Topic 3 Key players in the taxation system
The Greek tax system appears to be rather simple at first. In contrast to some other nations, taxation starts as soon as you earn your first euro. Greece has a graduated tax system.
Many foreigners who come to Greece to work and reside may find the tax system to be overly confusing.
Greek tax regulations can be complicated and accompanied by a lot of paperwork for non-residents.
It is crucial to understand if you are a Greek tax resident or not. It alters how you report your income and make tax payments.
People who have been in Greece for at least 183 days are considered tax residents. Only your individual income in Greece is liable to taxation if you are not a resident of the country.
- possess a home in Greece permanently or
- have stayed in Greece for more than 183 days in any one year, or
- are working or engaging in a profession in Greece, or
- own a company or invested funds in Greece, or
- having a yearly salary of more than €3,000 (from salaries, self-employment, pensions, alimony, or agricultural activities.)
- Corporations and private citizens both pay income taxes
- VAT and stamp duty are examples of consumption taxes. All taxes on various transactions, such as the sale of a home, the registration of a vehicle, or the payment of a particular tax for a cell phone service, belong here.
- Real estate and inherited property are both subject to capital or property taxes
A third-country national may enter Greece for employment, under a dependent-employment relation, with a specific employer and for a specific type of employment, provided that he has been issued with a relevant visa. A Greek national visa offers employment rights to TCNs.
Within 90 days Ukrainian refugees will be provided by the Asylum Service of the Ministry of Immigration and Asylum with temporary protection of one (1) year with the right of access to the labor market and medical care in accordance with Directive 2001/55 of the Council of the European Union.
Your entire personal income is taxable in Greece. The country has progressive income tax rates that can reach 44%. It implies that their levels rise in line with your income.
Your salary, pension, or business gains can all be considered as sources of personal income.
The income tax rate is 9% for anyone making less than 10.000 €.
The income tax rate is 22% if you earn between 10.000 and 20.000 €.
The income tax rate is 28% if you earn between 20.000 and 30.000 €.
The income tax rate is 36% for those who make between 30.000 and 40.000 €.
Taxes on earnings over 40.000 € are incredibly high—44%!
The Hellenic Republic’s Independent Public Revenue Authority (ΑΑΔΕ) is an independent administrative body in charge of certifying and collecting public funds, safeguarding public health, and issuing directives and suggestions for the enhancement of the tax system.
It is not subject to the Ministry of Finance’s oversight, but rather that of the Hellenic Parliament. The President and four other members make up the five-member Council, which has a Governor as its head. The Expert is another option, and they serve as advisors.
The AADE’s Public Financial Service (ΔΟΥ), also known as the tax office informally, handles the financial dealings of both natural and legal persons with the state. The Public Financial Service for the Taxation of Public Limited Corporations (ΔΟΥ-ΦΑE) is responsible for taxing public limited companies.
Every natural person is required to file a tax return (form E1) if he or she is a resident of Greece, has reached the age of 18, is not a dependent, and has real or imputed income.
In any case, taxpayers who have started a business must file an income tax return.
Non-residents are only required to file a return if they earn real income that is taxable in some way (e.g., on a graduated or self-assessed basis) or is exempt from taxation in Greece.
The return must include all income, regardless of how it is taxed, as well as exempt income.
In every case of withholding tax, including self-taxed or special taxable income, the tax withheld or deducted is the same.
Only electronically submitted tax returns are accepted. Except for returns of deceased persons and minor children with an E3 filing obligation, which must be filed on paper with the appropriate tax office.
Taxpayers who do not have passwords must register for the myAADE certification services online. An authorised accountant can also submit a taxpayer’s return electronically if they do not have passwords.
In this case, the authorisation to the tax adviser – accountant – accountancy firm concerns the management of forms E1, E2, and E3 and is completed online in the taxpayer’s account authorisation management application, via the AADE’s digital portal.