Tax compliance in Greece

In Greece, the tax year corresponds to the calendar year and concludes either on June 30 for legal entities maintaining double-entry bookkeeping or on December 31. Under no circumstances can the taxable period extend beyond 12 months. An exception exists for Greek legal entities that are more than 50% owned, directly or indirectly, by foreign entities; these may close their accounting period on a date other than December 31 or June 30 solely for income tax purposes.

Tax Returns

In Greece, corporations, limited liability companies (LLCs), and branches of foreign entities must submit their corporate income tax (CIT) returns using a designated form by the end of the sixth month after their fiscal year concludes. These tax returns must be filed electronically. The CIT return serves as the foundation for direct tax assessment, which occurs automatically when the taxpayer submits their return, without any additional actions from the tax authorities. Taxpayers have the option to modify their returns by paying any additional taxes owed or by claiming a refund for overpaid taxes based on the revised return. Furthermore, if a taxpayer files an amended return after receiving an administrative tax assessment, they can request a corrective tax assessment from the tax administration, which is required to issue this correction if it accepts the amended return.

Income profits from business activtity

A. Income (profits) from business activity shall be taxed by the scale of employment and pensions income, after being added to any income from salaries and pensions.

Capital income (dividends, interest, royalties, real estate), which is taxed:
i. according to the following rates for income from dividends, interest, royalties, as applicable.

ii. according to the following scale for income from immovable property

B. Income from capital gains (stocks, shares or stakes in partnerships, government bonds and treasury bills or corporate bonds, financial derivatives) is taxed according to the following tax rate.

Taxpayers who do not have their tax residency in Greece are not entitled to tax reductions for employment and pensions income, unless: 
a) they maintain their tax residence in another EU or EEA member state and at least ninety percent (90%) of their worldwide income is Greek sourced, or
b) they prove that their taxable income is so low that they would be entitled to a tax reduction under the tax legislation of their state of residence (Article 20 of the ITC).

Alternative Taxation (5A, 5B, 5C)

The provisions of articles 5A, 5B and 5C of ITC, seek to attract individuals, non-residents, in order to transfer their tax residence to Greece.

• Under the provisions of Article 5A of the ITC, tax incentives are established in order to attract high-net-worth tax residents, with the aim of increasing public revenues, importing capital into Greece, creating unit trusts or participating in investment schemes or companies, as well as creating jobs, through the alternative taxation of their foreign-sourced income.  
• According to the provisions of Article 5B of the ITC, individuals-beneficiaries of a foreign pension are given the opportunity to transfer their tax residence to Greece and be subject to alternative taxation of their foreign-sourced income. 
• Finally, the provisions of Article 5C of the ITC complete the framework for attracting non-resident individuals in order to transfer their tax residence to Greece, through the establishment of a special taxation method for their income from employment and business activity arising in the country.

 Detailed information regarding the application of the above articles can be found on the following link: “Tax incentives to attract new tax residents, Articles 5A, 5B, 5C of Law 4172/2013 (ITC)”

Taxation of Greek sourced income obtained by non- Residents (PIT)

Taxpayers that do not have their tax residence in Greece are liable to tax on taxable income from Greek sources earned in a certain tax year (article 3 ITC). When a tax resident of another country receives income arising in Greece, and there is a Double Taxation Avoidance Agreement (DTA) in force between Greece and this other country, the income will be taxed according to the provisions of the DTA between Greece and this other country. DTAs that Greece has signed with other countries (in Greek, English or French) can be found on IAPR’s website.
Moreover, the taxpayer must present a tax residence certificate from his country of residence in order to have the provisions of the DTA applied. 

Taxation of non- Greek sourced income obtained by Greek tax residents (PIT)

Τaxpayers whose tax residence is in Greece are subject to tax on their worldwide income obtained within a certain tax year, i.e., on their taxable income obtained in Greece and abroad (Article 3 of the ITC). Foreign sourced income is any income that in not Greek sourced (Article 5 of the ITC). In cases where the foreign sourced income is obtained in a country with which Greece has concluded a Double Taxation Convention, which determines whether the income will be taxed in the source state, in in the state of tax residence of the individual who obtains it, or in both states, the provisions of the relevant Convention are applied, due to increased formal validity.

When a tax resident of Greece receives income arising in another country and there is a Double Taxation Avoidance Agreement (DTA) in force between Greece and this other country, the income will be taxed according to the provisions of the DTA between Greece and this other country. The taxpayer must present to the authorities of this other country a Greek tax residence certificate, obtained through myAADE digital portal here.

Foreign tax credit – Double taxation avoidance

For income of all categories (from employment and pensions, from business/agricultural activity, from capital, from capital gains), which was obtained abroad, by a Greek tax resident, the payable income tax (domestic), in respect of that income, is reduced by the amount of tax paid abroad for that income. The reduction of the income tax provided for income obtained abroad may not exceed the tax that would otherwise be attributable in Greece on this income (article 9 ITC). The limitation of the foreign tax credit up to the amount of the tax attributable to this income in Greece applies in any case where both the foreign country and Greece have the right to tax, whether it is foreseen on the basis of the DTA that both countries have the right to tax or there is no agreement with the source country of the income.

Tax advisory and tax compliance services in Greece – Accountwave

Fulfill your tax responsibilities and reporting requirements in Greece with our expert tax advisory and compliance services. We leverage our extensive expertise and adherence to best practices aligned with Greek regulations to ensure you meet all obligations, reduce tax-related risks, and enhance the efficiency of both your domestic and international operations. Our services encompass a wide range of areas, including corporate income tax (CIT), value-added tax (VAT), personal income tax (PIT), social security contributions, local taxes, withholding taxes, excise duties, and customs tariffs.

Tax registrations in Greece

• Ensuring the registration process in Greece with local authorities
• Registration for CIT, VAT and VAT refunds, including other taxes in Greece
• Assistance with any inquiries from the Greek tax offices and dispute resolution

Tax compliance and filings in Greece

• Preparation and submission of statutory tax returns
• Processing of tax liability payments to local authorities
• Other tax consultancies related to CIT, VAT, local taxes, withholding taxes, excise taxes and custom duties applicable in Greece
• Guidance and support by internal and external tax audits
• Representation in communication with the Greek tax offices and local authorities

Please feel free to address your request to our tax team.