Greece

Standard deductions

The income tax is reduced based on certain expenditures for annual personal living.

More specifically, as of 1 January 2020, the maximum amount of tax reduction (applicable to salaried and pension income) is EUR 777 for income up to the maximum of EUR 12,000 for a single person or for a married person with no dependents.

Furthermore, the tax reduction amounts to nine hundred (900) euros for a taxpayer with one (1) dependent child, one thousand one hundred and twenty (1,120) euros for two (2) dependent children, one thousand three hundred and forty (1,340) euros for three (3) dependent children, one thousand five hundred and eighty (1,580) euros for four (4) dependent children, and one thousand seven hundred and eighty (1,780) euros for five (5) dependent children. For each additional dependent child beyond the fifth, the tax reduction increases by two hundred and twenty (220) euros for each subsequent child. If the amount of tax is less than these amounts, the tax reduction is limited to the amount of the applicable tax. 

For salaried and pension income above EUR 12,000, the amount of tax deduction is reduced by EUR 20 for every EUR 1,000 of income.

With effect from 1 January 2020, the amount of expenditure required to be paid by electronic means is amended, and, instead of the applicable progressive computation, it should be equal to 30% of the actual income from salaried employment, pensions, and business. The amount of the annual expenditure is limited to EUR 20,000.

In the event that expenses incurred, which pertain to payments of personal income tax and ENFIA, loan obligations to financial institutions, and rent, exceed sixty percent (60%) of the actual income the required percentage of expenses is reduced to twenty percent (20%).

Note that the purchases of goods and receipt of services may include the majority of categories of goods and services, such as accommodation, food, clothing, car expenses, telecommunications, education, etc. In addition, said expenses should be incurred either in the Greek territory or in any European Union (EU) territory.

Personal deductions

Certain expenses are deducted from the gross income to reach taxable income. These deductible expenses, provided for by specific provisions of the Greek ITC, mainly include the following:

• Social security contributions mandatory by law.
• Donations and grants of specific instances and to restrictively listed bodies and organisations. The income tax reduction amounts to 20% of the value of donations to the extent that the total amount of donations during a tax year exceeds EUR 100,00 and do not exceed 5% of the taxable income.

Foreign taxpayers who qualify as non-Greek tax residents may enjoy the tax reliefs of Greek tax residents provided that they maintain their residence in an EU or European Economic Area (EEA) country and (i) generate at least 90% of their worldwide income in Greece or (ii) are able to prove that their taxable income is so low that they would be entitled to tax relief in their country.