13% and 6.5%. The reduced rate of 13% indicatively applies to food products, pharmaceuticals, medical equipment and ancillary goods, transportation of persons, etc. The low rate of 6.5% applies to books and printed material as well as entries to theatres etc.
Other consumption taxes
Real Estate transfer Tax, Real Estate Tax, Inheritance and gift tax.
Corporate taxes
Tax rate
Corporate tax rate
20%
Tax rate for foreign companies
ome tax on their worldwide annual income. Foreign entities are taxable in Greece only on their Greek-source income. In addition, where such entities maintain a “permanent establishment” in Greece, they are taxed on income attributed there too. Generally, corporations’ gross income is reduced by their allowable expenses for the purpose of arriving at their net income. The tax rate applies on corporations’ net income.
Capital gains taxation
A capital gain in Greece is added to regular income and is taxable at the same rate as regular income for a company: 24%
Main allowable deductions and tax credit
There is no exhaustive listing of deductible business expenses in Greek tax law. In principle, all business expenses are deductible to the extent they fulfill the criteria set by the law. For more information consult Deloitte Tax Guide.
Other corporate taxes
Capital gains Taxation, Real Estate Transfer Tax, Real Estate transfert Duty, etc.
Individual taxes
Tax rate
Income tax
Progressive rate from 0% to 45%
For the first EUR 12,000
0%
From EUR 12,001 to EUR 16,000
18%
from EUR 16,001 to EUR 22,000
24%
from EUR 22,001 to EUR 26,000
26%
from EUR 26,001 to EUR 32,000
32%
from EUR 32,001 to EUR 40,000
36%
from EUR 40,001 to EUR 60,000
38%
from EUR 60,001 to EUR 100,000
40%
Over 100,001
45%
Allowable deductions and tax credit
in respect of his principal residence, up to 1100 EUR, - 20% of the expense incurred for private lessons delivered to the taxpayer and/or his/her spouse and/or their children either at home or in private institutions, including foreign language courses up to 1100 EUR, - 20% of the interest paid on mortgage-loans or loans guaranteed by means of a mortgage pre-note entered into by the taxpayer for the purpose of purchasing his/her first-ever private residence not exceeding 120 square meters, - 20% of the total annual amount of medical and hospitalization expenses incurred by the taxpayer for the purpose of his/her own or his/her dependants’ treatment; the overall amount to be allowed cannot, however, exceed 6000 EUR.
For additional information, you can consult the PKF Tax Guide.
Special expatriate tax regime
Individuals not resident in Greece are taxed only on their income derived from a source therein.Foreign tax residents who generate income in Greece are taxed on the basis of the abovementioned progressive tax scale; however, they receive no relief in the first bracket of income, which is taxed at 5%.
Double taxation treaties
Countries with whom a double taxation treaty have been signed
The tax year begins on 1 January and finishes on 31 December of the same year.
Accounting standards
Community accounting legislation is mainly based on two Directives « Company Law »: the fourth directive (78/660/CEE) which obliges all limited liability companies to draw up annual accounts; its aim is not to achieve complete harmonization of accounting rules but rather to ensure better comparison of financial information; the seventh directive (83/149/CEE) which obliges parent companies to prepare consolidated accounts and a consolidated annual report which detail the financial situation of the group.
Rules for evaluating the accounts which appear in the annual accounts are founded on principles such as the principle of caution, the principle of the invariability of methods of evaluation, etc.
The annual report must contain a faithful presentation of the evolution of business and the situation of the company. In addition, it must contain information about the important events which have occurred since the closing of the financial year, the foreseeable evolution of the company and the company’s research and development activities.
Publication requirements
Every year companies are bound to publish a financial statement including a balance sheet, an annual report, a table of profit distribution and notes. It must be audited, sent to the register of public limited companies and published in the official government journal.
In addition, the European Directive of 19 July 2002 obliges all European companies listed on the Stock Exchange to draw up, starting with the 2005 financial year, their consolidated annual accounts on the basis of IAS standards. Concretely, the company councils of Greek listed firms and consolidated Greek subsidiaries of listed Greek firms or listed firms under the jurisdiction of the law of another member State have been confronted systematically, since 2006, with consolidated accounts drawn up in compliance with IAS/IFRS standards and which are therefore different in their form and content from those which had been sent to them up to now.
We can indicate you which 