JT Law Sydney offices (in 2010)
Any natural person, receiving income in Greece is obliged to pay taxes in Greece, regardless of his nationality or his residence. Additionally, regardless of his nationality, every natural person who receives income from abroad is obliged to pay taxes, if he resides in Greece.
The above apply with the reservation of the provisions of any treaty for the avoidance of double taxation, which has been executed between Greece and the country, where the Greek resident receives the income or the country where the foreigner who receives income in Greece resides.
Foreign residents are taxed for income that is received in Greece. In general, foreign residents are taxed under the same provisions of the Greek law as Greek residents, with several particularities applying for them. Therefore, obliged to file income tax statements in Greece, are people who reside abroad and receive income in Greece, actual or presumed (i.e. from purchase of properties, from building constructions, purchase of cars of high value in Greece, purchase of boats, etc … ), when their annual income is over €3,000 for the specific financial year.
In furtherance to the above, obliged to file income tax statements in Greece are those who receive agricultural income, regardless of being mainly farmers and of their total income.
In any case, regardless of receiving actual income in Greece, foreigners/Greeks residing abroad are obliged to file income statements in case that they:
• receive income from leasing real estate property and their income is over €600per year;
• acquire real estate properties in Greece or raise buildings;
• run their own business in Greece;
• purchase cars, boats in Greece;
• are members of a partnership (personal company); of a limited liability company; a joint venture; or a company of the Greek Civil Code which practices in Greece;
• are called to file income tax statements, upon the relevant notice of the competent Director of the competent Tax Authority;
• own in Greece one or more secondary residences (rural or not) of size of more than 150sq.m.;
• have acquired rights of full or naked ownership (remainder) or right of life estate ownership or right of residence on real estate properties within Greece. In such a case, the tax payers have to co-file with the income tax statement (E-1), a statement of real estate properties (E-9 document).
• changed their family or real estate property (i.e. when their real estate properties are conveyed; they acquire new property pieces under their names, in cases of death, divorce, etc … )
In cases of death of the tax payer, obliged to file income tax statements in Greece are the heirs of the deceased for income received by him until the time of his passing. In such a case, the heirs of the deceased are obliged to file joint income tax statements in Greece under the name of the deceased for income received until his passing.
For tax payers, who do not reside in Greece, the deadline for filing income tax statements in Greece is determined though the issuance of a Ruling of the Minister of Economics; such deadline expires usually in the beginning of May of each year.
Obliged to file income tax statements in Greece are the minor children for income received and taxed under their names (from their own work, from assets that the minor has acquired from inheritance, from gifts to the minor from people other than his parents, from pensions that the minor receives due to the death of his parent, etc.). This income is declared under the name of the minor child and is taxed under his name, by filling a tax statement under the name of the child, signed by the father of the minor. If the father has passed away, the statement is signed by the minor's mother or by another person who has the child's custody.
All the above procedures for the fulfilment of the tax obligations regarding your Greek property, can be accomplished through a limited Power of Attorney to specialised lawyers in Greece, like our Law Firm.