Employment income
Greek tax residents are taxed on their worldwide income irrespective of the country where such income has been generated, paid, or remitted.
Non-resident aliens are taxed on salary earned for work performed in Greece, regardless of where payment is made and regardless of where it is remitted. They are not taxed to the extent their compensation relates to services performed outside of Greece.
All fringe benefits are normally considered taxable income for the employee and hence treated as such.
Board of Directors fees/remunerations paid to Board Members are considered as salaried income and are taxed based on the respective income tax scale for salaried services.
Equity compensation
New provisions for stock option plans (SOPs) and free shares
Pursuant to the Law 4646/2019, recently amended by the Law 4714/2020, significant changes regarding the tax treatment of SOPs were introduced as of 1 January 2020 and onwards.
In particular, benefit arising from SOPs shall be exempt from salaried income taxation and will be taxed at the time of their sale as capital gains at a rate of 15%, provided they are held for at least 24 months. Should the SOPs not be held for at least 24 months, the relative income will continue to be taxed as per the preceding provisions of the law. In case SOPs relate to small start-up entities, they are taxed at a rate of 5%, provided that they are held for at least 36 months, under conditions.
Moreover, the favourable tax treatment with the taxation of 15% applies for free shares (not provided at discounted price but provided for free) to the extent that they are inextricably linked with the achievement of specific required performance milestones or the occurrence of an event (e.g. completion of a specific employment period). According to the new Law, the taxable event arises at the time the free shares are actually sold and not at the time of their acquisition as happened before. In addition, for free shares there is no retention period.
Notional income
The cost of acquiring or maintaining certain assets (e.g. ownership or occupation of residence, purchase or occupation of private cars, recreation boats, construction/use/ownership of houses or swimming pools, tuition/private school fees, housekeepers [exceeding two]) give rise to deemed income, which forms the basis of taxation if thisis higher than the actual declared income.
Business income
The separatetaxation of income from freelancers and soleproprietorships is abolished (see the Taxes on personal incomesection). Instead, aunified tax scale applicable to employment income, pensions, and business profits is introduced.
Capital gains
Transfer ofnon-listed sharesis subject to capital gain tax at the rate of 15%. Transfer of listed shares is again taxed at 15% unless specific conditions/exemptionsapply.
A transfer duty of 2‰ is imposed on the gross sale proceeds of listed shares.
Dividend income
Dividends distributed within taxable periods commencing after 1 January 2020 arising from entities operating under the legal form of Société Anonyme (or Limited Liability) are taxed via corporate withholding taxation at the flat rate of 5% (said rate was set to 10% for the dividends distributed during the year 2019).
Interest income
Interest on deposits with banks operating in Greece and interest from Greek bonds and treasury bills are subject to income tax at the rate of 15%, and this tax is withheld at source with exhaustion of any further income tax liability. Non-residents are exempt from the WHT where the deposit is kept in foreign currency.
Rental income
Income from real estate property is taxed at separate rates (see the Taxes on personal incomesection).
FAQs
Detailed guide on taxes in Greece. In Greece, income tax for individuals may reach 44%, but new tax residents can qualify for special tax regimes and lessen their tax burden. Corporate income is taxed at 22%. Greek tax rates are the same for tax residents and non-residents.
What is the disposable personal income for Greece? ›
In Greece, the average household net-adjusted disposable income per capita is USD 20 791 a year, less than the OECD average of USD 30 490 a year. In terms of employment, about 56% of people aged 15 to 64 in Greece have a paid job, below the OECD employment average of 66%.
What is the 183 day rule in Greece? ›
An individual being in Greece for a period exceeding one hundred eighty-three (183) days, cumulatively, during any twelve-month period, shall be considered a Greek tax resident from the first day of his/her presence in Greece.
Do Americans have to pay taxes in Greece? ›
Yes, the US and Greece have signed a tax treaty together. The treaty helps to avoid situations where a taxpayer pays taxes on the same income to both the US and Greek tax authorities. Under the treaty, US citizens living in Greece can claim foreign tax credits for taxes paid to Greece, reducing their US tax liability.
How much tax do you pay on salary in Greece? ›
Income tax
| Income | Taxation |
|---|
| €0 – €20,000 | 22% |
| €20,001 – €30,000 | 29% |
| €30,001 – €40,000 | 37% |
| > €40,001 | 45% |
Average annual wages in Greece from 2000 to 2021 (in euros)
| Characteristic | Average annual wages in euros (2021 constant prices) |
|---|
| 2021 | 16,235 |
| 2020 | 16,178 |
| 2019 | 16,034 |
| 2018 | 16,810 |
9 more rowsJul 4, 2024
Proof of sufficient funds corresponding to a stable annual income to cover living expenses i.e. retirement pension, bank account statements, title deeds, social security pension (which needs to be apostilled), lease contracts or any other legal evidence.
What is the average income in Greece in USD? ›
UNECE statistics
| Country | Gross Average Monthly Wages in 2022 (USD, at current exchange rates) |
|---|
| Czech Republic * | 1,770 |
| Lithuania * | 1,628 (2020) |
| Slovakia * | 1,512 |
| Greece * | 1,417 |
42 more rowsWhat is Disposable Personal Income? After-tax income. The amount that U.S. residents have left to spend or save after paying taxes is important not just to individuals but to the whole economy. The formula is simple: personal income minus personal current taxes.
How much money do I need to get residency in Greece? ›
Yes, you can get a residence permit in Greece if you buy a house. However, the house you're going to buy should be €250,000 or €500,000 minimum (depending on the location) to be able to qualify for Greece residency.
If you wish to stay in Greece for longer than 90 days within a 180-day period, you should apply for a visa at Greek Embassy or Greek Consulate prior to your arrival in Greece. Visas may be issued for property owners, students, employment, athletes, coaches, etc.
What is 90 180 rule in Greece? ›
After spending a total combined time of 90 days in Greece, or any other country in the Schengen Area, means having to wait another 90 days before being able to return. This period of 90 days starts to count one day after the end of the previous 180 days.
Is it cheaper to live in Greece or us? ›
From housing to healthcare, rent to transportation, Greece currently offers a significantly lower cost of living than in the U.S.
Is US social security taxed in Greece? ›
The Greek Government does not tax your US Social Security. You pay taxes in the US for your SS.
Does Greece tax US pensions for retirees? ›
The percentage Greece offers a flat 7% tax on foreign pensions for retirees under the non-domicile regime. Under Greece's non-dom status, you can pay a flat tax on your foreign income. This way, you can simplify your tax obligations.
What is the tax rate for retirees in Greece? ›
The percentage Greece offers a flat 7% tax on foreign pensions for retirees under the non-domicile regime. Under Greece's non-dom status, you can pay a flat tax on your foreign income. This way, you can simplify your tax obligations.
What is the average tax rate in Greece? ›
In Greece, the average single worker faced a net average tax rate of 24.8% in 2023, compared with the OECD average of 24.9%. In other words, in Greece the take-home pay of an average single worker, after tax and benefits, was 75.2% of their gross wage, compared with the OECD average of 75.1%.
How much is tax free in Greece? ›
The standard VAT rate in Greece is 24%. As a non-EU resident, you can receive a VAT refund of approximately 12.5% to 14.75% on products subject to this standard rate. To benefit from tax-free shopping in Greece, you must have a permanent residence outside the EU and be over 18 years old.
