Bringing money to Crete

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annabanana
Posts: 93
Joined: Sat May 08, 2010 6:58 pm
Location: Devon/sitia

Bringing money to Crete

Postby annabanana » Sun May 30, 2010 11:25 am

Hi everybody

We are coming to Crete in June and bringing over 10000 euros torwards our house build. I know this is legal to do, but was wondering if I can get some proof that I have brought it with me at the airport. We have heard that in the future if we sell our house we need to prove that the money came from UK to avoid paying taxes.

Any ideas on this please reply.

Annabanana

scooby

Postby scooby » Sun May 30, 2010 11:34 am

Do you not have a Greek bank account? Then you simply transfer the money then you have proof.

Kathleen
Posts: 464
Joined: Sat May 12, 2007 8:46 pm
Location: North East UK/ex Rethymnon

Postby Kathleen » Sun May 30, 2010 11:46 am

You are no longer permitted to declare cash imports at the Airports. As Scooby says, better to make a bank transfer and obtain a 'Pink Slip' or you could be in trouble.

You do not say where you live Anna, but carrying 10000€ in cash could also cause you problems if you are picked up as an outward passenger carrying it from UK. You would be detained for questioning and required to prove the legitimate origin of the money under the terms of the Proceeds of Crime Act, which was set up to identify money laundering and tax evasion activities.

Kathleen

allan
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Joined: Mon Jul 02, 2007 9:56 am
Location: Chania

Postby allan » Sun May 30, 2010 11:58 am

She could always put it here>>>>>>>

http://news.bbc.co.uk/2/hi/wales/north_ ... 190055.stm

filippos
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Re: Bringing money to Crete

Postby filippos » Sun May 30, 2010 3:31 pm

annabanana wrote:We have heard that in the future if we sell our house we need to prove that the money came from UK to avoid paying taxes.
If you cannot prove to the Greek tax authorities that the money originated outside Greece they will assume that you earned the money here and will demand income tax on the full amount. The generally accepted proof is a "pink" slip issued by a Greek bank and you will be hard pressed to persuade them to accept anything else.

It's not really a question of avoiding taxes when you sell your house in future but, if the taxman hasn't found out about the money before then, that's when he will find out. To sell a property one of the documents needed is one stating you have no outstanding tax liabilities. Without it you can't sell and the only way to get it is to pay the tax and probably surcharges/fines for non-payment. In any case, as a property owner, you'll need to submit a tax return.

If you sell your house at a profit you will, in any case, have to pay capital gains tax, currently starting at 25% and reducing in steps to zero after 25 years. [That's right in principle but I may be wrong about the percentage and timescale which may be 20 years].

If, before your house is complete, the taxman decides you should pay tax [because you can't prove you brought the money into Greece] you may find you can't get electricity connected.

Kilkis
Posts: 12425
Joined: Sat Apr 21, 2007 3:58 pm
Location: Near Chania

Postby Kilkis » Sun May 30, 2010 5:55 pm

To purchase any property you must have a tax number, AFM. The notary will require this to put it in the contract. No AFM - no purchase.

If you have a tax number you have to make a tax return.

Say you buy a property in 2010, in 2011 you must submit a tax form E9, which describes the property you own and exactly who owns it, if ownership is split. You also have to submit a tax form E1 which will specify how much you "paid" for the property plus some of the fees, e.g. to the notary. These are taken from the purchase contract. On the same E1 you will need to account for where the money came from, e.g. transfer from the UK, and be able to support this with documentation, i.e. "pink slips". If you cannot do this you will be assumed to have earned that amount in Greece and be taxed on it.

Not a lot of leeway to get round the law in this case.

Warwick

PS "Paid" is in quotes since it is the price on the contract which may or may not be the actual amount paid.

PPS Some people have had problems where they transferred the money to someone else's account, e.g. the developer/estate agent. The pink slip is then in that person's name not yours so you cannot use it to support source of money. Far better to have your own account and transfer it directly to it.

