Greece

Standard deductions

The Taxpayers may claim a reduction in income tax based on qualifying expenditures for personal living expenses incurred throughout the year.

• Individuals earning salaried or pension income up to EUR 12,000 are entitled to the following maximum tax reductions:

For taxpayers with salaried or pension income exceeding EUR 12,000, the tax reduction is progressively reduced by EUR 20 for each additional EUR 1,000 of income earned above this threshold. The tax reduction cannot exceed the taxpayer's actual tax liability. Where the calculated tax reduction surpasses the total tax due, the reduction is capped at the amount of tax payable.

• Expenses by Electronic Means of Payment

Taxpayers must annually incur expenses through electronic payments equal to 30% of their actual income from wages, pensions, business activity, and immovable property, capped at €20,000. Actual income excludes the special solidarity contribution and any electronically paid alimony to a former spouse, partner, or dependent child. If declared expenses fall below this threshold, 22% of the shortfall is added to the scale tax.

For tax years 2022 through 2026, individual taxpayers may deduct thirty percent (30%) of costs incurred for certain electronically paid services within Groups of Housing, Transportation, Services, Education etc. This deduction applies solely for income tax purposes and is allocated proportionally across income from wages, pensions, business activity, and immovable property. The deductible amount may not exceed 5,000 euros per year or the taxpayer's actual income from these sources.

Personal deductions

Taxable income is also calculated by deducting certain allowable expenses from gross income. The Greek Income Tax Code (ITC) contains specific provisions governing these deductions, which 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.