One of the first things you should do when settling in Greece or buying property
in Greece is to register for a Tax number (A.F.M. – pronounced aa – fee - mee).
An AFM number is required to buy a car or motorcycle, to rent or buy property and
to legally work in Greece (for National Insurance and tax), amongst other things.
The local Greek Tax Office (Eforia) is the place to do this. An accountant or lawyer
can obtain one for you or you can apply yourself in person at your local tax office.
Documents usually required to obtain a Tax number (A.F.M) are:
Tax Returns
Once you have an AFM (Tax) number, you are registered with the Greek
authorities and are required to submit a yearly tax return in Greece (Form E1)
regardless of income or residency i.e. even if it is a nil return. Property owners
may also be required to file a property declaration (Form E9) yearly.
The tax year runs from January to December in Greece. Tax returns are due
between February and May of the following year, according to whether you file as
a business or an individual.
Although married persons are taxed separately in Greece, they must
nevertheless file a joint tax return.
Tax Resident or Non Resident?
According to a new law, voted on 31/03/2011 the physical presence of an
individual for more than 183 days per year in Greece is automatically classified as
tax residence in Greece and is liable to be taxed for the worldwide income in the
Greek tax office. International tax agreements are applied for avoiding the double
taxation. So the individual is liable to cover the cost of living and the imputed
income, and also must collect income receipts.
NON RESIDENTS in Greece
When buying property, land, a car or boat on Crete. In order to avoid paying
income tax on money transferred from abroad you must obtain prrof of an
international bank transfer ( a pink or white slip ) from your Greek bank.
Open your own bank account in Crete and make any payments in Crete from this
account. When transferring money into your Greek bank account from abroad
make sure that you get a copy of the money transfer order and a 'pink (or white)
slip' from the Greek bank for tax purposes. This will prove where the money
originated and that tax has already been paid on it.
Transferring cash to Greece - IMPORTANT NEW RULING
In the past, any important amount of cash transferred on your person could be
declared to the customs authorities at your point of entry into Greece, and they
could issue you a receipt. Since 24/3/08 the customs NO LONGER issue this
receipt and any cash which you wish to declare to the tax authorities must
always to be transferred only through a bank.
If you own a home in Greece
You must advise your accountant how many months you reside in your home
each year.
You must ensure that you keep the electricity bills for the last 6 years because
the tax authorities can ask for them as proof of the number of months the home
was closed. If you have more than one home in Greece, which is not covered by a
lease contract or an EOT license, you must keep a copy of the electricity bills to
give to your accountant. The tax authorities check the electricity consumption in
order to ascertain whether the home was rented illegally.
Income Tax Brackets for 2012 Tax return, on 2011 income
0 - 5,000 Euros * 0 % **
5,001 -12,000 Euros 10 %
12,001 -16,000 Euros 18 %
16,001 -26,000 Euros 25 %
26,001 -40,000 Euros 35 %
40,001 -60,000 Euros 38 %
60,001 -100,00 Euros 40 %
Over 100,001 Euros 45%
* Those registered as non resident for tax purposes in Greece are liable to pay
10 % tax on the first 5,000 euros of any income in Greece.
** Tax residents in Greece must collect receipts of shopping purchases in order
to obtain the full tax free allowance. See below.
Collecting Receipts - For Tax Residents Only
New tax rules introduced in 2010 include the need for tax residents to retain
and declare receipts for purchases between January 1st and December 31st, in
order to obtain the full tax free allowance on income.
A percentage of receipts must be collected and retained for all those who are tax
resident.
Minimum worth expenditure receipts required by the tax office in order to qualify
for the tax bracket of 0% income tax is: 25% of the total income
Example of what worth personal receipts a tax resident with annual income of
25,000€, must collect every year: 25,000x25%=6,250 worth personal receipts
If the tax resident fails to collect the minimum requirement worth of receipts, he is
liable to pay 10% tax fine on the deference for the tax bracket of 0% (5,000x10%
=500€).
