Greece

Employment income

Greek tax residents are taxed on their worldwide income irrespective of the country where such income has been generated, paid, or remitted.

Non-resident aliens are taxed on salary earned for work performed in Greece, regardless of where payment is made and regardless of where it is remitted. They are not taxed to the extent their compensation relates to services performed outside of Greece.

All fringe benefits are normally considered taxable income for the employee and hence treated as such.

Board of Directors fees/remunerations paid to Board Members are considered as salaried income and are taxed based on the respective income tax scale for salaried services.

Equity compensation

Provisions for stock option plans (SOPs) and free shares

Benefit arising from SOPs shall be exempt from salaried income taxation and will be taxed at the time of their sale as capital gains at a rate of 15%, provided they are held for at least 24 months. Should the SOPs not be held for at least 24 months, the relative income will continue to be taxed as salary income. In case SOPs relate to small start-up entities, they are taxed at a rate of 5%, provided that they are held for at least 36 months, under conditions. 

Moreover, the favourable tax treatment with the taxation of 15% applies for free shares granted to employees under incentives programs (e.g. Restricted Stock Units [RSUs], performance shares or performance units, restricted shares plan, matching shares or employee stock purchase plan, deferred stock.) to the extent that are inextricably linked with the achievement of specific required performance milestones or the occurrence of an event (e.g. completion of a specific employment period). According to the new Law, the taxable event arises at the time the free shares are actually sold and not at the time of their acquisition as happened before. In addition, for free shares there is no retention period.

Notional income

Unlike real income, notional income is calculated based on the taxpayer's living expenses and those of dependents. These calculations consider two main categories: objective expenditures on goods and services (such as dwellings, vehicles, private schools, auxiliary staff, pleasure craft, aircraft, and swimming pools) and expenditure on asset acquisition (including purchases or leasing of vehicles, vessels, aircraft, real estate, businesses, shares, securities, loan grants, and donations). Under Article 30 of Law 4172/2013 (CIT), when a taxpayer's presumed income exceeds total real income, the difference is added to taxable income and taxed accordingly, attributed to income from wages and pensions, business activity, or agricultural business activity.

Business income

The separate taxation of income from freelancers and sole proprietorships is abolished (see the Taxes on personal income section). Instead, a unified tax scale applicable to employment income, pensions, and business profits is introduced.

Capital gains

Capital gains arising from the transfer of a business or certain securities are subject to taxation at a rate of 15%. The securities covered under this rate include non-listed shares in a company, listed shares and other securities where the transferor holds at least 0.5% of the share capital, shares or interests in private companies and partnerships, government bonds, treasury bills, corporate bonds, and derivative financial products.

Certain capital gains are exempt from taxation. These exemptions apply to gains from the transfer of listed shares and securities when the transferor holds less than 0.5% of the share capital, as well as gains from Greek and EU/EEA UCITS (Mutual Funds). Additionally, the taxation of capital gains on the transfer of immovable property has been suspended until 31 December 2026 pursuant to Article 90 of Law 5162/2024.

Furthermore, sales of shares listed on a regulated market or multilateral trading facility operating in Greece under Law 4514/2018 (Government Gazette A'14) are subject to a sales tax at a rate of one per thousand (1‰) pursuant to Article 50 of Law 5073/2023. This tax applies regardless of whether the transactions are executed within or outside these trading venues.

Dividend income

Dividends are subject to a withholding tax of five percent (5%).

Dividends include any income derived from shares, founders' titles, or other profit-participating rights that do not constitute debt-claims. Dividends also include income from other corporate rights, such as shares, dividend payments, prepayments and mathematical reserves, participations in the profits of personal enterprises, profit distributions by any legal person or legal entity, and any other related distributions.

Where dividends are subject to this withholding tax, the tax satisfies the taxpayer's full tax liability only in the case of individuals and only with respect to this particular category of income.

Interest income

Interests are subject to a withholding tax of fifteen percent (15%). If interests are subject to withholding tax, the withholding tax exhausts the tax liability only for individuals and for the specific type of income of the taxpayer.

Non-residents are exempt from the withholding tax (WHT) where the deposit is kept in foreign currency.

The tax rate applicable for interest income earned as of 11 April 2025 by Greek tax resident individuals from listed corporate bonds is reduced to 5% (instead of 15%, which was the previously applicable tax rate).

Interests on bond loans and promissory notes of the Greek State acquired by individuals are exempt from income tax.

Rental income

Income from real estate property is taxed at separate rates (see the Taxes on personal income section).