Last modified: 04/02/2025 08:39

Corporate taxation

	Rate
Corporate income tax rate	22%

Residence: A company is tax resident in Greece for any tax year if: a) was incorporated in accordance with Greek law, b) has its registered office in Greece or c) the place of actual administration is in Greece at any time during the tax year. The place of actual administration according to Greek tax law means: i. the place of daily management, ii. the place where strategic decisions are made iii. the place of keeping books and records iv. the place of shareholder’s meetings v. the residence of the board members vi. the place of Board of Dierctors meetings

Basis: A Greek resident company is subject to corporate tax on its worldwide income and gains with the option to exclude income and gains from foreign permanent establishments. If during the tax year a company which is tax resident in Greece acquires income abroad, the income tax payable by that company, in respect of that income, is reduced by the amount of tax paid abroad on that income . The payment of the tax amount abroad is proven with the relevant supporting documents, as described in the law.

Taxable income: Taxable income in Greece is the income remaining after deducting the expenses that are tax deductible, depreciation and provision of bad debts. Greek tax law distinguishes the following categories of gross income: a. income from business activity b. income from capital and c. capital gains

Significant local taxes on income: None

Alternative minimum tax: No

Taxation of dividends: Withholding tax 5%

Capital gains: Capital gains are considered as business income and is taxed at 22% corporate tax rate

Losses: Losses are carried forward to be set off against the business profits consecutively in the next 5 tax years.

Foreign tax relief: Tax payers (companies and individuals) who has a tax residence in Greece acquires income abroad, the income tax payable by that taxpayer, in respect of that income, is reduced by the amount of tax paid abroad on that income (if a Tax Treaty applies) . The payment of the tax amount abroad is proven with the relevant supporting documents.

Participation exemption: see “Taxation of Dividends” and “Capital gains”

Holding-company regime: see ” Taxation of Dividends”. Greek tax law provides for exemption for Intracommunity dividends received by a company that is tax resident in Greece when the following conditions are met: a. the recipient company owns a minimum participation percentage of 10% of the shares or share capital, b. the minimum percentage of participation is maintained for at least 24 months, c. is considered tax resident of an EU member state, in accordance with the legislation of that state and is not considered a resident of a third country outside the EU under the terms of a double taxation treaty which has been signed with that third country d. is included in the types listed Directive 2011/96/EU

Tax-based incentives: Greek tax law provides tax based incentives (for companies) at the time of implementation for the following expenses : a. Scientific and Technological Research Expenditures (increased by 100% when the conditions of art.22A of Greek tax law are met) b. Granting an additional discount for specific costs related to employees and environmental protection (when the conditions of art.22B of Greek tax law are met). C. Granting an additional discount for expenses related to green economy, energy and digitization (increased by 100% for small and medium size companies when the conditions of art.22E of Greek tax law are met) Also Greek Tax Law provides tax incentives for a. Patent incentives b. Incentives to boost employment c. Incentives to enhance the production of audiovisual activities d. Incentives for implementation of e-invoicing e. Incentives for companies producing electric vehicles f. Incentives for Family offices

Group relief/fiscal unity: Not applicable

Small company/alternative tax regimes: Corporate tax income rate still remains the same 22% irrespective the size of the company.

Corporate taxation: compliance

Tax year: 01/01-31/12 or 01/07-30/06 Tax year cannot exceed 12 months.

Consolidated returns: Not applicable

Filing and payment: The income tax return is submitted till 15/07 of the immediately following tax year. The income tax payable is calculated on the annual tax return of the taxpayer and the amount is determined after deducting from the corporate income tax the following: a) the tax withheld, b) the tax which was paid in advance, c) the tax paid abroad adding the income tax advance of the next year The tax is paid in a maximum of 8 equal monthly installments.

Penalties: Penalties are assessed in the following cases : a. Failure to submit the income tax return, b. Late submission c. Inaccurate submission

Rulings: Ministerial decisions interpreting the Tax Law

Taxation of individuals

	Rate
	Federal Income Tax
0-10.000	9%
10.001-20.000	22%
20.001-30.000	28%
30.001-40.000	36%
40.001 –	44%

1.Income (Salaries, Pensions, Business Activity of individuals)

2.Special regimes exist for :

i. foreigners , high net worth individuals who transfer their tax residency in Greece

ii. Retired foreigners who wish to reside in Greece and

iii. Salaries and income form business activity arising in Greece of individual who transfer their tax residency in Greece

Residence: Individual is considered tax resident of Greece if: i. has in Greece his permanent or main residence or his habitual residence or the center of his vital interests ii. Taking into account condition (i), individual in Greece for a period exceeding 183 days in a tax year

Basis: All taxpayers are taxed on an individual basis. Greek tax resident individuals are subject to Greek tax on their worldwide income and gains.

