Individual - Taxes on personal income

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)
First 10,000 9 900 10,000 900
Next 10,000 22 2,200 20,000 3,100
Next 10,000 28 2,800 30,000 5,900
Next 10,000 36 3,600 40,000 9,500
Above 40,000 44      

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)
First 12,000 15 1,800 12,000 1,800
Next 23,000 35 8,050 35,000 9,850
Above 35,000 45      

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.

Special solidarity contribution

By virtue of the above tax reform, the special solidarity contribution is incorporated in the 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
Above 220,000 10.0

Especially for 2020, pursuant to the provisions of article 298 of Law 4738/2020, the special solidarity contribution was abolished for all types of income, other than employment income and income from pensions. Furthermore, especially for 2021, the special solidarity contribution is abolished only for income from employment in the private sector.