Expatriate tax ebook - Greece

What taxes?

Capital gains tax
Inheritance, estate and gift taxes
Investment income
Local taxes
Real estate taxes
Social security taxes
Stock options
Wealth taxes
Other specific taxes

Capital gains tax
An expatriate's exposure to capital gains tax (CGT) will be determined by their Greek tax residence and domicile status. In general, capital gains tax will be assessed on net gains after deducting the cost of acquisition of the asset from sale proceeds. All chargeable capital gains are liable to Greek CGT at different rates subject to certain conditions.

Inheritance, estate & gift taxes
A liability to Greek inheritance and gift tax (capital acquisitions tax, CAT) depends on the individual's Greek tax residence and domicile position.
Where the asset concerned is considered to be a Greek asset, a charge to Greek CAT will arise.
 

Investment income
An expatriate's investment income is liable to Greek tax if it arises in Greece.

Local taxes
There are local taxes applied to an individual in Greece, mainly through electricity bills, water supply, refuse maintenance etc.

Real estate tax
The owners of Greek real estate are subject to real estate tax (RET) at a rate of 1‰ of the value of the real estate.

Social security taxes
Where duties are performed in Greece, generally a charge to Greek Social Security (IKA) will arise. An expatiate will be treated as an employee and subject to IKA and a health levy at 16%. The employer will also be required to contribute 28.06% of the relevant income and benefits to Greek IKA.

IKA must be collected at source along with payroll taxes.

Where the expatriate is coming from an EU jurisdiction and holds the relevant documentation, an exemption to Greek IKA will apply for one year plus one more year.
Where the expatriate is coming from a jurisdiction outside the EU with which Greece holds a bilateral agreement and the expatriate holds the relevant documentation, an exemption to Greek IKA will apply. Where the expatriate is transferring from a jurisdiction that does not fall into one of the above categories, the Greek rules will determine their liability.

Stock options
Stock options are considered as income from salary paid services and tax is charged at the moment that the expatriate exercises his rights. Stock options are considered as income from salary paid services in case they arise from capital increase but only for Greek listed Companies.

Wealth tax
There will be no wealth tax in Greece from 1 January 2009.

Other specific taxes
Stamp duties on loans and vehicle transfer taxes.

Information about Greece:

• introduction
• facts and figures
• basis of taxation
• what taxes?
• tax planning opportunities