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>> Q&A about Economy & Finance
 Subject: |
Taxes in Greece |
| Question: |
A friend of mine complains continuously for the taxes she pays in Greece. Do you think she is right? What are the general guidelines? |
| Answer: |
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Well.....taxation is always a pain for Greeks! Especially for businesses!!
Generally speaking individuals are subject to income tax at progressive rates, from 0% to a maximum 45%.
Individuals are taxed on either their declared or estimated income, whichever is higher. Estimated income is determined on the basis of living expenses, ownership and acquisition of assets. The main factors in imputing income include:
- engine size of motor vehicles
- cost of maintaining household staff
- purchase of real estate
- cost of operating pleasure boats, and
- repayment of loans or credit.
The tax year ends on December 31. Filing is generally due between March and May, depending on the official announcement by the Ministry of Finance. Income tax may be paid in three equal installments. If tax is paid in one lump sum, a 5% discount is given.
Permanent residents of Greece are liable to income tax on their international income, whether earned in or remitted to Greece or not.
If tax has been paid in another country on income not sourced in Greece, that tax may be deducted up to the amount of tax payable in Greece on the same income.
Temporary residents of Greece are taxed only on income earned and sourced in Greece. |
answer provided by volunteer expert: Greece_FanatiC |
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