Each taxation scale
usually provides a tax free amount of income for which there is no tax
imposition (tax exemption bracket). The amount of income that exceeds this amount
is taxed with a progressive tax scale.
For determining the net income of every scale, a number of expenses are
deducted, which are usually expenses incurred for the acquisition of the income
by a certain category. Moreover, the tax authority adds the income that is
received from presumed or actual expenses (expenses incurred for the purchase
of a car or a house, building a house in Greece, etc), based on the relevant
provisions of the Greek law ("tekmiria").
Income received from real estate property in Greece, may have a different tax
treatment.
Reductions from tax are provided, depending on various factors including the
number of children that burden each taxpayer, medical expenses and expenses for
hospitalization, housing needs of the tax-payers' children, expenses for rents
and out-of school lessons etc. Foreign residents may have a different tax
reduction treatment.
Despite the actual
income that is declared from the taxpayer, his total income is also defined,
based on his and his family's expenses, as per the relevant provisions of the
Greek Income Taxation law. The definition of the income based on the expenses,
is based on the rationale that the taxpayer must justify expenses incurred by
declaring respective income that he has “presumably” received
("tekmiria").
The expenses may include: a) presumed expenses that each taxpayer is considered
to have acquired from ownership rights or use of certain assets, such as the
possession of a secondary residence in Greece; possession of a private car; possession
of yachts, aircrafts, etc... or b) actual expenses, made for the acquisition of
assets, allowance of loans, gifts, repayment of loans, etc.
All the above procedures for the fulfillment of the tax obligations regarding
your income in Greece, can be accomplished through a Limited Power of Attorney to
specialized like our Greek Law Office.
February
2020
“The content of this website do not constitute legal advice and under no circumstances should they be considered as such, until our office is retained and has reviewed the complete file of the client’s case”