Pink Slip Question

[Tim]

Hi All

Just back from a week spent on the island. Had my usual fantastic time – weather superb, food wonderful and people lovely. Also had my usual argument with my Greek accountant – perhaps one of the older hands could help, please?

I bought my house near Sitia in 2008 and moved into it. My accountant said that to prove I had sufficient means to live there and wasn’t moonlighting in the Greek economy and not paying tax, I needed to transfer a set amount from the UK once a year, get the pink slip from my bank and include it in my tax return. No problem. This I did.

I moved back to UK in 2009 and now only visit my house in Crete three times a year. My argument is that as I live in England, work in England, pay tax in England and am only resident in Greece for 20 -23 days per year, the money transfer and pink slip are now unnecessary. She disagrees, and every year I make the transfer, withdraw the money in Euros, take it back to UK and change it (expensively) back into sterling. I’d be grateful for any opinions on this subject.

Many thanks
Tim

[filippos]

I don't know whether your accountant is right or wrong but, if she's right, why not repatriate the money in Sterling? I've always found Greek banks, especially Bank of Greece (not the National Bank of) give better rates and lower charges. Last time I used Bank of Greece there was no commission or fee.

That could have changed with the crisis but worth enquiring.

P.S. Is there a problem with transferring back electronically? I don't know as I've never needed to do it.

[Kathleen]

Like you Tim I am not a full time resident.

I was told by my accountant in March that after the completion of the 2011 year's tax return I am no longer required to transfer money in and obtain pink slips as proof.

I shall continue my current method of funding, however, which consists of paying two or three UK cheques into my Sterling account over the year, just over £3000 pa. I transfer money to the Euro account periodically where keeping a modest balance, it funds the standing order for DEH. I also make regular withdrawals from that account keeping a Euro float which I have on hand to pay for car hire, the gardener and expenses when I am over.

Bear in mind things may change yet again and we may be asked for pink slips in the future!

Kathleen

[Tim]

Like you Tim I am not a full time resident.

I was told by my accountant in March that after the completion of the 2011 year's tax return I am no longer required to transfer money in and obtain pink slips as proof.
Kathleen

This is interesting, Kathleen. Was there a specific reason that your requirement to do the transfer/pink slip thing came to an end? Was it for a certain period of time or did perhaps your personal circumstances change?

I'd be interested to know.
Tim

[mary p]

An amendment to the tax law abolishes the application to non residents of assumptions on the acquision of income in Greece the new regime applies 1-1-2011. It is to long winded to quote the whole of this new law. This is shown on Katrina Perrou on Tax Greece

I am sure this has been discussed before

[Kathleen]

Thanks for responding to this posting Mary, I had not looked back at the original since my reply to Tim.

As Mary say's Tim, the law was found to be unlawful by the courts and as non residents from 1/1/2011 we are no longer required to produce pink slips. The web site she is referring to is this one:

http://www.kperrou-ontax.com/1/post/201 ... l#comments


Kathleen

[Tim]

Extremely grateful for your help mary and kathleen. I've taken the relevant details from the KPerrou webpage and will use them as ammo next time I speak with my accountant. (35 days and counting til my next visit!).

Thanks once again
Tim

[Rej]

Thanks mary p and Kathleen. I am going to see my accountant next week and will take a copy of the essential paragraph with me just in case he is not up to speed.

[Al]

I understand the foregoing. However I was always led to believe that "pink slips" were there to prove income from abroad, and that it had already been taxed in the country of origin. As such they may still come in handy. The "assumption" of income based on assets is a relatively recent phenomenon - glad it's gone - but it was not the original or only reason for "pink slips."

[Kathleen]

I quite agree Al.

My return for year ending 31/12/2011 has been completed by my accountant, I did produce pink slips for its completion. I don't know if she used them but I will now no longer bother to get them from the bank.

I do, however, intend to continue paying money via UK cheque into my Sterling account with Eurobank and transfer it into the Euro account at about the same rate. That way if the need for pink slips rears its head again in the future I will be able to obtain them and support the fact that the cost of maintenance of my property is provided for by transferred UK income. Less hassle than having to transfer a larger lump sum at short notice, especially in these uncertain financial times!

Kathleen

[Rej]

Thanks mary p and Kathleen. I am going to see my accountant next week and will take a copy of the essential paragraph with me just in case he is not up to speed.

He was up to speed but advised me to collect "pink slips" anyway because. . . "we don't know what will happen after the election."

[jet]

I wanted to transfer money from my Scandinavian Internet banking as the SEPA Direct Debit and the following day at 10:00 is the money deposited into my Greek bank which DIAS TRANSFER I went to the bank some time after to get a Pink Slip staff was completely puzzled. They have previously said that I have e-banking, I can even print out a receipt myselves and the e-banking takes their work. I've printed a statement specification from my shipment in Greek language, along with the receipt from the Scandinavian bank. My question would it be accepted by the tax authority, when I to the year 2013 must submit to my accountant. Has anyone in the forum experienced something similar?

[bobscott]

Hi Jet. I used the white copies of the transfer from my bank in the UK via XE.com and into my Greek bank account last year and no one raised an eyebrow.

As far as pink slips go, I think I am right in saying that all they proved was that you had changed 'foreign' money from one currency into the Greek 'local' currency (Euros or Drachmae in the early days). That as far as I know was their sole function.

Bob.

[Al]

I agree with the last post except to add that my understanding was that Greece, like most other countries, wants some proof that foreigners living in the country have enough to live on, and won't be a drain on the government except in terms of mutual treaties (eg our entitlement to IKA).

[jet]

I know that IKA get money, and a fixed amount every time a doctor is visited by the patient's international health insurance, so Greece has no cost to residents

/jet