Kathleen
Posts: 464
Joined: Sat May 12, 2007 8:46 pm
Location: North East UK/ex Rethymnon

Postby Kathleen » Sun May 30, 2010 6:18 pm

allan wrote:She could always put it here>>>>>>>

http://news.bbc.co.uk/2/hi/wales/north_ ... 190055.stm


But it didn't work did it Allan....neither did it work for a punter who stuffed half a million in his trainers in a checked in case! Very trusting I thought!
:wink:
Kathleen

Eleni13
Posts: 507
Joined: Tue Apr 10, 2007 11:13 am
Location: UK

Postby Eleni13 » Mon May 31, 2010 9:51 am

"Very trusting I thought! "


Stupid, I think. Our last flight from Chania to Athens was worrying enough when we realised that neither of us had locked the cases.
That was with nothing valuable in them. Just imagine...... :shock:

karpathoskate
Posts: 135
Joined: Fri Apr 10, 2009 12:22 pm

Moving to Crete

Postby karpathoskate » Mon May 31, 2010 10:43 am

We've lived in Greece for a few years, and had a fair amount of money transferred from UK to our National Bank of Greece account. However, we have never received any "pink slips". We have kept 90% or so of the "order froms" to our UK bank asking for the money to be transferred. So we are now worrying about the lack of pink slips!!

rampanthorse
Posts: 138
Joined: Mon Feb 04, 2008 4:52 pm
Location: kalives, Apokoronas

Postby rampanthorse » Thu Jun 03, 2010 3:49 pm

dont know if you realise this but the bank does not just give you a pink slip, you have to go to the bank and ask for it each year.
Barry

paulh
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Joined: Sun Feb 11, 2007 7:13 pm
Location: Akrotiri

Postby paulh » Thu Jun 03, 2010 4:18 pm

if you think about it it is easy to move money out of this country then bring it back into the country and get a pink slip. In actual fact the pink slip proves nothing except that it came into the country via a bank. I am sure there are tax officials who realise that too so alternative proof of where the money came from must also be acceptable.
Last edited by paulh on Thu Jun 03, 2010 4:25 pm, edited 1 time in total.

Kilkis
Posts: 12425
Joined: Sat Apr 21, 2007 3:58 pm
Location: Near Chania

Postby Kilkis » Thu Jun 03, 2010 4:25 pm

rampanthorse wrote:dont know if you realise this but the bank does not just give you a pink slip, you have to go to the bank and ask for it each year.
Barry


To make it worse you have to ask at the branch where you opened the account. We opened an account with Alpha when we lived in Kilkis in northern Greece. Whenever we transfer money to Alpha bank from the UK the records are in Kilkis. We have to write to Kilkis to get them to send us the pink slips. A local branch knows that we now live in Crete but cannot process this document.

Warwick

filippos
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Postby filippos » Thu Jun 03, 2010 5:39 pm

paulh wrote:.... so alternative proof of where the money came from must also be acceptable.
I'd be inclined to substitute "might" or "ought" for "must".

Bank of Cyprus gives ours direct to our accountant when he asks for them which is usually just before our tax return is due. I have never seen a "pink" slip [of any colour].

moggieman
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Bank of mom/dad

Postby moggieman » Thu Jun 03, 2010 9:01 pm

You can always put it into my bank i will be only two pleased to look after it

SatCure
Posts: 1978
Joined: Fri Oct 05, 2007 9:57 pm
Location: Apokoronas

Postby SatCure » Fri Jun 04, 2010 10:02 am

filippos wrote:Bank of Cyprus gives ours direct to our accountant when he asks for them which is usually just before our tax return is due. I have never seen a "pink" slip [of any colour].


Likewise. On that basis I would recommend Bank of Cyprus and our accountant George Atsalakis in Hania. George even gets our annual car tax sticker and delivers it via the kiosk at Kalyves!

moggieman wrote:You can always put it into my bank i will be only two pleased to look after it

Or even three pleased. ;)


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