mouche wrote:Never been asked for a pink slip. Not heard of anybody else in our area who have been asked for same. All non tax residents but with tax number, owned house, car etc.
Pink slips used to be a requirement for all non-tax residents. The imputed income rules used to apply to non-tax residents. Thus for every applicable thing you own, e.g. property, car, pool, boat, plane etc, the Greek tax authority would assign you an income. They would add this up to derive a total imputed income. If you couldn't prove that you had brought this amount of money to Greece, by providing pink slips, then you would be deemed to have earned this amount in Greece and be taxed accordingly. I can well believe you were never asked for them, Mouche, but would you have been able to provide them if you were asked? Typically I am never asked to provide proof of the purchase receipts I collect. I tell my accountant the total amount and he enters that on my tax return. A few years ago I was forced to undergo a full tax audit and then I had to supply them. It is pretty normal for all tax authorities to take declarations on trust but sometimes ask for proof. It is pretty rare for a tax authority to ask for proof of every item on every declaration. When doing your tax return did your accountant ask you how much money you had transferred to Greece that year?
For people who are tax resident the rules were a little different. You had to declare your world-wide income here. Your imputed income was still assessed. If your declared income was more than the imputed income you were taxed on your declared income. If the declared income was less than the imputed income then you were taxed on the imputed income. So far my declared income has always been more than my imputed income so I have been taxed on that. Tax residents could not use pink slips.
The rules were changed last year or the year before for non-tax residents. I believe nobody can use pink slips now except in the first couple of years after you move here. Now if you are non-tax resident and have no income in Greece then the imputed income does not apply to you. If, however you have any income at all in Greece then the imputed income does apply and you are supposed to declare your worldwide income here. Obviously if that income is taxed elsewhere and you are subject to a double taxation agreement and you can get proof of that from the other country you wouldn't pay tax on it here. As far as I can see anybody who has a bank account here has some income in Greece because all accounts pay some interest, however small. I don't know the tax authorities attitude to that because I am tax resident.
All the above applies to normal annual income. I still think it would be wise to get pink slips for major purchases when first coming to Greece, e.g. property, car etc.