EU membership gave Greece access to new loans at low rates from European financial institutions. To obtain them, the government of the country distorted statistical indicators for quite a long time, so data on the disastrous state of things in the economy became public only after 2009. As an emergency response, taxes in Greece had to be revised: the list, rates and administration.
The crisis of 2008 affected the whole world, but countries like Greece were hit especially hard by it also through the fault of their own government. The state, which was actively developing after the Second World War, began to sink into debt: in 2019, the amount of external borrowing exceeded 180%.
Do not contribute to reducing the tax burden and high social payments to vulnerable segments of the population. The attempt to reform the Greek tax system to become more business-friendly and reduce benefits only led to riots in the streets.
And yet in the background high stakes and increasing the number of contributions (for example, the introduction of a tax on tourists, new payments from owners of real estate and vehicles), the state has found a way to reduce the financial burden on businesses:
The basis of the tax grid in Greece is:
Owners commercial real estate or housing will face a range of contributions:
Citizens and foreign individuals are required to pay taxes on income received in Greece. At the same time, the higher the level of profit received, the big bet applies to her.
| Name | Bid | essence |
|---|---|---|
| Income tax in Greece, for employees | 22–43% | The exact amount of taxation of income of individuals (residents and non-residents) depends on the amount of annual income: up to 25,000 euros - only 22% (maximum tax 5,500 euros per year); up to 42,000 euros - already 32% (maximum payment to the budget 5,500 + 5,440 euros per year); over 42,000 euros per year - 43%. |
| Personal income tax from the self-employed and entrepreneurs | 26–33 % | The scale is also progressive: up to 50,000 euros - 26%; more than 50,000 euros - 33%. |
| Tax on income from the rental of movable and immovable property | 15–45 % | The same principle works here. The higher the annual income, the higher the percentage: up to 12,000 euros - 15%; difference up to 35,000 euros - 35%; everything above is 45%. |
| Tourist tax in Greece | from 0.25 to 4 euros per person | Introduced since 2018. Charged on foreigners visiting the country for tourism or business purposes. |
| Road tax | Fixed payment from 22 to 1,380 euros | The amount depends on the size of the engine and the age of the car. Everyone is subject to tax vehicles licensed in Greece. Paid in advance, that is, in 2018 for 2019. |
| Inheritance and gift collection | from 1 to 40% | Depends on the degree of relationship between the donor and the recipient of the gift (1–10% for close relatives, 40% for the rest). Calculated based on the appraised value of the property |
Due to the financial troubles of the state, taxes in Greece for individuals remain high. In 2016, this led ordinary Greeks to ignore their obligation to file tax returns and showed a strong willingness to refuse to pay taxes.
Against the backdrop of low incomes, high unemployment in the country and the threat of civil unrest, the government was forced to think about measures to revive the economy. The action plan included provisions for a phased reduction in the fiscal burden as early as 2019.
Unfortunately, one tax code Greece has not been optimally implemented, so each tax and fee is dedicated separate law(subject to amendments and additions).
| Name | Bid | essence |
|---|---|---|
| income tax | 28%, with the prospect of reducing to 25% | The new law adopted at the end of 2018 reduced the income tax rate from 29% to 28% already in 2019. It also outlines a schedule for reducing the future liability to 25% by 2022 (they will remove 1% annually) |
| VAT | 6,5–23 % | Integration into the world and European economic system requires Greece to maintain the level of VAT. The standard tax rate is 23%, preferential 13% are provided for essential products and services of self-employed professionals (doctors, writers, artists, etc.). The lowest rate is provided for the release of periodicals, pharmaceuticals and hotel services - only 6.5%. |
| Withholding tax | 0–33 % | At the maximum rate, income in the form of interest is taxed in favor of a non-resident. Of the amount of dividends in favor of a Greek resident, 10% is withheld. Construction contractors (3%) and recipients of internal royalties (0%) pay the least. |
| Stamp duty | 2,4–3,6 % | It is useful for payers to know what taxes in Greece are charged additionally when making transactions: insurance, loans and rent |
| Registration fee | 420 euros per year | Joint-stock companies registered with the Athens Chamber of Commerce and Industry pay |
If the company is registered outside the country, then in Greece its work will have the following features:
In Greece, there is no separate tax scale for those who have not received tax resident status, only additional fees are provided.
In order for additional taxation in Greece not to affect a foreigner, you must meet at least one of the following criteria:
A legal entity becomes a fiscal resident in case of registration in the country or if it can prove that its management takes place from Greek territory.
If none of the conditions are met, the payer will have to put up with the fact that taxes in Greece for non-residents are higher. In particular, the state will take 5% more from all income of individuals received in the country (an exception was provided only for EU citizens).
