Expatriate tax ebook - Greece

What taxes?

Capital gains tax
Inheritance, estate and gift taxes
Investment income
Local taxes
Real estate taxes
Social security taxes
Stock options
Wealth taxes
Other specific taxes

Capital gains tax
An expatriate's exposure to capital gains tax (CGT) will be determined by their Greek tax residence and domicile status. In general, capital gains tax will be assessed on net gains after deducting the cost of acquisition of the asset from sale proceeds. All chargeable capital gains are liable to Greek CGT at different rates subject to certain conditions.

Inheritance, estate & gift taxes
A liability to Greek inheritance and gift tax (capital acquisitions tax, CAT) depends on the individual's Greek tax residence and domicile position.
Where the asset concerned is considered to be a Greek asset, a charge to Greek CAT will arise.

For brevity sake, we present for the first degree relatives* of a tax payer according the table below:

*Husband/Wife, Parents (and Grand), Children(and Grand)

Inheritance estate and gift taxes

Established special tax free for Inheritance € 300.000 for husband or wife alive (after 5 years marriage) and his/her minor children.

Non typical cash gift is taxable with tax rate 10% (outside of the abovementioned framework).

Investment income
An expatriate's investment income is liable to Greek tax if it arises in Greece.

Local taxes
There are local taxes applied to an individual in Greece, mainly through electricity bills, water supply, refuse maintenance etc.

Real estate tax

Individuals’ Real Estate Tax Scale Fiscal Year 2010 & afterwards

* Over 2% should be applicable only for fiscal years 2010-2012.

Corporate Real Estate Tax

Real estate for companies is being taxable as following:

General Corporate tax on Companies’ Property 0,6%.

For Nonprofit fiscal entities 0,3%.

Property Owner-Occupancy 0,1%.

Social security taxes
Where duties are performed in Greece, generally a charge to Greek Social Security (IKA) will arise. Expatiate will be treated as an employee and subject to IKA and Health Levy at 16%. The employer will also be required to contribute 28.06% of the relevant income and benefits to Greek IKA.

IKA must be collected at source along with payroll taxes.

Where the expatriate is coming from an EU jurisdiction and holds the relevant documentation, an exemption to Greek IKA will apply for one year plus one more year.

Where the expatriate is coming from a jurisdiction outside the EU with which Greece holds a bilateral agreement then the expatriate is subjected to Greek IKA.Where duties are performed in Greece, generally a charge to Greek Social Security (IKA) will arise. An expatiate will be treated as an employee and subject to IKA and a health levy at 16%. The employer will also be required to contribute 28.06% of the relevant income and benefits to Greek IKA.

IKA must be collected at source along with payroll taxes.

Where the expatriate is coming from an EU jurisdiction and holds the relevant documentation, an exemption to Greek IKA will apply for one year plus one more year.
Where the expatriate is coming from a jurisdiction outside the EU with which Greece holds a bilateral agreement and the expatriate holds the relevant documentation, an exemption to Greek IKA will apply. Where the expatriate is transferring from a jurisdiction that does not fall into one of the above categories, the Greek rules will determine their liability.

Stock options
Stock options are considered as income from salary paid services and the tax is charged at the moment that the expatriate enjoys his rights.

Wealth tax
There is no wealth tax in Greece.

Other specific taxes
Stamp duties on loans and vehicle transfer taxes.

Information about Greece:

• introduction
• facts and figures
• basis of taxation
• what taxes?
• tax planning opportunities