In principle, subject to relevant tax treaty provisions, income tax is payable by all individuals earning income in Greece, regardless of citizenship or place of permanent residence. Permanent residents are taxed on their worldwide income in Greece.
Benefits in kind are, in principle, subject to payroll withholding taxes (WHTs). However, as of 1 January 2015 and considering the difficulty in evaluating the taxable basis of such benefits at the time of their granting, no employment withholding is effected thereon. Instead, their value (since such benefits are taxable) is added to the employment income of the beneficiaries and taxed upon the assessment of their personal annual income tax return.
Personal income tax rates
As of 1 January 2013, income tax depends on the source of the income (e.g. employment, rental) and is calculated accordingly.
In addition, on 8 May 2016, the Law 'Unified Social Security System - Reform of insurance and pension system - Income taxation and gaming taxation regulations' has been adopted, introducing important amendments mainly to individual income taxation. Said law also constitutes a fundamental pension reform.
The tax scale applying to employment income, pensions, and business profits is illustrated below:
|Income tax scale (salaries, pensions, and business profits)|
|Amount of income (EUR*)||Tax rate (%)||Corresponding tax (EUR)||Total income (EUR)||Total tax (EUR)|
Real estate property
New tax rates and broadened tax basis applicable on income derived from real estate are introduced. In particular:
|Income tax scale (rental)|
|Amount of income (EUR)||Tax rate (%)||Corresponding tax (EUR)||Total income (EUR)||Total tax (EUR)|
An incentive is available pertaining to the upgrading of buildings as regards the energy efficiency, functionality, and aesthetics in case these have not or will not be included in a building upgrading programme. In detail, the income tax reduction equals 40% of the amount of the relative expenditure effected from 1 January 2020 to 31 December 2024.