An interesting point: if 90% of all income of a non-resident is received in Greece, he has the right to apply all the benefits and deductions due to citizens and permanent residents.
Often Russian citizens acquire property with the intention of renting it out to tourists. If you need to understand how much the real estate tax in Greece will be for Russians. Since the Greek authorities do not distinguish between domestic or foreign commercial property buyers, the difference will only be visible upon payment income tax from the income from the rental of real estate. So, if for the Greeks maximum bet will be equal to 45%, then the owner from the Russian Federation will be forced to give exactly half of what he earns (45% + 5% for non-residents).
In the classical sense, land tax in Greece is not implemented. However, the owners of vacant plots of land are required to pay an annual fee for undeveloped plots in the amount of 0.03-0.09 euros for each square meter unused area.
In 2019, the list of additional contributions was replenished with a new type of payment from temporarily visiting foreigners. Moreover, a fee is taken from everyone who lives in hotels, rented apartments, furnished rooms or apartments, regardless of the purpose of their visit.
The size of the tourist tax in Greece depends on the category of housing: the highest rate is set in 5-star hotels (4 euros), the lowest - in furnished rooms and hostels (0.25 euros per day).
The Greek government has taken care of measures to avoid double taxation of incomes of its own and foreign citizens. Agreements have been concluded with all EU members to save investors' funds. In order for the recipient of income not to pay taxes twice, it is enough for him to provide a certificate of location permanent residence and confirmation of the fact of payment of tax in Greece or in another EU country if the profit is received abroad.
In addition to the EU, the Greeks have signed agreements with Russia, most of the post-Soviet countries, African South Africa and Egypt, the United States, India, Israel, China, Korea, Kuwait and Mexico.
Commercial organizations and entrepreneurs located in the Eastern Aegean, Dodecanese and Cyclades can pay VAT at 30% reduced rates (16%, 9% and 5% respectively).
When calculating personal income tax liabilities, individuals can exercise the right to deduct:
Contrary to expectations, the tax on living in Greece does not change depending on the season, as the climate encourages a year-round flow of tourists.
Organizations operating in Greece are required to file a tax and financial statements. Depending on the size of the business, financial statements must be submitted:
Fiscal fees and payments are administered by the Hellenic Tax Authority - Independent Authority government revenue (Ανεξάρτητης Αρχής Δημοσίων Εσόδων, ΑΑΔΕ
Organizations file income statements Form N at the same time. Enterprises report on the amount of VAT on a monthly basis using Form F2
Greece has long veered between two extremes: the need to reduce tax burden and find a way to increase the profitability of the budget. Obviously, raising taxes will not solve the problem here. Based on this, the authorities took the path of stepwise reduction of rates. And although, according to the assurances of the authorities, the peak of financial shocks is behind us, the state has not yet found an effective method of solving problems.
For example, in Italy the size of the accommodation tax varies from 2-7 euros per day, in Spain from 0.45-2.25 euros, and in Montenegro - 1 euro per day. In Serbia, the accommodation tax is 50-140.00 depending on the category of tourist destination.
The official answers of the Greek authorities to some questions:
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The payment of accommodation tax is introduced in hotels of 1-5 stars, as well as in other residential premises (apartments, rooms, separate villas), which receive guests on one or several days. In the camps, and in particular in certain categories, accommodation tax is not paid.
The residence tax is calculated as a fixed amount per day and per unit of accommodation, such as a room, but not per person.
The tax amount depends on the type of accommodation:
The residence tax is paid at the time of departure - immediately before departure. The owner or manager of the accommodation or hotel will give you a receipt that includes: date of issue, name of the person to whom the accommodation was issued, dates of stay, commission amount.
No. The fee is paid per accommodation unit per day, regardless of the number of people.
No. If the stay is extended within a few hours, this does not count as an additional stay and does not imply an obligation to pay a fee. However, if the length of stay is such that it ultimately results in the charge of an additional day of use of the room, then the accommodation tax will be charged.
ATHENS, January 1 - RIA Novosti, Gennady Melnik. From January 1, 2018, Greece introduces new tax for tourists - from 0.25 to 4 euros per night in a hotel, depending on its class.
The government hopes to increase the revenue side of the budget, in which tourism occupies a significant share, by more than 80 million euros through the new fee. However, hoteliers and tour operators believe that the new tax will hit the industry, reducing demand, reducing turnover and losing thousands of jobs.
In Greece, tourism provides about 20% of GDP, 1.3 million people are employed in the tourism industry. This year, according to forecasts of the Ministry of Tourism, about 30 million tourists will visit Greece, each of them left an average of 600 euros in the country.
The law that every tourist visiting Greece will pay extra for hotel accommodation was adopted back in May 2016, but it was decided to introduce the tax from January 1, 2018.
