INFORMATION ON GREEK INCOME TAX - 2011

Who is liable to pay taxes  
What income is taxable in Greece  
Taxation of spouses and minor children 
Tax bracket changes 
What about receipts?  
Receipts included in the scheme
Receipts already included in past years
Audit Evidence 
Audit evidence of residence  
Audit evidence of cars
To be filed with the INITIAL declaration
Avoidance of Double Taxation


Who is liable to pay taxes

Every person acquiring income in Greece regardless of their nationality and of their place of residence. Also every person residing in Greece, regardless of nationality needs to pay income tax for their income originating from other countries. 

More specifically, the persons possessing a car being audit evidence, possessing a home, operating a business, possessing or building real estate, participating in a company, acquiring gross annual income from real estate lease exceeding 600 € annually, buying cars, motorbikes, boats or airplanes, acquiring ownership of real estate in any form (full ownership, naked ownership, usufruct), needing to file an E9 document because of changes in their family situation or possessions, being invited to do so by the Manager of the competent Tax Office MUST FILE A TAX DECLARATION.

However, those who acquire income not exceeding 3,000 €, those who acquire income from salaries or pensions not exceeding 6,000 € and those whose income is calculated exclusively from audit evidence not exceeding 6,000 € are not obliged to file a tax declaration.

What income is taxable in Greece

All income either from Greek sources, or from foreign sources.

Negative income of the taxpayer occurring abroad is compensated only by positive income occurring abroad.

Taxation of spouses and minor children

Spouses file a common tax statement, in which tax is calculated individually for each spouse. In this case, the negative income of the one spouse is not set off with the income of the other spouse.

The income of minor children is added to the income of the parent with the highest income and is taxed in his name. If the parents have equal income, then the income of the child is added to the income of the father, who has to have custody of the child. If the parent does not have custody of the child, then the income of the child is added to the income of the other parent (custodian).  
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Tax Bracket Changes

The Tax Scale is one for all types of income. The non-taxable sum for all taxpayers is 12,000 €, upon condition of presentation of the appropriate number of receipts as explained further below.  

1) 2011 Fiscal Year Income Tax Scales

Taxpayer without Children   

Tax bracket in €

Tax rate %

Tax € per bracket Total income in € Total tax in €

12,000

0

0

12,000

0

4,000

18

720

16,000

720

6,000

24

1.440

22,000

2,160

4,000

26

1,040

26,000

3,200

6,000

32

1,920

32,000

5,120

8,000

36

2,880

40,000

8,000

20,000

38

7,600

60,000

15,600

40,000

40

16,000

100,000

31,600

Excess

45

 

   

Taxpayer with One Child    

Tax bracket in €

Tax rate  %

Tax € per bracket Total income in € Total tax in €

13,500

0

0

13,500

0

2,500

18

450

16,000

450

6,000

24

1.440

22,000

1,890

4,000

26

1,040

26,000

2,930

6,000

32

1,920

32,000

4,850

8,000

36

2,880

40,000

7,730

20,000

38

7,600

60,000

15,330

40,000

40

16,000

100,000

31,330

Excess

45

 

   

Taxpayer with Two Children    

Tax bracket in €

Tax rate  %

Tax € per bracket Total income in € Total tax in €

15,000

0

0

15,000

0

1,000

18

180

16,000

180

6,000

24

1.440

22,000

1,620

4,000

26

1,040

26,000

2,660

6,000

32

1,920

32,000

4,580

8,000

36

2,880

40,000

7,460

20,000

38

7,600

60,000

15,060

40,000

40

16,000

100,000

31,060

Excess

45

 

   

Taxpayer with Three Children    

Tax bracket in €

Tax rate  %

Tax € per bracket Total income in € Total tax in €

23,500

0

0

23,500

0

2,500

26

650

26,000

650

6,000

32

1,920

32,000

2,570

8,000

36

2,880

40,000

5,450

20,000

38

7,600

60,000

13,050

40,000

40

16,000

100,000

29,050

Excess

45

 

   

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2) No Tax Free Allowances

There will be no tax free allowances exemptions except for those pertaining to special sensitive  social groups (such as the handicapped with over 67% degree of handicap) but always connected to income-based criteria

3) No Separate Taxation

All income will be taxed by being added in one lump sum. There will be no separate taxation for separate classes of income, such as income from stocks or dividends.

4) Income will not be calculated by means of a coefficient, but according to the tax books

(taxi drivers, KTEL bus owners, rooms to let)

5) Taxation of dividends and added value of stocks

Dividends and gains distributed to individuals will be added to the taxable income.

