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TAXES IN GREECE

To become a tax payer in Greece if a British passport holders wishing to stay in Greece for more than three months need to obtain a residence permit.  Application must be made in person within three months of the date of arrival in Greece.

Application should be made to the nearest police station.  The grant of residence permits and their renewal is entirely a matter for the Greek authorities and the Embassy or Consulates cannot support applications or intervene on behalf of the applicants. Since regulations concerning residence and employment are under review, you should check with your nearest Greek Consular office in Britain for up-to-date information.

RESIDENCE PERMIT REQUIREMENTS for employed persons and their family

As from 1 January 1988 nationals of the European Union are allowed to work in Greece without work permits.  However, residence permits ARE required.  Employment must be found within THREE months from the date of entry and all employees should apply for a residence permit at the nearest police station.

The following documents will be required when applying for the issue of a residence permit:


1) IN THE CASE OF THE WORKING PERSON

a) The passport on which the applicant entered Greece.

b) A statement by the applicant’s employer, duly certified by the local Labour Inspectorate, specifying nature and duration of the work to be done by the applicant.

(NB: The medical certificate, which had previously been required according to Article 12 of Presidential Decree No. 499 / 1987 has now been abolished according to the provisions of Presidential Decree No. 403 / 2001.)

2) IN THE CASE OF MEMBERS OF HIS/HER FAMILY

a) A document issued by the appropriate authority of the country of origin showing their relationship, i.e. marriage/birth certificates.

b) that the persons in question are supported by the applicant, or live under the same roof as he/she, in that country.

c) The documents at 1) a).

Every time employees change work they must report the change to the local Labour Inspectorate Office of the new employer’s area. Persons who are coming to Greece to work for THREE months only, should report this fact to the nearest Aliens Police or police station within 8 days of their date of arrival in Greece.

APPLYING FOR A TAX NUMBER

One of the first things  you should do when you decide to settle in Greece is register for a Tax number ( A.F.M. - pronounced Aa Fee Me). Your AFM number is required by the authorities for even the simplest things, such as opening a bank account (if applying for debit card)  or buying a car etc. The Tax Office (Eforia)  (in Chania-3,Tzanakaki St. 2nd floor)  is the place to do this. If you are buying land or property through an estate agent, or starting a business, your agent, lawyer or accountant can apply on your behalf for your tax number. Documents required are listed on the previous page. You will be issued a tax number the same day.

Once you have an AFM (Tax) number, you will  usually be required to submit  a yearly tax return in Greece, regardless of income. In all cases you should consult an accountant.

When buying property IN GREECE

It is  best  to open your own bank account in Greece, and declare all the money transfers through your own accountant in Greece (which you will eventually need anyway). The normal procedure is that you get a copy of the money transfer order and a pink slip from the bank in Greece for accounting purposes. Then pay anything in Greece from the Greek account. This makes it all much more transparent for the tax department, and for yourself than by transferring money into the agents account.

Sending money to an agent will be treated as revenue of the agent's, and not as "your" money which has already been taxed. If the agent pays for the property with "your" money in his account, actually he is buying, and not you. If the property is later transferred into your name, you may have to pay property transfer taxes again.

Please check with your bank, your agent and your solicitor before making any such payments. This is not legal advice.

INCOME TAX

Income tax is payable by all persons having income arising in Greece, regardless of nationality or place of residence.  The total income acquired in the immediately preceding financial year is subject to income tax after the deduction of allowances and exemptions provided for. There is a bilateral taxation convention between the United Kingdom and Greece whose object is to avoid double taxation and the prevention of fiscal evasion with respect of taxes on income, however, according to the Convention, persons are obliged to submit their tax declaration to the local tax authorities IN THEIR COUNTRY OF RESIDENCE irrespective of where his/her income arises. For example: a pensioner living in Greece on his/her U.K. pension must submit a declaration to the local Greek Tax Office. The Ministry of Finance will then, upon request, issue  certificate for use with the UK Tax Authorities stating that the pensioner in question has been taxed in Greece. More information can be obtained from the Board of Inland Revenue, Somerset House, London S.W.2.

Income Tax in any country around the world all persons have an obligation to pay incomes tax if you are unclear of you liabilities or if you are a pensioner contact a local branch of the Greek taxation authorities or Ministry of Finance. Or contact a tax consultant or an accountant in Greece, as law in Greece change with new regulations.

    Greece@greekpropertysociety.com