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 2022.
By virtue of the above tax reform, the solidarity contribution is incorporated in the Income Tax Code (ITC), and its extraordinary character is abolished. Moreover, the contribution will be calculated based on the following progressive tax scale:
|Annual income (EUR)||Progressive rate (%)|
|0 to 12,000||0|
|12,001 to 20,000||2.2|
|20,001 to 30,000||5.0|
|30,001 to 40,000||6.5|
|40,001 to 65,000||7.5|
|65,001 to 220,000||9.0|
Especially for 2020, pursuant to the provisions of article 298 of Law 4738/2020, the solidarity contribution was suspended for all types of income, other than employment income and income from pensions. For tax year 2021, all individual income is exempt from the solidarity contribution, except for employment income from the public sector and pensions. For tax year 2022, only employment income from the private sector is exempt from the solidarity contribution.