6) Tax declarations will be filed by internet

Starting from the income of 2011 on, all tax declarations for those with a business or an independent profession will be filed by the internet, except for the declaration of people with salaries or pensioners, which can still be filed by manual means. 

7) Repatriation of capital from abroad

Capital deposited in bank accounts outside of Greece that will be transferred to a Greek bank account with a time deposit of one year in Greece are exempt from tax control if tax 5% is paid for them.

8) Transfer tax

The transfer tax percentage scale imposed on immovable property will also be imposed on transfer of stocks or shares of real estate businesses.

9) Adaptation of objective tax calculation rates

All tax objective tax calculation rates will be constantly modified so as to match the commercial prices of each property.

10) Immovable property taxes

Unified Immovable Property Tax (ETAK) will be abolished. Instead the Big Immovable Property Tax will be imposed, with a percentage as follows:

Immovable Property Value Tax percentage coefficient

Up to 400,000 €

0%

400,001 – 500,000 €

0,1%

500,001 – 600,000 €

0,3%

600,001 – 700,000 €

0,6%

700,001 – 800,000 €

0,9%

Above 800,000 €

1%

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What about receipts?

In order to gain the non-taxable income of 12,000 €, the taxpayer will need to produce receipts from the stores and services listed below. The receipts are connected with the non-taxable income as follows: 

The part of the non-taxable income required to be covered with receipts must equal 30% of the taxpayer’s total income for income exceeding 12,000 € or 10% of the taxpayer’s total income for income between 6,000 and 12,000 €. Those with income less than 6,000 € do not to file in receipts. 

The total value of the receipts submitted will be taken into consideration. If the receipts submitted will not cover for the non-taxable income, the difference up to 12,000 € will be taxed at 10%.  

If the taxpayer gathers receipts exceeding the aforementioned quota and receipt value of up to 15,000 € per individual taxpayer (30,000 € per family) there will be a tax reduction of 10% of the value exceeding the non-taxable income (that is, 300 € at the most). 

Those who file their tax declaration by email will keep the receipts at home and will only bring them to the Tax Office when asked to do so. All others will submit the receipts together with their tax declaration to the Tax Office in a sealed envelope with the name and tax no. of taxpayer, as well as the number of the receipts and their total amount. 

INCOME RECEIPTS REQUIRED   INCOME RECEIPTS REQUIRED
6,000 0   28,000 6,000
7,000 700   29,000 6,300
8,000 800   30,000 6,600
9,000 900   31,000 6,900
10,000 1,000   32,000 7,200
11,000 1,100   33,000 7,500
12,000 1,200   34,000 7,800
13,000 1,500   35,000 8,100
14,000 1,800   36,000 8,400
15,000 2,100   37,000 8,700
16,000 2,400   38,000 9,000
17,000 2,700   39,000 9,300
18,000 3,000   40,000 9,600
19,000 3,300   41,000 9,900
20,000 3,600   42,000 10,200
21,000 3,900   43,000 10,500
22,000 4,200   44,000 10,800
23,000 4,500   45,000 11,100
24,000 4,800   46,000 11,400
25,000 5,100   47,000 11,700
26,000 5,400   48,000 12,000
27,000 5,700   49,000 12,000
      50,000 12,000

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Receipts that are included in the 2011 scheme

1.   Super market, mini market, butcher, greengrocer  
2.   Gas stations (from when they will get cash machines)  
3.   “Kinohrista” (money paid for utilities of common areas of building not to be included)  
4.   Clothing – shoes  
5.   Furniture – electrical appliances – electronics  
6.   Hotels – rooms to let  
7.   Books – paper goods  
8.   Dance schools, music schools, swimming schools, martial arts schools  
9.   Restaurants, receptions, night clubs, cafes, pizza parlours, patisseries, food to go  
10. Gyms, hairdressers, slimming clubs  
11. Services by plumbers, electricians, painters, and all professionals having to do with the maintenance and repair of immovable property (as, for example, radiator and elevator maintenance)  

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Receipts already taken into consideration from previous years (that reduce either income or tax)

1. Medical fees (the whole amount is deducted from declared income)  
2. Hospital fees (20% of fee up to 6,000 € is deducted from tax)  
2. Attorney’s fees (up to 10% of income) 20% of fee is deducted from tax  
3. Loan Interest for home acquisition (depending on year of loan)

Loan Date

Deducted Interest

Deducted from

Until Dec 31st 1999

The entire amount of interest paid for first residence

Income

Jan 1st 2000 – Dec 31st 2002

Interest paid for the first 120 m2 of first residence

Income

From Jan 1st 2003

20% of interest paid for the first 120 m2 of first residence for a loan of up to 200,000 €

