Tax laws Greece
Greece's tax system encompasses various taxes, including income tax, corporate tax, and value-added tax (VAT), among others. Here's an overview:
Personal Income Tax:
Greece employs a progressive tax system for personal income, with rates increasing based on income brackets. As of recent data, the tax rates are as follows:
Up to €10,000: 9%
€10,001 – €20,000: 22%
€20,001 – €30,000: 28%
€30,001 – €40,000: 36%
Over €40,000: 44%
Additionally, a "solidarity tax" applies to incomes exceeding €12,000, with rates ranging from 2.2% to 10%, depending on the income level. Social security contributions are also mandatory, with employees contributing approximately 15.75% and employers 24.81% of gross salaries.
Corporate Tax:
The corporate income tax rate in Greece is set at 24%. This rate applies uniformly to both domestic and foreign companies operating within the country.
Value-Added Tax (VAT):
Greece's VAT system comprises three rates:
Standard Rate: 24%
Reduced Rate: 13% (applicable to certain food items, medical supplies, and tourism services)
Super Reduced Rate: 6% (applies to specific goods and services, such as books and theater tickets)
These rates were implemented to comply with the European Union's VAT directives. citeturn0search11
Recent Tax Developments:
In response to economic challenges and to promote fiscal stability, Greece has introduced several tax measures:
Excess Profits Tax: To address soaring energy prices, Greece imposed a 90% excess profits tax on energy companies in November 2022. The revenue from this tax is utilized to subsidize energy prices for consumers. citeturn0search13
Tourism-Related Taxes: To combat overtourism and its environmental impacts, Greece plans to introduce a €20 fee for each cruise passenger disembarking in popular destinations like Santorini and Mykonos during peak summer months. This measure aims to manage the high influx of tourists and preserve local infrastructure. citeturn0news18
Green Taxes: Discussions are underway regarding the implementation of environmental taxes to promote sustainability. However, concerns have been raised about the transparency and allocation of these funds. citeturn0news20
Tax Incentives:
To attract foreign investment and residents, Greece offers favorable tax regimes:
- Non-Domiciled (Non-Dom) Tax Regime: Individuals who transfer their tax residence to Greece can benefit from a flat tax rate on global income, provided they invest a specified amount in the country. This regime has made Greece an attractive destination for high-net-worth individuals seeking tax advantages. citeturn0news17
It's essential to note that tax laws are subject to change, and while this overview provides a general understanding, consulting official Greek tax authorities or professional tax advisors is recommended for the most current and personalized information.
RELATED Blog
0 comments