their income is subject to the specific provisions of Article 27A of the Income Tax Code (ITC).<\/span><\/p>\n Value-added tax (VAT) is applied to most goods and services in Greece. The standard VAT rate is 24%. However, this rate is reduced by 30% in five specific islands and for certain goods or services. Small enterprises that generate less than \u20ac10,000 per year in revenue from the supply of goods and services may qualify for VAT exemption.<\/span><\/p>\n 24% for tobacco products and means of transport<\/span><\/td>\n<\/tr>\n Social Security tax in Greece is deducted directly from an employee’s salary by the employer. Self-employed individuals are required to make advance payments on their income tax and pay social security contributions from their personal income. The national insurance system covers unemployment, pension, and healthcare insurance.<\/span><\/p>\n For social security, the employer contributes 25.06% of the salary and the employee 16%.<\/span><\/p>\n When purchasing property in Greece, buyers are required to pay taxes based on a percentage of the property value. Additionally, an annual uniform tax is levied on the ownership of real estate, along with a municipal tax. The uniform tax is determined by various factors such as the property\u2019s value, size, location, surface area, and its intended use.<\/span><\/p>\n Capital gains tax is applied on the sale of an asset and is due only after the asset is sold. This tax applies to capital assets such as stocks, bonds, digital assets, jewelry, coin collections, and real estate. Long-term capital gains (from assets held for more than one year) are taxed differently from short-term capital gains, which are taxed at the regular income tax rate.<\/span><\/p>\n Foreigners can benefit from reduced income taxes if they become tax residents of Greece and choose one of the below three special tax regimes.\u00a0<\/span><\/p>\n The first regime is for foreigners employed in Greece:<\/b> Individuals who reside in Greece and work in Greek companies; those who are self-employed or have a business in Greece can apply to this regime. They enjoy the perk of paying tax on only 50% of their income earned in Greece for seven years.\u00a0<\/span><\/p>\n Eligibility criteria:\u00a0<\/span><\/p>\n The second regime is for foreign pensioners:<\/b> Retirees who have recently become Greek tax residents are taxed a flat rate of 7% on their foreign income, paid in a lump sum for a maximum period of 15 years.\u00a0<\/span><\/p>\n Eligibility criteria:\u00a0<\/span><\/p>\n The third regime is for high-net-worth individuals: <\/b>High-net-worth individuals (HNWI) who have recently become Greek tax residents pay a lump tax of \u20ac100,000 per year on foreign source income, regardless of its amount. Under this regime which applies for 15 years, HNWIs are exempt from inheritance and gift tax on foreign assets.\u00a0<\/span><\/p>\n Eligibility criteria:\u00a0<\/span><\/p>\n The above blog has detailed the tax system that Greece applies to its citizens, residents, and corporations. By thoroughly understanding its tax regime, moving to Greece becomes less cumbersome, and you will be able to make informed decisions. For individuals seeking residency options with significant investment opportunities, the <\/span>Greece Golden Visa<\/span><\/a> program offers a pathway to becoming a resident, along with numerous tax benefits and other advantages.<\/span><\/p>\n Read more:\u00a0<\/b><\/p>\n\n
Types of Taxes in Greece<\/h2>\n
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Income Taxes in Greece<\/span><\/h2>\n
Individual Income Tax in Greece<\/h3>\n
Individual Income Tax Rates<\/h3>\n
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\n Taxable Income (Euro)<\/b><\/td>\n Tax Rate<\/b><\/td>\n<\/tr>\n \n Up to \u20ac10,000<\/span><\/td>\n 9%<\/span><\/td>\n<\/tr>\n \n \u20ac10,000 \u2013 \u20ac20,000<\/span><\/td>\n 22%<\/span><\/td>\n<\/tr>\n \n \u20ac20,000 \u2013 \u20ac30,000<\/span><\/td>\n 28%<\/span><\/td>\n<\/tr>\n \n \u20ac30,000 \u2013 \u20ac40,000<\/span><\/td>\n 36%<\/span><\/td>\n<\/tr>\n \n Over \u20ac40,000<\/span><\/td>\n 44%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Corporate Income Tax in Greece<\/h3>\n
Corporate Income Tax Rates in Greece<\/h3>\n
Value-Added Tax (VAT) in Greece<\/span><\/h2>\n
Value-Added Tax Rates in Greece<\/h3>\n
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\n VAT Category <\/b><\/td>\n VAT Rate<\/b><\/td>\n<\/tr>\n \n Standard VAT Rate (except for the 5 islands)<\/b><\/td>\n 24%<\/span><\/td>\n<\/tr>\n \n VAT Rate in the Islands of Leros, Lesbos, Kos, Samos, Chios<\/b><\/td>\n 17% for most goods and services<\/span><\/p>\n \n Reduced VAT Rate (13%)<\/b><\/td>\n For some staple goods (bread, milk, meat, fish), stays at tourist accommodation establishments, domestic care services, and operations of F&B enterprises<\/span><\/td>\n<\/tr>\n \n Super Reduced VAT Rate (6%)<\/b><\/td>\n (6%)\u00a0 <\/span> For certain medicines, vaccines, books, newspapers, magazines, electric energy, natural gas, white walking sticks, Braille typewriters, and tickets to theaters, cinemas, concerts, zoos, and sports events<\/span><\/td>\n<\/tr>\n \n Exempt from VAT (0%)<\/b><\/td>\n Certain health, education, cultural, social welfare, financial services, and insurance services<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Social Security Tax in Greece<\/span><\/h2>\n
Social Security Tax Rates in Greece<\/h3>\n
Property Taxes in Greece<\/span><\/h2>\n
Property Tax Rates in Greece<\/h3>\n
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Capital Gains Tax in Greece<\/span><\/h2>\n
Capital Gains Tax Rates in Greece<\/h3>\n
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Preferential Tax Regime in Greece<\/span><\/h2>\n
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Conclusion<\/h2>\n