Income tax
Income taxation in Greece is progressive. Income tax is payable by all individuals earning income in Greece, regardless of citizenship or place of permanent residence. Permanent residents are taxed on their worldwide income in Greece. An individual in Greece is liable for tax on their income as an employee and on income as a self-employed person. In the case of an individual who is a ''permanent resident'' of Greece, their tax owed is calculated on their income earned in Greece and overseas. An individual whose income is only from a wage is not obligated to file an annual return. The employer deducts tax from the employee and transfers it to the tax authority every month. The 2014 tax rates are as follows: On May 9, 2016 a new set of emergency measures were voted in the Parliament by the SYRIZA/ANEL government. These changes include new income tax rates as well as new solidarity tax rates. The tax rates applicable to income earned in 2016 are as follows: The solidarity tax rates are progressive ranging from 2.2% to 10%. They are assigned as follows: But as 1 January 2020 the tax rate for the solidarity contribution will have been amended as in the table below:Social security tax
Employees
An employer is obligated to deduct tax at source from an employee and to make additional contributions to social security as in many other EU member states. The employer's contribution amounts to 24.56% of the salary. The employee's contribution is 15.5%.Self-employed or contractors
The basic social security contributions amount to the 27.1% of total income (after VAT paid, qualified expenses deducted and before income tax paid). This number can broken down to 20.0% for public pension funding and 7.1% for the public health system. An extra 7.0% is charged for people enlisted to added benefits public pension schemes. An extra 4.0% is charged for people enlisted to retirement bonuses public schemes. Thus the total contributions can go as high as 38.1% of income. Income range for calculation of Social security tax is 4,923 - 70,330 EUR per year. If annual income is out of the range above, the lower/higher limits respectively will be considered for calculation. Especially for agriculture professionals, the basic contribution of 27.1% will be lower until 2021, as follows: * 21.1% in 2017 * 23.1% in 2018 * 25.1% in 2019 * 26.1% in 2020 * 26.6% in 2021 * 27.1% in 2022+ Especially for doctors, pharmacists, engineers, lawyers and economists, the total contribution of 27.1-38.1% will be 5-50% lower until 31/12/2020, as follows: * For total income 0–7,000 EUR 0% lower * For total income 7,000-13,000 EUR 50% lower * For total income 13,000-14,000 EUR 49% lower * For total income 14,000-15,000 EUR 48% lower * For total income 56,000-57,000 EUR 6% lower * For total income 57,000-58,000 EUR 5% lower * For total income 58,000+ 0% lowerCorporation tax
Corporations in Greece are taxed on their income in Greece and from overseas. Foreign companies in Greece are taxed only on income that is generated in Greece. Also, there is 100% advance payment of the taxable amount of the current fiscal year, and is being balanced by each next fiscal year financial data. Corporate income tax rates by year: * 2007, 2008, 2009 - 25% * 2010 - 24% * 2011, 2012 - 20% * 2013, 2014 - 26% * 2015 - 29% * 2019 - 28% The corporate income tax rate is to be gradually reduced as follows:Capital gains tax
A capital gain in Greece is added to regular income and is taxable at the same rate as regular income for a company, other than in specific instances as defined in law. A capital gain by an individual in Greece is taxable at the rate of 15%. There is no tax in the case of capital gain from trading in the stock market as long as the individual owns less than 0.5% of the publicly listed company.Withholding tax
As of 1 Jan 2009, Greece imposes aValue added tax
Value added tax ( VAT) was implemented in to the Greek taxation system in 1987 in order to replaceOther taxes
Real property tax
The Real property tax is levied on property, that is located in Greece. The tax composes of two parts, the main tax and the additional tax. The value of the main tax depends on the size, location, zone price, surface, age, use and other characteristics of the taxed property. The additional tax is derived from the total tax value of all the taxpayer's property and it ranges from 0.15% to 1.15% depending on the total value of the property. The additional tax is in effect, if the total value of the taxed property exceeds €250,000.Inheritance tax
The Inheritance tax is different for close relatives of the deceased and for other heirs. The former ranges from 1% to 10% of the "tax value" after the deduction of a tax-free amount, depending on the relationship of the taxpayer with the testator. For other heirs, the inheritance tax rate ranges from 0% to 40% of the tax value.Tax exemptions
There are several cases ofTax deductions
The examples of Tax deductibility in Greece are, as with most other features of Greek taxation, similar to that of other Western European and North American nations, that is, tax deductibility for things such as charity and other things as shown below: *15% credit on a mortgage for the first residential apartment. *15% rent paid on the main residential apartment up to maximum. *Donations to public, religious and other institutions. *Compulsory payments to social security.Payments
* Social security tax is paid 12 times a year. * VAT tax is paid 3 times a year. * Income tax is paid once a year.See also
* Tax evasion and corruption in GreeceReferences
{{Taxation in Europe