Greece - Tax Guide for Freelance Contractors

Tax residents in Greece:          are liable to pay Greek tax on their worldwide income,
Non tax residents in Greece:   are liable to pay tax only on their Greek source income.

Tax residency:

Residence is not determined by tax law, but determined on the basis of factual circumstances such as:

• length of stay in Greece,
• the possession of a residence permit.

Married persons file a tax return jointly.

Taxable income includes:

• income from employment in money or in money’s worth,
• benefits in kind.

Certain deductions are permissible for 2009 including:

• social security contributions in full,
• life insurance premiums up to EUR 1’200 for both spouses,
• interest payments on mortgages signed up to 31 December 1999 are fully deductible but only for one principle home in the taxpayer’s lifetime,
• interest payments on mortgages signed between 1 January 2000 and 31 December 2002 are fully deductible if the home is no bigger than 120m2, if bigger the deductible interest is reduced proportionally,
• under certain circumstances, a tax credit is applicable for interest payments on mortgage loans taken after December 2002,
• certain cash donations to institutions and charities are also deductible.

Tax credits for 2009:

• 20% of the annual medical expenses of the taxpayer and his dependents up to a maximum of EUR 6’000,
• 20% of the annual home rent up top a maximum of EUR 240,
• 20% of the annual rent paid in respect of dependent children who are studying at a Greek school or university up to  a maximum of EUR 240,
• 20% of the educational expense for a taxpayer and his dependents up to a maximum of EUR 240,
• under certain circumstances, a tax credit is applicable for interest payments on mortgage loans taken after December 2002,
• 20% of the expenses for converting an oil heating system to natural gas or solar power or for the purchase of power generating systems using renewable energy sources up to a maximum of EUR 700,
• 20% of alimony payments up to EUR 600.

Income tax rates for 2009:

•    0.00% for the first EUR 12’000,
• 25.00% from EUR 18’000 to EUR 45’000,
• 35.00% from EUR 45’001 to EUR 75’000,
• 45.00% over EUR 75’001.

The first non-taxable bracket is increased by:

•  EUR   1’000 for one dependent child,
•  EUR   2’000 for two dependent children,
•  EUR 10’000 for three dependent children,
•  EUR   1’000 for each additional child.

Filing date:

Between May 4th and June 1st, in the year following the tax year (for employees).