Greece

Individual - Tax administration

Last reviewed - 30 June 2020

Taxable period

No taxable years other than the calendar year are permitted.

Tax returns

The filing of tax returns of natural persons is effected only electronically (via the Internet).

Husbands and wives (legally married couples) up to the calendar year 2017 (inclusively) were liable to file a joint tax return, but the income of each spouse was taxed separately. However, the taxable income of one spouse from a business that is financially dependent on the other spouse is added to the taxable income of the other spouse. Taxable income of dependent children is added, with certain exceptions, to the parent who declares the higher total income. If the parents declare equal amounts of total income, the income of dependent children is added to the father’s taxable income. If there is no father, the income is added to the mother’s.

Nevertheless, by virtue of L.4583/2018 as of 1 January 2018 and onward, spouses may opt to file separate tax returns, following an irrevocable statement that should be submitted to the tax authorities by the end of February of the year following the year end. In the event of separate filings, the provisions related to taxable income of dependent children apply accordingly for the parent who reports the higher income.

For the purposes of the income tax return filing (single or joint), it is mandatory that the taxpayer(s) has obtained a Greek tax registration number. Non-Greek tax residents are required to file an annual income tax return only with the Greek tax office applicable for foreign residents. In this respect, they appoint against the Greek tax authorities, on a basis of a proxy document, a Greek tax resident as their representative. Legal entities are not allowed to be appointed as representatives.

The deadline for the submission of the Greek income tax returns for a tax year is set to 30 June of the following year.

Payment of tax

Income tax and special solidarity contribution are withheld from salaries and remitted to the tax office by the employer.

The WHT on salaries, wages, and pensions is calculated on the amount of monthly salary after being reduced by the employee’s share of social security contributions, multiplied by 14 (12 monthly salaries, plus one monthly salary for Christmas bonus, one-half monthly salary for Easter bonus, and one-half monthly salary for vacation bonus). This amount constitutes the employee’s annual net salary before income tax. The annual WHT is calculated on the basis of the personal income tax rates (see the Taxes on personal income section), taking into consideration the number of dependent children (see the Deductions section).

The employer must withhold 1/14 of this amount each month from the employee’s salary. The same amount of tax must be withheld from the Christmas bonus, while 1/2 (i.e. 1/28 of the annual tax) is the amount of tax that must be withheld from both the Easter and the vacation bonus. Overtime pay, bonuses, allowances, and additional benefits of any kind, as well as retroactive income, are subject to WHT at the rate of 20%. The final tax is computed with the year-end payroll clearance.

Annual income tax withholding on salaries, wages, and pensions is set off against the final income tax assessed on the basis of the individual income tax return. Any amounts withheld in excess of the annual income tax assessed are refunded.

If the taxpayer has income not subject to tax withholding at source (e.g. income from immovable property, freelance professions, or business/commercial activities), a tax prepayment of 100% on the current year’s income tax is assessed by the tax authorities and is paid together with the balance, if any, of the previous year. Only for the first year of tax return filing is such a tax advance payment reduced to 50%.

Statute of limitations

See Statute of limitations in the Tax administration section in the Corporate tax summary.