Taxable income: Income from Salaries and Benefits in Kind, Pensions, Business Activity of Individuals , property income. Also tax is imposed for the following categories of income: a. dividends 5% b. interests 15% c. royalties 20% d. rental income: 15% 0-12.000 euros , 35% 12.001-35.000 euros ,45% over 35.001 euros

Capital gains: Capital gains from: 1. Capital gain tax 15% on Sale of immovable property (is suspended till 31.12.2026). 2. Capital gain tax 15% on sale of company’s shares

Deductions and allowances: Greek Tax law provides various deductions on taxable income for salaries and pensions

Foreign tax relief: see “Foreign Tax Relief” (Corporate Taxation)

Taxation of individuals: compliance

Tax year: 01/01-31/12

Filing and payment: The personal income tax is calculated on the basis of the taxpayer’s annual tax return and the amount of the tax obligation is determined after deduction of: a) the tax withheld, b) the tax paid in advance (only for business activity of individuals), c) the tax paid abroad The declaration is submitted till 15/07 of the immediately following tax year. The tax is paid in a maximum of 8 equal monthly installments. The spouses, during the marriage, submit a joint declaration of their incomes. However, the declaration may be submitted separately, if at least one of the spouses chooses to do so.

Penalties: a. late submission of the income tax return b. Failure to submit the statement c. Inaccurate submission

Rulings: Ministerial decisions interpreting the Tax Law (for individuals)

Withholding taxes

Type of Payment	Resident recipients		Non-residents recipients
	Company	Individual	Company	Individual
	Rate (%)	Rate (%)	Rate (%)	Rate (%)
Dividends	5%	5%	see Note 1	see Note 1
Interest	15%	15%	see Note 1	see Note 1
Royalties and other payments	20%	20%	see Note 1	see Note 1
Technical Projects	3%	3%

1. As provided in the double taxation avoidance agreement between Greece and the relevant country of which the payee is tax resident

Branch remittance tax: Not applicable

Anti-avoidance legislation

Transfer pricing: Greece transfer pricing regime follows the OECD principles. According to Greek tax legislation an entity is obligated to prepare Transfer pricing file and submit annually Summary table of information when: A. Total transactions with related parties exceed €100.000 and annually turnover of the entity does not exceed €5.000.000 B. Total transactions with related parties exceed €200.000 and annually turnover of the entity exceed €5.000.000

Interest restriction: Excess borrowing costs are deductible in the tax year in which they occur up to thirty percent (30%) of the taxpayer’s earnings before interest, taxes and depreciation (EBITDA). Taxpayer is granted the right to deduct the excess borrowing costs up to the amount of 3.000.000 euros annually.

Controlled foreign companies: According to Greek Tax Law , Controlled Foreign Company means the foreign legal person or the permanent establishment abroad, the profits of which are not taxed or exempt from tax in the country, when the following conditions are cumulatively met 1.PARTICIPATION CRITERIA The entity (taxpayer) alone or together with the companies connected to it, holds direct or indirect participation in a percentage of more than 50% of the voting rights or has direct or indirect ownership of a percentage of more than 50% of the capital or is entitled to collect more than 50% of the profits of said legal person or legal entity. 2.THE CRITERION OF TAX PAID The actual corporate tax that the legal person or legal entity or permanent establishment has paid on its profits abroad is less than the difference between the tax that would have been owed by the legal person or legal entity or permanent establishment, according to under Greek legislation, if he was a tax resident or maintained a permanent establishment in Greece (due to Greek tax law) and of the actual corporate tax paid on his profits by the legal person or legal entity or permanent establishment. 3.THE INCOME CRITERION more than 30% of the net income before taxes realized by the legal person or legal entity or permanent establishment abroad falls into one or more of the following categories i. interest or any other income generated by financial assets ii. royalties or any other income generated from intellectual property iii. dividends and income from the sale of shares iv. lease income v. income from insurance, banking and other financial activities vi. income from billing companies that derive revenue from the sale of goods and services bought and sold to its affiliates that add no or little economic value.

Hybrid mismatches: Relevant EU legislation has been adopted by Greece Greek tax legislation implement provisions to avoid hybrid mismatches arising under various cases of business transactions in which companies, legal entities, permanent establishments in Greece , entities established outside EU are involved or business transactions between head offices and permanent establishments.

