Greek tax residency query

[Mixos]

Thanks very much Tim, Paul and Warwick for your replies and links. I THINK things are a bit clearer now, although my brain hurts from all the crazy rules that seem to defy logic. But that's Greece I guess. I have now heard from a charming fellow at the Greek Embassy in London who has furnished me with a phone/fax number for "The Tax Authority for non-Greek residents" in Athens. If that produces anything that makes things any clearer I will post again.

[scooby]

The simplest thing to do if unsure is to keep all your receipts (write on the back what they were for if you can be bothered) then if they are required you can produce them and if not you could use them to start your fire in the winter (but I would keep them for a few years) simples. The chances of you being audited are, I would think, very slim.

[Kilkis]

...write on the back what they were for if you can be bothered...

There is no real need to do this. If you are audited you simply hand over all the receipts to the tax authorities. They check them, decide if they are valid, add up the value of all those they deem to be valid and see if it is at least what you have declared on your tax form. If it is you are OK. If not you will have your tax free allowance reduced appropriately and possibly get fined for supplying false information.

Personally I keep a record of the total amount collected and inform my accountant of that figure when we are doing the tax return. He then calculates what amount I need to declare based on my declared income and fills in a figure between the required amount and the actual amount.

Some events, in my case it was a largish tax rebate, mean that you are forced to undergo a full audit. The tax office seems to struggle to cope with all these so I suspect the chance of a random audit is pretty small. Until last year I had never undergone an audit since becoming tax resident here in 1997.

Warwick

[altohb]

I enter all of ours onto a spreadsheet, giving the amount, the recipient (and their AFM) and what it was for. I give the accountant a print of this list and keep the receipts until the thing has been filed and we've had clearance.

[scooby]

The simplest thing to do if unsure is to keep all your receipts (write on the back what they were for if you can be bothered) then if they are required you can produce them and if not you could use them to start your fire in the winter (but I would keep them for a few years) simples. The chances of you being audited are, I would think, very slim.

This is for your own records really so you know which is which thats all, all simple stuff.

[Kilkis]

I enter all of ours onto a spreadsheet, giving the amount, the recipient (and their AFM) and what it was for. I give the accountant a print of this list and keep the receipts until the thing has been filed and we've had clearance.

I also enter it on a spreadsheet, because I am totally anal. I asked if my accountant wanted it and he declined. You never have to provide any analysis or any information other than the total amount. If the tax authority demand to see the receipts they then decide what's what.

Warwick

[altohb]

I enter all of ours onto a spreadsheet, giving the amount, the recipient (and their AFM) and what it was for. I give the accountant a print of this list and keep the receipts until the thing has been filed and we've had clearance.

I also enter it on a spreadsheet, because I am totally anal. I asked if my accountant wanted it and he declined. You never have to provide any analysis or any information other than the total amount. If the tax authority demand to see the receipts they then decide what's what.

Warwick

Our accountant, conversely, was delighted to have the list. It is also useful for personal budgeting purposes.

[Kilkis]

...Our accountant, conversely, was delighted to have the list. It is also useful for personal budgeting purposes.

I can't for the life of me imagine why? All he/she can do is enter the total amount on the E1 Tax return. If the tax man decides to audit he has no interest in the analysis, he simply wants the receipts.

Warwick

[Kathleen]

[quote="Tim"]Hi Mixos

If it's any help, I'm in the same position as you are; however on my last trip to the island my accountant assured me that the 'pink slip/fund transfer' for non tax-residents has been abolished.


This was the same information I was given at the end of last year. However, on my latest visit a couple of weeks ago to my accountant to collect details of my latest completed tax return, I was told that there is still an imputed income of some description being used for non residents! I was advised to continue transferring money as I do now, via cheques drawn on a UK bank account into my Eurobank Stirling account. I then transfer funds as required to top up my Euro account using the cash to pay for car hire and visiting expenses over the year. I was advised it was safer to be able to produce pink slips if the Tax Office asked for them in future to support the source of my income.

Chaos rules!

Kathleen

[Tim]

Hi Kathleen

That's interesting (and slightly worrying) info. I believe the imputed income was based on house size - and in my case the amount I was required to transfer every year was 5000 Euros.

Obviously everyone's individual circumstances are different, but if I instead transferred only enough to cover visiting expenses and car hire I reckon my transfer would, for the three trips I make each year, be about 1500 Euros.

Would this be enough for whatever imputed income figure they've now decided on? I hope so!

Tim

[Kilkis]

...Would this be enough for whatever imputed income figure they've now decided on? I hope so!

Tim

Possibly not. Either they will not apply an imputed income at all in which case you don't need to transfer anything. If they do apply an imputed income I think it will have a base level of €3,000 for a single person or €5,000 for a married couple. See item 10 of imputed income in the latest TaxOasis document. The phrasing seems to imply that this figure only applies in the case where there is no other amount but, based on the calculation the accountant did for me, this amount is added to all the other figures. It is also shown this way in the example calculations.

Warwick

[Tim]

Hi Warwick

Yes, I see where you're coming from. However I'm thinking and hoping that the phrase in the heading of Q2 supercedes the 10 rules that follow.

The cost of living is not applied to the individuals that spend less than 183 days in Greece ( no tax resident) and they have no income in Greece.

It will, no doubt, remain as clear as mud!

Tim

[Kilkis]

That's exactly what I was saying, Tim.

If TaxOasis is correct then you don't need to transfer anything at all. Your €1,500 is not needed.

If TaxOasis is wrong then you need to transfer at least €3,000 for a single person or €5,000 for a married couple. More if you own any of the relevant items. Your €1,500 is not enough.

Warwick

[Kathleen]

To be on the safe side I am sticking with the figure of around €3000 a year.

Being able to spend longer periods in my home means bigger car hire bills, I withdraw sufficient each visit to pay for the next one in cash at the airport.

Along with other bills and expenses it soon goes

Kathleen

[Eleni13]

Along with other bills and expenses it soon goes

There are increasing numbers of other bills lately, we find!