Taxation of international executives
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:
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 a declaration is filed by 28 February of the year following the tax year for which tax return is to be filed requesting separate filing (e.g. by 28 February 2020 requesting to file separately for tax year 2019 which is due by 20 June 2020) . 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.
The official Greece currency is the Euro (EUR).
Herein, the host country/jurisdiction refers to the country/jurisdiction where the expatriate is going to on assignment. The home country/jurisdiction refers to the country/jurisdiction where the expatriate lives when they are not on assignment.
A global survey of income tax, social security tax rates and tax legislation impacting expatriate employees.
All information contained in this publication is summarized by KPMG Advisors Single Member S.A., the Greek member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity, based on the Greek income tax laws 2961/2001, 3091/2002, the Greek Income Tax Code 4172/2013 and subsequent amendments, the Greek Tax Procedure Code 4174/2013 and subsequent amendments, 4223/2013, 4251/2014, 4254/2014, 4307/2014, 4308/2014, 4312/2014, 4313/2014 and 4316/2014, 4330/2015, 4334/2015, 4337/2015, 4354/2015, 4387/2016, 4389/2016, 4438/2016, 4446/2016, 4447/2016, 4484/2017, 4490/2017, 4579/2018, 4583/2018, 4571/2018, 4549/2018, 4512/2018, 4646/2019, the website of the Independent Authority for Public Revenues (IAPR) in Greece.
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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.