The income tax rates for employees and pensioners are as follows:
First €20,000 - 22 %
Next €10,000 - 29 %
Next €10,000 - 37 %
Above €40,000 - 45 %
There is no tax free band but there is a rebate under certain conditions:
0 Dependent children up to €1,900
1 Dependent child up to €1,950
2 Dependent children up to €2,000
more than 2 Dependent children up to €2,100
It is expressed as "up to" because you only get the full rebate if the tax you owe is at least the amount of the rebate. If the tax you owe is less than the maximum rebate then you would be rebated the amount of tax owed. The rebate is reduced by €100 for each €1,000 of income above €20,000. It is equivalent to a tax free allowance of between €8,636 and €9,545, depending on the number of dependent children. Tax residents also have to collect receipts up to 10 % of total income to qualify for the full rebate although that is changing to electronic payments.
Bank interest is taxed at 15 % and is stopped at source by Greek banks.
Dividends are taxed at 10 %.
There is also a solidarity tax with the following rates depending on total income:
Up to €12,000 - 0%
Up to €20,000 - 2.2 %
Up to €30,000 - 5 %
Up to €40,000 - 6.5 %
Up to €65,000 - 7.5 %
Up to €200,000 - 9 %
Above €200,000 - 10 %
Solidarity tax is not applied like income tax. Whichever band your total income falls into then you pay that rate on all your income. For example if your total income was €45,000 you fall in the "Up to €65,000" band and would need to pay 7.5 % on the whole €45,000, i.e. €3,375. The solidarity tax is applied to your total income, i.e. wages/pension, bank interest and dividends. Some ex-pats may have pension income that remains taxable in the UK and is not liable for income tax in Greece. It is still included for calculating the solidarity tax.