Taxes in Greece can be difficult to wrap your head around if you’re planning on living and working there. It can be extremely difficult when you first move here, because there will be a lot of paperwork, legal documents and tax legislation are in Greek and can be challenging to translate.

To get in touch with a qualified, English-speaking accountant, please book a free 30-minute consultation call or email us at info@mygreekexpatjourney.com.

The Three Types of Taxes for Greek Residents

There are three types of taxation are:

1. Income Taxes

These are taxes paid by entities and private individuals. The types of income that are taxable in Greece include sources of income via employment, or profession and investments. employers are required to subtract the appropriate tax and national insurance sums from their employees' monthly earnings. With regards to social security, the employer's share amounts to 25.06% of the salary, while the employee contributes 16%.

Alternatively, if you are self-employed in Greece, you're responsible for making preemptive payments towards your individual income tax, which will be reconciled in an annual report. Furthermore, as a self-employed individual, you'll personally cover your social security fees. More on this on our EFKA page here. If you are self-employed, on the other hand, you must file taxes 5 times a year, at the end of each quarter and the end of the year.

2. Capital or Property Taxes

If you own property in Greece, you must pay tax. Anything that concerns the ownership of real estate or inheritance of property, you have an obligation to pay taxes.

You must also pay tax if you are currently engaging in these activities:

• If you own a car, a motorcycle, a boat, or an aircraft in Greece
• If you are a partner in a limited company in Greece
• If you are buying or constructing a building in Greece
• If you earn an income by renting a property or land in Greece
• If you own a swimming pool bigger than 25 m2 in Greece

3. VAT (Value Added Tax)

As a citizen in Greece, you must also pay VAT, which is tax on the prices of services and products in the country. Consumption taxes also include transferring house ownership to registering a car or paying a special duty for a cell phone service.

When you earn a higher income, you will pay more taxes, given that the income tax rate will increase. In this regard, it is important to know what taxes to pay and how much, in order to avoid any penalties or large fines from the government.

Income Tax Rates in Greece

Tax Incentives

1. 50% Tax Break: Depending on eligibility, a new tax regime was introduced since the beginning of 2021, which enables foreign individuals to benefit from a 50% tax break on their annual Greek salary or business income over a period of seven years following their relocation. See if you're eligible here.
2. 7% Pension Tax: Under the new legislation effective since July 31, 2020, retirees in Greece pay a flat rate of 7% tax on foreign-sourced income annually. See if you're eligible here.
3. Additional Tax Advantages for Investors: Greece has a 0% capital gains tax and a 5% dividend tax on investments.

‍If you have any questions regarding taxes in Greece, you can request a tax consultation here with one of our professionals.