Non tax residents in Greece are not allowed any deductions or tax credits from
their income.
Types of Receipts
Collect normal till receipts for daily living expenses (supermaket shopping,
household purchases. petrol etc) showing the date, amount and AFM (tax)
number of the business.
Property Tax
The owner of a property is liable to pay property tax if the value of his property
exceeds the threshold allowance of 400,000€. (Since 1/1/2010, the previous real
estate duty (ETAK) is no longer applied).
New Property Tax
In parallel with the property tax, the tax office has imposed a ‘special property
duty’ for year 2011 and 2012 that is collected through the DEI electricity bill.
This duty varies from approximately 3-5€ per square meter of your home (plus
auxiliary lighted space). It is added to your electricity bill and for 2011 it is paid in
two installments (December 2011 and February 2012). The same amount will be
paid in 4 installments for 2012 starting from May. More Information - New Property
Tax - Download
Download HERE the latest detailed information on Tax liabilities in Greece for
non Greek citizens 2012 (Word.doc) - includes details on:
Income Tax
Property Tax
Property transfer Tax
Capital Gains Tax
Inheritance Tax
Swimming pool tax
Car Tax
Imputed Income
________________________________________________________
Tax Offices in Crete
Open 8am to 1pm Monday to Friday.
Heraklion
‘A’ Theotokopoulou and Koronaiou Street
‘B’ Knossou and Natheria Street
Chania .
2nd Floor
3 Tzanakaki Street
Rethymnon
Hygoum Gabriel 111
Agios Nikolaos
Epimenidou 20
__________________________________________________
The above information is for guidance only and should not be taken as tax
advice. Taxation legislation changes frequently and this information may
not reflect the latest changes, while tax status and liabilities differ according
to individual circumstances.
Always consult a Greek accountant regarding your personal tax status and
obligations if you live, work or own assets in Greece.
Supplied by George & Niki Atsalakis, Accountants www.cretanaccountant.gr
in Greece is to register for a Tax number (A.F.M. – pronounced aa – fee - mee).
An AFM number is required to buy a car or motorcycle, to rent or buy property and
to legally work in Greece (for National Insurance and tax), amongst other things.
The local Greek Tax Office (Eforia) is the place to do this. An accountant or lawyer
can obtain one for you or you can apply yourself in person at your local tax office.
Documents usually required to obtain a Tax number (A.F.M) are:
- passport and a photocopy of passport
- birth certificate and a photocopy of birth certificate
- marriage certificate if married
Tax Returns
Once you have an AFM (Tax) number, you are registered with the Greek
authorities and are required to submit a yearly tax return in Greece (Form E1)
regardless of income or residency i.e. even if it is a nil return. Property owners
may also be required to file a property declaration (Form E9) yearly.
The tax year runs from January to December in Greece. Tax returns are due
between February and May of the following year, according to whether you file as
a business or an individual.
Although married persons are taxed separately in Greece, they must
nevertheless file a joint tax return.
Tax Resident or Non Resident?
According to a new law, voted on 31/03/2011 the physical presence of an
individual for more than 183 days per year in Greece is automatically classified as
tax residence in Greece and is liable to be taxed for the worldwide income in the
Greek tax office. International tax agreements are applied for avoiding the double
taxation. So the individual is liable to cover the cost of living and the imputed
income, and also must collect income receipts.
NON RESIDENTS in Greece
When buying property, land, a car or boat on Crete. In order to avoid paying
income tax on money transferred from abroad you must obtain prrof of an
international bank transfer ( a pink or white slip ) from your Greek bank.
Open your own bank account in Crete and make any payments in Crete from this
account. When transferring money into your Greek bank account from abroad
make sure that you get a copy of the money transfer order and a 'pink (or white)
slip' from the Greek bank for tax purposes. This will prove where the money
originated and that tax has already been paid on it.
Transferring cash to Greece - IMPORTANT NEW RULING
In the past, any important amount of cash transferred on your person could be
declared to the customs authorities at your point of entry into Greece, and they
could issue you a receipt. Since 24/3/08 the customs NO LONGER issue this
receipt and any cash which you wish to declare to the tax authorities must
always to be transferred only through a bank.
