Income tax in Greece

If you are resident in Greece for tax purposes, you are taxed at progressive rates on your world-wide income earned in a calendar year. You may also be eligible for certain tax allowances, depending on your family situation, which are taken into account when calculating your taxable income, as well as the amount of tax you are liable to pay.

If you are employed, your employer will deduct income tax from your wages, daily allowances or other remuneration. The amount is imputed to your total tax bill for the year, which is calculated on the basis of your yearly income tax return. If more tax has been withheld than is in fact owed by you, you will be rebated the difference.

Your yearly income tax return should be sent to the Public Financial Offices (DOY) by 1 March of the tax year in question (in exceptional cases by 1 April, 16 April or 2 May for certain types of income explicitly referred to in tax law). You will be informed between May and June of the amount of tax that you have been assessed to pay. Married couples must file a joint tax return in which the tax, charges and contributions are calculated separately for each spouse. Husbands are obliged to submit a tax return for their wives.

A tax deposit is sometimes taken of an amount equal to 55% of your total tax bill for the current year. A deposit is not required when the amount due does not exceed €30, when your only income is from salaried employment and if you own your own home.

Your tax bill is payable in three equal instalments. You are, however, eligible for a 2.5% reduction on your total tax bill if you pay all your tax by the date on which the first payment is due, regardless of whether the tax is to be paid in one or more instalments. If you submit your tax return via the Internet, another 2.5% reduction on the total tax bill is granted up to a maximum of €118, regardless of the number of instalments.

If you are resident in Greece for tax purposes, you also have to include income earned in another Member State in your tax return (i.e. your world-wide income). If this income has already been taxed in the other country, you will be credited for that in your tax assessment in Greece. If the tax paid in the other country is higher than the corresponding Greek tax, you will not be rebated the difference.

Source: European Commission

http://ec.europa.eu