Greece Strategy: All About Taxes in Greece

Immigrating to Greece, besides purchasing Greek properties, another major concern is taxes. Like most EU member states, employers in Greece are required to withhold taxes from employees and supplement a portion of the tax payments themselves, contributing to social security taxes. The proportion borne by the employer is 28.06% of the salary, and the proportion borne by the employee is 16%.

Tax Exemptions

Greece provides tax exemptions for the following income:

Gains from shares traded on the Athens Stock Exchange

Income from ships and shipping transport

Dividends from Greek companies

Asset gains from business transfers between family members as stipulated by law

Tax Reductions

Greece provides tax reductions for the following income:

A 15% tax reduction on mortgages for primary residences

Rental tax for primary residences can be reduced by up to 15%

Donations to public utilities, religious, and other organizations

Mandatory social security taxes

Corporate Tax

Foreign companies are only taxed on profits earned within Greece.

At the beginning of 2007, the corporate income tax was 25%. From 2010, the corporate income tax decreased by 1% each year, becoming 20% by 2015.

Capital Gains Tax

Except as otherwise provided by law, capital profits in Greece are taxed uniformly under corporate income tax.

Withholding Income Tax

Starting from January 2009, Greece imposed a 10% withholding income tax on corporate dividends, unless the dividends are subject to the "EU Parent-Subsidiary Directive" or can enjoy a lower tax standard according to bilateral tax treaties.

Withholding income tax also applies to interest and royalties, unless bilateral tax treaties provide for reductions or exemptions, or the fees are subject to the "EU Interest and Royalties Directive."

Value-Added Tax (VAT)

The VAT range in Greece is 4.5%-23%. Goods not belonging to any special category are subject to a 23% VAT. Category 1 goods are subject to a 13% VAT, and Category 2 goods are subject to a 4.5% VAT. On some Greek islands, the VAT for Category 1 goods can be reduced to 13%.