If you own a home in Greece
You must advise your accountant how many months you reside in your home
each year.
You must ensure that you keep the electricity bills for the last 6 years because
the tax authorities can ask for them as proof of the number of months the home
was closed. If you have more than one home in Greece, which is not covered by a
lease contract or an EOT license, you must keep a copy of the electricity bills to
give to your accountant. The tax authorities check the electricity consumption in
order to ascertain whether the home was rented illegally.
Income Tax Brackets for 2012 Tax return, on 2011 income
0 - 5,000 Euros * 0 % **
5,001 -12,000 Euros 10 %
12,001 -16,000 Euros 18 %
16,001 -26,000 Euros 25 %
26,001 -40,000 Euros 35 %
40,001 -60,000 Euros 38 %
60,001 -100,00 Euros 40 %
Over 100,001 Euros 45%
* Those registered as non resident for tax purposes in Greece are liable to pay
10 % tax on the first 5,000 euros of any income in Greece.
** Tax residents in Greece must collect receipts of shopping purchases in order
to obtain the full tax free allowance. See below.
Collecting Receipts - For Tax Residents Only
New tax rules introduced in 2010 include the need for tax residents to retain
and declare receipts for purchases between January 1st and December 31st, in
order to obtain the full tax free allowance on income.
A percentage of receipts must be collected and retained for all those who are tax
resident.
Minimum worth expenditure receipts required by the tax office in order to qualify
for the tax bracket of 0% income tax is: 25% of the total income
Example of what worth personal receipts a tax resident with annual income of
25,000€, must collect every year: 25,000x25%=6,250 worth personal receipts
If the tax resident fails to collect the minimum requirement worth of receipts, he is
liable to pay 10% tax fine on the deference for the tax bracket of 0% (5,000x10%
=500€).
Non tax residents in Greece are not allowed any deductions or tax credits from
their income.
Types of Receipts
Collect normal till receipts for daily living expenses (supermaket shopping,
household purchases. petrol etc) showing the date, amount and AFM (tax)
number of the business.
Property Tax
The owner of a property is liable to pay property tax if the value of his property
exceeds the threshold allowance of 400,000€. (Since 1/1/2010, the previous real
estate duty (ETAK) is no longer applied).
New Property Tax
In parallel with the property tax, the tax office has imposed a ‘special property
duty’ for year 2011 and 2012 that is collected through the DEI electricity bill.
This duty varies from approximately 3-5€ per square meter of your home (plus
auxiliary lighted space). It is added to your electricity bill and for 2011 it is paid in
two installments (December 2011 and February 2012). The same amount will be
paid in 4 installments for 2012 starting from May. More Information - New Property
Tax - Download
Download HERE the latest detailed information on Tax liabilities in Greece for
non Greek citizens 2012 (Word.doc) - includes details on:
Income Tax
Property Tax
Property transfer Tax
Capital Gains Tax
Inheritance Tax
Swimming pool tax
Car Tax
Imputed Income
________________________________________________________
Tax Offices in Crete
Open 8am to 1pm Monday to Friday.
Heraklion
‘A’ Theotokopoulou and Koronaiou Street
‘B’ Knossou and Natheria Street
Chania .
2nd Floor
3 Tzanakaki Street
Rethymnon
Hygoum Gabriel 111
Agios Nikolaos
Epimenidou 20
__________________________________________________
The above information is for guidance only and should not be taken as tax
advice. Taxation legislation changes frequently and this information may
not reflect the latest changes, while tax status and liabilities differ according
to individual circumstances.
Always consult a Greek accountant regarding your personal tax status and
obligations if you live, work or own assets in Greece.
Supplied by George & Niki Atsalakis, Accountants www.cretanaccountant.gr
| Copyright 2004-2012 Carol Palioudaki. Greece Tax AFM. www.livingincrete.net |
| Living in Crete |
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