If I become a Greek resident, how will my income from overseas / abroad be treated?
Many greek residents, including those who transfer their tax residence to Greece, continue to earn income from abroad. As a Greek resident, it's important to understand how income from abroad is treated and taxed in Greece. Treatment of Income from Abroad for Greek Residents Greek residents are required to declare all their worldwide income on their annual tax return in Greece. This includes income earned from overseas. However, there are certain cases where Greek residents may be exempt from taxation on foreign income. For example, if you are a tax resident in another country with which Greece has a tax treaty, you may be able to avoid double taxation. One example is America which has a double tax treat with Greece that clearly stipulates how different types of income are to be treated. Our team members have a comprehensive understanding of this tax treaty. Additionally, certain types of income from abroad may be exempt from Greek taxation, such as capital gains from the sale of shares in foreign companies. Discussions have commenced between the Ausrtalian and Greek governments for the establishment for a double tax treaty, however, to date, nothing has been finalised. As a Greek resident earning income from abroad, it's important to be aware of your tax obligations in Greece. While Greece has a progressive income tax system, there are certain cases where exemptions may apply, such as tax treaties with other countries. Additionally, property income and other forms of income may be subject to different tax rates. At Tsaks Consulting, our partner accountants are experienced in advising on taxation for expats and we can help you navigate the complexities of taxation in Greece and ensure that you are compliant with all applicable laws and regulations.
Is the credit method applied in greece for income from abroad where the overseas country does not have a double tax treaty in greece?
Generally speaking, and through case law, Yes. Greece applies the credit method for income earned abroad in countries where Greece does not have a double tax treaty. The credit method (as opposed to the exemption method) results in the foreign income tax paid in the other country being credited against the Greek income tax liability, up to the amount of Greek tax that would have been payable on that income. The result of this is that Greek residents who earn income abroad in countries where there is no tax treaty with Greece can avoid double taxation by claiming a credit for the foreign taxes paid. There is of course evidence required such as pay slips, tax returns and other evidence. It is important to note that the total credit cannot be greater than the amount of Greek tax liability and any excess foreign tax credit cannot be carried forward or refunded.
What is the Enfia in Greece? What taxes do you have to pay if you own a property in Greece?
ENFIA (the Single Property Tax) is an annual tax on property in Greece. It was only relatively recently introduced (in 2014) and it replaced the previous property tax system which was in place in Greece. Similar to land tax in Australia, the ENFIA is calculated based on the objective value of the specific property. This value is determined by the tax authorities. The Greek tax authorities take into account the various factors when calculating the property value including: - The location. - The age of the property. - The size of the property. - The condition of the property. All types of property, including residential, commercial and agricultural (land) qualify for ENFIA to be paid. There are other taxes which apply to property, generally when the property generates an income or a capital gain. These include: - Income tax. Any rental will result in the application of income tax. This is generally 15%. - Capital Gains tax - this will apply if and when the property is sold at a profit. There is a tax payable on any capital gains. This is generally 15%. - Value Added Tax which is payable on the purchase of new properties. This is generally 24%. The above taxes, and associated tax rates can change. Contact our team at Tsaks Consulting to discuss your tax situation.
Is there an English speaking tax accountant or tax lawyer in Greece than can help with my change of tax residency?
Yes. Our experienced lawyers and accountants speak fluent English as well as Greek of course. There are many reasons for people to change their tax residency to Greece. Some people, from England, America, Canada and Australia simply move to Greece or live in Greece for an extended period of time (over the 183 days per year minimum). As a result they change their tax residence. Over the past few years, we have seen a lot of clients move their tax residence to Greece to take advantage of Greece's tax incentives. These include:
- The 'high net worth' tax initiative. This initiatives imposes a cap in tax for high net worth individuals of 100,000 euros per year to the greek tax authority. This is highly attractive to global high net worth individuals. One of the key advantages for High Net Worth Individuals in Greece is that that family members are exempted from taxes regarding gifts, inheritance and there is no minimum time of stay in the country under this specific regime.