Disclosure requirements: Not applicable

Exit taxes: Exit taxation rule apply to transfers of assets, tax residences or activity of either a Greek company or permanent establishment outside Greece. Any capital gain that occurs at the time of exit , is taxable at the corporate income tax rate applicable at the time of exit (current income corporate tax 22%) Certain exceptions apply.

General anti-avoidance rule: When determining tax, the Tax Administration may ignore any artificial arrangement or series of arrangements that aims to avoid taxation and leads to a tax advantage.

Digital services tax and Other significant anti-avoidance legislation: see “General anti-avoidance rule”

Value-added tax/Goods and services tax

Type of tax: Value Added Tax (VAT) applies in Greece, which is based on the EU Directive. Value-added tax applies for purchase of goods and providing services although various supplies or services and intra-community transactions are exempt from VAT

Standard rate: VAT standard rate : 24%

Reduced rates: VAT reduced rates : 13% , 6% and 0%

Registration: Tax office and VIES (registration for VAT-VIES number) If a company or self-employed person operates in a VAT-exempt industry there is no obligation to register to VAT department of tax office or VAT-VIES. If a company exceed the EU transactions threshold , is obliged to register in VIES system

Filing and payment: 1.VAT monthly declarations are submitted in the following month of the reporting month for companies that keep double entry books. For companies that keep single entry books , VAT declarations are submitted every three months 2. VAT Payment until the end of the following month from the month of the declaration

Social security contributions

	Employer	Employee
	Rate (%)	Rate (%)
Totals	21,79%	13,37%

1. The above percentages of social secure contributions are applied from 01/01/2025
2.  Salary ceiling for the calculation of insurance contributions is set 7.373,53 euros from 01/01/2024.

Self-employed

There are 6 insurance classes for self employed and the range of monthly social secure contributions is from €238,22 to €642,06 Self employees decide in which category they fall into and pay the corresponding insurance contributions

Other taxes

Capital duty: The imposition of Capital Tax during the establishment of the companies is abolished. Capital tax applies to future capital increases of companies to 0,2% of the amount of the increase.

Immovable property taxes: Annual tax on immovable property (ENFIA).

Transfer tax: In every transfer of real estate for consideration in Greece, a tax is imposed on its value and the buyer is liable for its payment. Before drawing up the transfer contract, the seller and the buyer submit a joint Property Transfer Tax return. The transfer tax is calculated at 3% on the taxable value of the property. Reduced rates apply in specific cases

Stamp duty: Stamp Duty is applicable on a case by case contracts with factors of 1,2% – 2,4% – 3,6% & 0,3%

Net wealth/worth tax: A luxury tax is imposed in Greece for private use cars over 1.929cc , aircrafts, helicopters, swimming pools and private use boats over 7m. Private use cars over 1.929 cc older than 10 years are not imposed to luxury tax.

Inheritance/gift taxes: There are 3 categories of relationships in which the taxpayers are classified. Inhetiance tax rates as follows: Category A Scale € Rate % Scale Tax € Taxable properτy € Corresponding Tax € 150.000 – – 150.000 – 150.000 1 1.500 300.000 1.500 300.000 5 15.000 600.000 16.500 over 10 Category B Scale € Rate % Scale Tax € Taxable properτy € Corresponding Tax € 30.000 – – 30.000 – 70.000 5 3.500 100.000 3.500 200.000 10 20.000 300.000 23.500 over 20 Category C Scale € Rate % Scale Tax € Taxable properτy € Corresponding Tax € 6.000 – – 6.000 – 66.000 20 13.200 72.000 13.200 195.000 30 58.500 267.000 71.700 over 40 For Donations /Gifts in cash from parents/grandparents to children and between spouses : donations up to €800.000 are not imposed to tax and for the amount over €800.000 Donation / Gift tax 10% is imposed . For Donations /Gifts in cash from donors between individuals under category B, rate 20% is imposed. Additional for Donations /Gifts in cash from donors between individuals under category C, rate 40% is imposed.

Other: 1.A special tax of 15% on the tax value of a property in Greece is levied if the property or its usufruct is owned by legal entities (including trusts) or where the property is in the entity’s bare ownership. There are various exemptions from this tax. These include an exemption for Greek or other EU companies, provided that the individuals who are the ultimate shareholders are identified and have a tax registration number in Greece. Other exemptions apply to shipping companies under Law 89/1967 and to quoted companies. 2. Excise duties: Greece charges excise duties on fuel oils, coal and coke, tobacco, alcoholic beverages, gas and electricity.

Tax treaties

Greece has sign tax treaties with 58 countries in order to avoid double taxation