Page 23 - CEE Tax Guide 2024

Greece VAT options in Applicable / limits Personal income tax / Social security system
Greece Pursuant to domestic tax law, as taxable employment
income is considered to be any remuneration received
Distance selling EUR 10,000/year by an employee within an employment context including

Call-off stock ü benefits in cash or in-kind, such as the private use
Mazars Accounting Tax VAT group registration No of a company car, a cost-of-living allowance and other
Single Member P.C. benefits over EUR 300 per fiscal year. In Greece, personal
14 Amfitheas Ave, 17564, Cash accounting – yearly Optional for small companies with income tax is subject to a progressive tax rate ranging
Palaio Faliro, Athens – Greece amount in EUR (approx.) a turnover of up to 2m. from 9% to 44%. Additionally, tax payable on employment
Phone: +30 2106993749 Import VAT deferment ü income is reduced by a family tax allowance from EUR 777
Fax: +30 2106983708 B2B sales for laptops, tablets, cell to EUR 1,780 under certain conditions. For individuals, real
www.mazars.gr Local reverse charge phones, and game consoles under estate income is taxed at a progressive rate of 15% to 45%.
conditions.
Option for taxation Active incomes fall under the scope of the SSC system.
The vast majority of Greek employees have been covered
letting of real estate Optional on business rentals. by the Social Insurance Institution known as E.F.K.A.
Corporate taxes and other direct taxes and thin cap interests, to the extent that they are over supply of used real estate No since January 1, 2017. Social security contributions are
30% of EBITDA and EUR 3 million. Greek corporations calculated based on the actual salary of the employee.
A flat corporate income tax rate of 22% is applied are also subject to annual business tax up to EUR 1,000, Not applicable for taxable persons. The applicable rates for full time employees are 22.29%
to resident corporations for fiscal years 2021 onwards. irrespective of their profitability. Greek companies However, small businesses with for employers and 13.87% for employees. For part-
a turnover up to EUR 10,000 may
Non-resident corporations are taxed in Greece on any are subject to tax prepayment equal to 80% of the tax VAT registration be exempted from VAT registration. timers, the rates are also the same effective as of January
income generated in Greece. The relative tax rate applies corresponding to the revenues of the tax year for which threshold Also, the threshold is set at EUR 1, 2023. Social security grants benefits in the case
after the deduction of business costs, depreciations, the return is filed. For newly established companies, the 10,000 for pan-EU digital services of unemployment, sickness, disability, retirement, and
and provisions for bad debts. Major tax adjustments prepayment is reduced to 50% for the first three years and goods as a part of OSS return. death. For calculation purposes, the upper limit of social
and non-deductible items include payments out of the of operations. security contributions is defined as a gross salary
banking system, transfer pricing adjustments, personal As of January 1, 2021, the withholding tax rate for As for other indirect taxes, Greece applies a flat stamp duty of EUR 7,373.53.
consumption expenditure, bad debts without legal actions, dividends distribution is reduced to 5% for both individuals rate of 1.2%, 2.4%, or 3.6% to certain transactions outside
payments to low tax rate jurisdictions, non-paid SSC, the scope of VAT, such as non-residential rents, loans, etc.
and the shareholders of legal entities. Interest payment
is subject to a tax rate of 15% and the corresponding rate
Transfer pricing in Greece for royalties is 20%. Greece has incorporated 57 treaties
on the avoidance of double taxation. If a DTT is applicable,
Arm's length principle ü Since 1994 the above-listed rates can be reduced. With the adoption
Documentation liability ü Since 2008 of the EU Parent Subsidiary Directive, under certain
conditions there is no withholding tax on dividends,
APA ü Since 2014 interests, and royalties paid on EU (including Greece)
Country-by-Country Since 2016 intragroup transactions.
liability ü
Master file-local file A real estate property tax applies in cases of immovable Wage related taxes in Greece Minimum wage Average wage
(OECD BEPS 13) ü Since 2015 property ownership, while legal entities holding real estate in private sector
applicable located in Greece may be additionally charged with the in EUR in EUR
Penalty 15% Special Estate Tax imposed on the objective value 780 1,445
1% of TP transactions (EUR of the property if the beneficial owner or the individual
500–2,000) for inaccuracy/ shareholder is not known to the Greek authorities. A list Total wage cost* 954 122% 1,767 122%
incompleteness. The penalty of exemptions is provided under certain conditions.
is imposed for the late Employer's social security contribution** 174 22.29% 322 22.29%
submission of the Summary Capital gains from shares and immovable property are
lack of documentation ü Information Table only taxed as normal business profits (22%) for corporations Gross salary 780 100% 1,445 100%
when the total amount and at a flat rate of 15% for individuals. For individuals, the Personal income tax*** - - 74 9%/22%/28%/36%/44%
of transactions to be verified 15% for capital gains arising from the sale of immovable Special Solidarity Contribution ****
is altered and the difference property has been postponed until December 31, 2024.
> EUR 200,000. Employees' contributions 108 13.87% 200 13.87%
For non-submission, a fine VAT and other indirect taxes Net salary 672 86% 1,171 81%
of 1% of TP transactions
(min EUR 2,500, The standard VAT rate in Greece is 24%, while the reduced * Per payroll period (there are 14 payroll periods per year).
max. EUR 10,000) ** Most common social security contributions rate (for full timers) regarding usual employment properties.
tax shortage ü is applied. A penalty rate is 13% (e.g. for agricultural services, accommodation *** A tax reduction is provided for the taxpayer based on the number of dependents in conjunction with the total taxable income.
up to EUR 20,000 can services, certain types of foodstuffs) and 6% (e.g. journals, **** Not applicable for 2024.
be imposed for a missing books, medicines, supply of electricity and gas). VAT-
documentation file. exempt activities include financial and banking services,
Direct or indirect insurance, medical services, and education (subject
control or management
Related parties > 33% to certain conditions). Pursuant to the provisions of Art.
dependence, or exercise 53 par. of Law 5073/2023, reduced VAT rates were Nikolaos Kasouridis
of decisive influence. expanded to several products and services (non-alcohol Tax Partner
Safe harbors No – beverages) until June 2024. Regarding cinema tickets Phone: +30 210 6993749
Level of attention paid by Tax and the transportation of individuals and their luggage, Mobile: +30 6937050114
Authority 10/10 reduced VAT rates were expanded without time limitation. E-mail: nikos.kasouridis@mazars.gr

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