Greece

Social security contributions

Social security contributions are due on salary and benefits in cash or in kind granted by an employer to its employees, with the exception of specifically enumerated extraordinary benefits of social character (e.g. marriage gifts, birth gifts). The imposition of social security contributions depends on the social security fund in which the employee is registered.

As of 1 January 2023, for the primary social security fund (EFKA), social security contributions are withheld at 13.87% at the level of the employee and contributed at 22.29% at the level of the employer. The monthly social security contribution cap for EFKA is set at EUR 7,126.94.

Consumption taxes

Value-added tax (VAT)

The new VAT rate is 24% effective 1 July 2016 (previously 23%). The reduced rate on basic necessities is 13%. A super reduced rate of 6% is also available for certain items. See the Other taxes section in the Corporate tax summary for more information.

Uniform Tax on the Ownership of Real Estate Property (ENFIA)

The ownership of real estate property/property rights in Greece is subject to the ENFIA, which consists of a principal tax imposed on each real estate property and a supplementary tax imposed on the total value of the property rights on real estate property of the taxpayer subject to tax.

More specifically, said tax is not imposed on the objective value of real estate property, but is determined on the basis of various factors, according to the final registration of the property at the land registry or ownership title.

The principal tax on buildings is calculated by multiplying the square metres of the building by the principal tax ranging from EUR 2 to EUR 16.20 per square metre and other coefficients affecting the value of the property (e.g. location, use).

The principal tax on land is calculated by multiplying the square metres of the land by the principal tax ranging from EUR 0.0037 to EUR 9.2500 per square metre and other coefficients affecting the value of the property (e.g. location, use).

The supplementary tax on individuals is imposed at a progressive tax rate ranging from 0.15% to 1.15% and provides for a tax free amount of EUR 250,000 of the total value of property rights subject to ENFIA, including the value of plots outside urban planning (agricultural plots). Moreover, the value of property rights on buildings (including a potential analogy on the plots on which they are built) that have been characterised as maintained monuments or works of art and that have been built prior to the last 100 years is excluded.

Τhe supplementary tax on individuals was abolished by the provisions of L. 4916/2022 for the year 2022 onwards and replaced by an increase of the principal tax ranging from 5% to 20% according to the total value of the immovable property if it exceeds EUR 500,000.

According to the Law 2961/2001 (Code on Inheritance Tax, Donation Tax, and Parental Grant) as it exists today, tax is imposed to any asset acquired by inheritance, donation, and parental grant, acquired by an individual.

Inheritance Tax

Pursuant to the Greek tax legislation, Inheritance Tax is assessed on the current value of the property inherited. The said property includes any kind of movable and immovable property located in Greece, regardless of the descendant’s nationality. The taxable value of real estate property inherited is the 'objective value' (it is calculated on the basis of certain predetermined factors set by the Ministry of Finance) on the day of death of the deceased. Immovable assets located abroad are not subject to Greek Inheritance Tax, regardless of nationality and residency.

The tax rates are graduated and vary considerably, depending on the relationship between the deceased (inherited person) and the heir. Tax rates are based on a progressive scale. Relevant rates depend on the parties’ relationship (grade of relation, etc., and certain other factors - e.g. disabilities of the beneficiary); such rates range from 1% to 40%, while there is a tax-free amount (which depends on the proximity of the relationship). As a general rule, the closer the relationship the lower the tax rate. For example, in case of inheritance realised by individuals to their spouses or children (i.e. subject to A' category of the progressive scale), the respective rates range from 1% to 10%, while the tax-free amount is up to EUR 150,000.

Indicatively, the above mentioned tax category Α’ includes spouses, children, grandchildren, parents, and grandparents, category Β’ includes children from a spouse’s former marriage, parents-in-law, brothers, uncles, nephews etc., and category C’ includes distant relatives and non-relatives (blood or affinity relatives other than those referred to in the above-mentioned categories A’ and B’) as well as third parties.

Donation tax and parental grant

Donation tax and parental grant (i.e. transfer of assets while the transferor is alive) are assessed on the current value of the property donated. Taxable property includes any kind of movable and immovable property located in Greece. The tax rates are graduated and vary considerably, depending on the relationship between donor and donee. In general, tax liabilities arise upon receipt of gifts and are paid by the donee. The acquisition of real estate property through donation is subject to the same tax scale as inheritance tax. The respective tax return should be submitted to the competent Greek tax office before the signing of the contract.

In case of parental grants (i.e. donation between each parent and each child), the respective tax is imposed on the basis of the same tax progressive scale for category A’ (ranging from 1% to 10%), whereas a tax free amount of EUR 800,000 is provided by law.

Real estate transfer tax (Law 1587/1950)

Each transfer of real estate, which is not subject to VAT, is subject to real estate transfer tax. The real estate transfer tax is imposed at a rate of 3% on the taxable value of the property. Moreover, on the amount of main transfer tax is imposed an extra tax of 3% in favour of municipalities and communities.

Other duties

Municipality Duty (called Telos Akinitis Periousias or TAP)

According to the relevant law provisions, real estate ownership (i.e. ongoing taxation - taxes imposed on the possession of Greek real estate property) is subject to a Municipality Duty. The said duty is levied and collected annually through the electricity bill in favour of municipalities and communities at a currently calculated rate ranging between 0.25‰ and 0.35‰ on the real estate’s value (i.e. multiplying the real estate’s square metres by the specific value per square metre, depending on the area where the real estate property is situated [i.e. determined by the Ministry of Finance], and further multiplied by the rate deriving from the building age).

Duty for the provision of cleaning and lighting services

A duty in compensation for the collection of garbage and waste and for the lighting of the streets, collected by the electricity bill, is due from the user of real estate. According to the relevant law provisions, these duties are calculated by multiplying the real estate’s square metres by a certain rate determined by the municipal council.

Tax on electrified spaces

The municipal council may levy a tax on real estate connected to the grid, the collection of which is effected through the electricity bill. The tax is calculated by multiplying the real estate’s square metres by a rate determined by the municipal or community council ranging between EUR 0.018 and EUR 0.073. The said rate can be increased every year up to 20%.