TKEG Expat™ (Test) Greece Corporate Tax Guide

Corporate Income Tax (CIT) in Greece is levied at a flat rate of 22%, which is applicable to the net income earned by companies during the tax year. Companies are required to submit their CIT returns no later than the last day of the sixth month following the end of their tax year, providing sufficient time for businesses to assess their final financial results. Payments of the corporate tax liability are made in instalments, with the final payment usually due in December, assuming the fiscal year ends on 31 December. This allows companies to spread the financial burden throughout the year, with six equal monthly instalments. This structure supports businesses in managing their cash flow, especially those with significant liabilities.

In Greece, Personal Income Tax (PIT) operates on a progressive scale, with a marginal tax rate of 44%, depending on an individual’s income bracket. Taxpayers are required to submit their annual PIT returns by 30 June of the following year. This ensures that individuals have ample time to accurately report their earnings, deductions, and liabilities. While no specific final payment date (NP) is given, personal income taxes are typically paid in three instalments, due by the end of July, September, and November. These staggered payments offer taxpayers some flexibility in managing their personal finances and tax obligations, easing the burden of a one-time payment. For individuals with other income types, additional prepayments or withholdings may also apply depending on their financial situation.

In Greece, capital gains tax (CGT) is applied to the profits arising from the sale or transfer of assets, including shares and property. Corporate capital gains are generally taxed at the standard CIT rate of 22%, unless the participation exemption applies, which can reduce or eliminate the tax burden in certain cases where the sale of shares meets specific conditions. For individuals, capital gains are taxed at a rate of 15%, which applies to gains realized from the sale of real estate, securities, and other financial assets. This system ensures that both corporate entities and individuals contribute to the tax system when they realize significant profits from asset transfers, encouraging proper reporting and reducing tax avoidance.

Value-Added Tax (VAT) in Greece applies to most goods and services and is a key revenue source for the government. The standard VAT rate is 24%, but there are reduced rates for specific categories of goods and services. A reduced VAT rate of 13% is applied to items like ready-to-eat fresh foods, non-alcoholic beverages, and specific services like restaurant dining (excluding alcohol). Additionally, a super-reduced rate of 6% applies to medicines, healthcare-related products, electricity, and other essential services aimed at supporting vulnerable populations, such as children and the elderly. Special exemptions and reductions (30% lower VAT rates) are available for islands like Chios, Lesvos, and Samos, recognizing the logistical challenges of these remote regions. These reduced rates help to ease the cost burden on residents while supporting the local economy.

Stamp taxes in Greece cover a wide range of transactions, including property rentals and financial loans. Rentals of non-residential properties, such as office spaces and commercial units, are subject to a stamp duty of 3.6%, except for cases like shopping centers and logistics hubs that are subject to VAT instead. Loans and interest rates may incur a 2.4% stamp duty, though certain exemptions apply, particularly for bank loans and bonds. These taxes ensure that various forms of contractual agreements contribute to the state’s revenue stream, while exemptions help foster investment and financial activity. Stamp duties also apply to various other legal and commercial documents, but these cases tend to be limited to specific transactions outlined under Greek tax law, ensuring businesses and individuals comply with regulatory requirements during key financial operations.