Starting January 1, 2009, Greece tightens its tax collection in key strategic areas of revenue generation:
- increased annual car registration tax
- new stocks and shares capital gains tax
- new income tax on lowest band of the self employed to cut rampant cheating by professionals and tradesmen.
In common with other developed economies, the Greek government faces a shortfall in tax revenues due to the slowdown in the world economy. Brits and Irish Ex-Pats, other foreign residents in Greece or any person or entity that generates income in the country are affected by new measures that are being introduced by the Greek tax authorities from 2009.
It is not all doom and gloom. In presenting to the Vouli (Greek Parliament) the new revenue-raising measures, the Greek Finance Minister, George Alogoskoufis signalled that individual and corporate income tax rates would likely decrease by 5% over the next five years.
Increased by 20 per cent for the year 2009.
(Remember: If tax is not paid by year end 2008, the fee is automatically doubled at time of payment.)
- A new 10% tax to be imposed on selling of any shares
- A new 10% tax on stock dividends.
Note: The existing 0.15% share transaction tax will be gradually phased out from 2009.
The first €10,500 euro band earning threshold by the self employed (including foreign residents), previously non-taxable, is now taxed at 10 per cent. The government says it has been forced to lower the tax threshold due to rampant declaration of income to just below the 10,500 euros level, thereby avoiding any tax payment. In a compensatory move, the tax man is offering incentives to clear tax debts by making it easier for professionals and tradesmen to pay off back taxes.
The Greek Finance Ministry says that it wants to see a fall in the overall tax burden. In a significant move to reach this target, corporate and the middle band of individual income tax, both 25% in 2008, are to be reduced to 20% by 2014, starting with a 1% cut in 2009.
More Useful Articles for Ex-Pats in Greece for Both UK and Greece Taxation - From Brits in Crete
- Advice on UK Tax Issues and how to Leave UK and leave your obligations behind!
- Impact of UK's 2008 Finance Act Changes on Brit Ex-Pats Working/Living Abroad
- Ex-Pats Living in Greece and/or with Property - Guide to Their Obligations to the Greek Tax Man.
- Greek Inheritance Tax 2006-2007 onwards Useful General Reference.
- Almost Total Abolition of Greek Inheritance Tax from 2008 onwards.
- Major Changes in Inheritance Tax from January 19, 2010 onwards.