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, but some modifications are applicable as per the family unit conditions.

Taxable income includes:

• income from employment,
• income from a business
• professional income,
• investment income,
• pensions (under certain conditions),
• benefits in kind.

Certain deductions are permissible for 2010 including:

• social security contributions in full,
• life insurance premiums up to EUR 1’200 for both spouses in total,
• interest payments on mortgages signed up to 31 December 2002 are fully deductible but only for one principle home in the taxpayer’s lifetime, 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 2010:

• 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 2010:

•    0.00% for the first EUR 12’000, (submit receipts to qualify for the tax exemptions),
• 18.00% from EUR 12'000 to EUR 16'000,
• 24.00% from EUR 16'001 to EUR 22'000,
• 26.00% from EUR 22'001 to EUR 26'000,
• 32.00% from EUR 26'001 to EUR 32'000,
• 36.00% from EUR 32'001 to EUR 40'000,
• 38.00% from EUR 40'001 to EUR 60'000,
• 40.00% over EUR 60'001.

Filing date:

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