Tax

4. Rent of main residence (20% of fee is deducted from tax up to 240 €)  
5. Rent for children studying in Greece  
6. Life Insurance fees (20% of fee is deducted from tax up to 1,200 € for single taxpayers and up to 2,400 € for married taxpayers)  
7. Alimony given to spouses (20% of amount is deducted from tax up to 3,000
€)  
8. “Frontistiria” fees (20% of fee is deducted from tax up to 240 € for each child)  
9. Greek mutual fund acquisition fees bought in 2007 NOT SOLD FOR 3 YEARS

“Useless” receipts  

1. Utility company fees (for example, electricity, water, landline and mobile phone bills)  
2. Tickets of any means of transport (bus, train, airplane)  

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Audit Evidence

Expenses not considered because of being audit evidence

Property acquisitions

Acquisitions of motor vehicles and boats

Expenses for construction of a swimming pool

Maid salaries

Private school fees

Luxury goods acquisitions of a value of more than 5,000 €.  

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Audit evidence of residence depending on the surface

Surface m2

m2

Price/m2

Amount

Total m2

Total

Up to 80

80

30

2,400

80

2,400

81 to 120

40

50

2,000

120

4,400

121 to 200

80

80

6,400

200

10,800

201 to 300

100

150

15,000

300

25,800

301 upwards

 

300

 

 

 

Garages etc

 

30

 

 

 

 

PLEASE NOTE:

1. For houses which do not contain apartments (monokatoikies) the aforementioned amounts increase by 20%

2. For secondary residence (city home or vacation home) the aforementioned amounts decrease by 50%  

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Audit evidence of cars

Motor in cc

Up to 5 years old (2006 – 2010)

5 to 10 years old (2001-2005)

Over 10 years old

1,000

3,000

2,100

1,500

1,100

3,000

2,100

1,500

1,200

3,000

2,100

1,500

1,300

3,300

2,310

1,650

1,400

3,600

2,520

1,800

1,500

3,900

2,730

1,950

1,600

4,200

2,940

2,100

1,700

4,500

3,150

2,250

1,800

4,800

3,360

2,400

1,900

5,100

3,570

2,550

2,000

5,400

3,780

2,700

2,100

5,900

4,130

2,950

2,200

6,400

4,480

3,200

2,300

6,900

4,830

3,450

2,400

7,400

5,180

3,700

2,500

7,900

5,530

3,950

2,600

8,400

5,880

4,200

2,700

8,900

6,230

4,450

2,800

9,400

6,580

4,700

2,900

9,900

6,930

4,950

3,000

10,400

7,280

5,200

3,100

11,100

7,770

5,550

3,200

11,800

8,260

5,900

3,300

12,500

8,750

6,250

3,400

13,200

9,240

6,600

3,500

13,900

9,730

6,950

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To be filed with the INITIAL declaration:

1. Expenses for buying goods or obtaining services (receipts)

2. Life insurance premiums paid

3. Rent for the family’s main residence

4. Rent paid by family for children studying at university

5. Fees for private lessons and Frontistiria

6. All documents for audit evidence

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Double Taxation of Income

This means that income is taxed twice, both in the country where it is generated, as well as in the country of residence of the taxpayer. An Agreement for the Avoidance of Double Taxation of Income prevents double taxation either by imposing taxation in one of the two countries who sign the relevant agreement or by deducting the tax paid in one country from the tax to be paid in the other country.  

Countries which have an Agreement for the Avoidance of Double Taxation with Greece  

1)    Bosnia – Herzegovina                 

2)    U.S.A.                                         

3)    United Kingdom

4)    Tunisia                                        

5)    Austria                                        

6)    Estonia                                 

7)    Malta                                          

8)    Iceland                                       

9)    Russia                                         

10)  Turkey                                       

11)  Belgium

12)  Poland

13)  Kuwait

14)  China

15)  Latvia

16)  Mexico

17)  Lithuania

18)  Spain

19)  Italy

20)  Portugal

21)  Romania

22)  Czech Republic

23)  Norway

24)  Switzerland

25)  Hungary

26)  Uzbekistan

27)  Israel

28)  Croatia

29)  Korea

30)  Bulgaria

31)  Luxemburg

32)  Denmark

33)  India

34)  Sweden

35)  France

36)  Federal Republic of Germany

37)  Cyprus

38)  Finland

39)  Netherlands 

40)  Canada

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