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Greece - Overview and introduction

Greece - Overview and introduction

Taxation of international executives

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Greek residents are liable to income tax on their worldwide income, whether remitted to Greece or not. Where tax has already been paid outside Greece on non-Greek source income, it may be deducted up to the amount of tax payable in Greece on the same income. Non-Greek residents are taxed only on Greek-source income.

The legal provisions designed to prevent tax evasion specify that individuals filing a tax return in Greece are taxed on the higher of their declared income or imputed income. Income is imputed on the basis of living expenditure or acquisition of certain assets. The main factors considered in imputing income from living expenses or acquisitions are:

  • Imputed income on the basis of living expenditure: 
    • The engine size of owned motor vehicles
    • The deemed rental payments for a secondary residence or more than one secondary residencies, as well as primary residence (by reference to the residence’s surface)
    • The maintenance, and use of a swimming pool (outdoor/indoor by reference to the pool’s surface)
    • Other factors, such as the annual expense of the tuition fees or housekeeping staff (terms apply).
    • payments to insurance investment contracts (only for the portion which is considered as investment product)
  • Imputed income on the basis of acquisition of certain assets
    • The repayment of loans
    • The purchase of real estate
    • The construction, acquisition, or leasing of buildings,
    • Acquisition or leasing of other assets, such as motor cars or pleasure boats
    • The construction , maintenance, and use of a swimming pool (outdoor/indoor by reference to the pool’s surface)
    • Amounts donated to individuals including monetary parental donations
    • Purchase of market shares and other tiles, contributions made for the purchase of business or contributions for capital increase etc.

In case of non-Greek tax residents, the imputed income on the basis of living expenditure does not apply. However the imputed income on the basis of acquisition of certain assets applies on the condition that the individual earns actual Greek source income, regardless of whether it is taxed (i.e. subject to tax scale, at source etc.) or is tax exempt.

Under certain circumstances, taxpayers have the right to contest imputed income assessed on the basis of their lifestyle by providing evidence that the difference between the imputed income and the declared income is covered by borrowing or savings that have been taxed or exempted from tax in the past, or gifts, which have been subject to or exempt from gift tax, or income taxed abroad (or exempted), and imported to Greece etc. The same obligation arises for civil unions/ partnerships (for both opposite sex or same sex couples).

Married persons are subject to tax separately on their own income but are required to file a joint tax return unless 28 February of the year following the year for which tax return is to be filed. If such Declaration is not filed by both or one of the spouses joint filing will take place and no further amendment is possible for the tax year filing in question. Civil unions/ partnerships (for both opposite sex or same sex couples) may as well file joint declaration by notifying the Registry Department of their competent tax office. No instruction by the Greek State has yet been provided for civil unions/ partnerships previously filing joint tax return but deciding to file separately in the future.

The official Greece currency is the Euro (EUR).

Herein, the host country/territory refers to the country/territory where the expatriate is going on assignment. The home country/territory refers to the country/territory where the expatriate lives when they are not on assignment.

© 2020 KPMG KPMG Advisors Single Member S.A., a Greece Corporation and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

KPMG International Cooperative (“KPMG International”) is a Swiss entity.  Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

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