- A 50% decrease in tax incentive for foreigners returning to Greece who have been outside Greece for over 7 years.
Can you purchase property in Greece as a foreigner?
Yes. Foreigners are allowed to purchase and own properties in Greece. In addition, there are avenues for foreigners to become a Greek resident. EU citizens have a much easier and more streamlined route to purchasing property in Greece.
What documentation do I need before I can purchase a property in Greece?
In order to own properties in Greece you need to pay taxes in Greece. In addition to having a registration card or even a residence permit, also need to apply for a tax number as well as open a bank account at a Greek bank. Other key documents you generally need in order to purchase a property include:
- A passport
- An AFM
- A visa (this does not apply to EU citizens)
- Some proof of a residence in Greece (such as a rental contract)
- A copy of your annual tax returns (if applicable).
What taxes or costs do I normally have to pay when purchasing a property in Greece is I'm from America, Canada, England or Australia?
There are a range of taxes and costs payable when purchasing a property in Greece. IN addition to the property transfer tax which is 3%, you generally need to pay: - Fees to the real estate agent (which are generally between 2 - 3 %) plus VAT. Our team can help you negotiate this fee down when we act on your behalf. However, you need to engage us to act on your behalf prior to engaging the real estate agent. - Fees for the public notary approx 0.7% plus VAT of the value of the property - Legal fees approx 0.5% + VAT of the value of the property (ask our team today for a quote) - Public registration fee 0.5% of plus VAT of the property value
Can I buy a property in Greece from overseas without being in Greece?
Yes. This is possible and our team can assist you with this. You will need to give one of our partner lawyers a power of attorney to act as your representative. Then we can sign all of the documentation on your behalf. However - please note that if you are from a non-eu country such as Australia, America or Canada, you will need to sign the power of attorney before a Greek Consular Authority or a Greek notary.
Am I allowed to rent out my property in Greece?
Yes. Most definitely and many people do. This is a great way to get income when you are not using your property. AIRBNB is a popular option as well. We don't provide real estate services but can put you in touch with some companies who do.
Are there any incentives or special laws to consider with purchasing and owning property in Greece?
Yes there are and they vary from property to property. For example, there are laws governing how close to a beach you are permitted to build and special permits required. In addition, there are laws for properties in seismic areas such as kalamata. There are also incentives available for people when renovating properties and making their buildings more energy efficient. Our team can guide you on any incentives and grants applicable to you.
Do I have to file taxes in Greece?
Yes. If you reside in the country for over 183 days, or alternatively, if you are a Greek resident, then you need to pay taxes on your worldwide income. Talk to our team of english speaking accountants and lawyers for more information and guidance.
How do I declare tax in Greece?
Yes. Our consultants specialise in providing this service for expats including from America, Australia and Canada. Generally speaking, this involves filling in an E1 form.
Do I need a tax representative in Greece?
Yes - Our team at Tsaks Consulting can help. If you are a resident in Greece you do not need a tax representative although it is recommended if your situation is complicated or you rqeuire some expert help in general. If you are based overseas, a tax representative (such as our team) can assist.
Does Greece tax international income?
Yes. Greek does tax international income. It generally depends on which country the income is coming from. Greece has a double tax treaty with many countries such as the USA and the UK. This governs how income is treated. Where there is no DTT in place, the credit method is often adopted. Our team provides tailored advice to expats and international businesses on their tax obligations in Greece as well as to locals.
How is business taxed in Greece?
There is no simple answer to this question. It generally depends on the individual situation of your business and what business activity you are undertaking. Talk to one of our Tsaks Consulting team members for more information.
What is the tax rate for foreigners in Greece?
The tax rate for foreigners in Greece depends on your individual situation. Read our 2023 guide for more info.
What taxes do you pay in Greece?
In Greece you can pay a broad range of taxes depending on your individual situation. More detailed information is available at in our 2023 tax guide.