The "accommodation tax" is charged daily from the tourist for the use of the hotel room, rented apartment, furnished apartments.
Five-star hotel guests will be charged an additional 4 euros per night, four-star hotels - 3 euros, three-star hotels - 1.5 euros, and from hotels with one or two "stars" - 0.5 euros.
For renting one or two furnished rooms in an apartment or apartment, the fee will be 0.25 euros, for three rooms - 0.5 euros and for four-room apartments - 1 euro.
The fee was introduced along with a package of other tough measures to stabilize the Greek economy, which has been in deep crisis since 2009. International lenders set the condition for the allocation of the next tranches of loans to the country to pursue a policy of "belt tightening" and the adoption of austerity measures.
According to the Ministry of Finance, the new tax was supposed to give the budget an additional 84 million euros.
However, hoteliers and tour operators do not agree with this assessment. In their opinion, the very concept of such a tax is wrong, and in the face of fierce competition in the tourism market, it can reduce the attractiveness of Greece.
A study commissioned by the Chamber of Hellenic Hoteliers, Grant Thornton, says the "accommodation tax" will be the biggest blow to the competitiveness of the Greek tourism product, both in terms of price and quality, and in terms of employment. In the medium term, the damage to the Greek economy from its use and reduced demand from tourists is estimated at 435 million euros, which is almost five times the possible financial benefit. As a result, the introduction of a new fee will lead to the loss of almost 6.2 thousand jobs,
Although the fee will not exceed 4 euros per room per night, it will affect the level of fees. In a global market where prices are compared online, every euro counts, experts say.
"The tax itself is stupid. It is wrong from the outset. Four euros a day for a five-star hotel. Let's figure out what a five-star hotel means? There is a hotel that costs almost a thousand euros a day, and there is a hotel in Athens that you can rent and for 80 and 100 euros. It is strange that a tourist who pays a thousand euros per day will pay the same tax as a tourist who rented a room for 100 euros," Dimitris Haritidis, managing director of TEZ TOUR Greece, told RIA Novosti. .
According to him, some countries have tourist tax, which is immediately included in the price of the room, and the tourist does not see it, and there are no such problems. In Cyprus, such a fee is 1% of the cost of the tour, accommodation, it is included in the price, and the hotel then makes deductions to the state. There is such a fee in Italy, Spain.
"In Greece, the new fee will be paid by the tourist on the spot, when leaving the hotel," Haritidis said, adding that the fee will be charged per room, not per person.
Haritidis stressed that each tour operator is obliged to warn the tourist when buying a tour that the price does not include a tourist tax, and to name the amount. This is mandatory information, it should be in every contract, he added.
Haritidis also noted that so far the new fee has not affected the growth in sales of tours for the next year. "On the contrary, there is a huge increase in early booking sales from Western countries and from Russia," said a spokesman for the travel company.
“The entire tourism world tells the state that there will be damage, and the state responds - we see an increase in bookings, and so far we don’t see any damage,” he said.
Haritidis expressed hope that the collection will still be cancelled.
“The government said that this fee is temporary, it will be in the 2018-2019 season, and then it will be removed. Although I don’t believe it,” the expert noted.
From January 1, 2018, a mandatory tourist tax, which will be charged from all tourists when staying in a hotel or licensed apartments - separately from the price of the tour. With the details of the innovation - "Bulletin ATOR".
Despite all the negative assessments and forecasts for the decrease in the competitiveness of Greece as a tourist destination,. And be throughout the year, and not just.
So, from January 1, all foreign tourists in Greece will need to pay a tourist tax for each night of their stay - on the day of arrival or departure from the hotel. The amount of tax depends on the star rating of the hotel.
The hotel has the right to refuse accommodation if tourists have not paid the tourist tax.
The rates are as follows: for accommodation in a 5* hotel - 4 euros per day per room, in a 4* hotel - 3 euros per day per room, 3* - 1.50 euros per day per room, hotels 1* and 2* - 0, 50 euros per night per room.
In addition, those tourists who will live in apartments will have to fork out additionally. For apartments class 4 * - 1 euro per day, 3 * - 0.50 euros per day, 1 * and 2 * - 0.25 euros per day.
According to tour operators, organized tourists will pay the tax separately and independently. This fee is not included in the package price. “Tourists will pay on the spot at the hotel, like this, for example,” explained in.
According to the tour operator, on average, the new tax will lead to an increase in the price of 40 euros per tour. As emphasized by the company, "rather, it is more about temporary inconvenience, as tourists in Greece are not used to paying a fee."
Organized tourists will pay the tax separately and independently. This fee is not included in the package price
The Biblio-Globus company draws attention to the fact that the hotel has the right to refuse accommodation if tourists have not paid the tourist tax.
“It takes time for both hoteliers and tourists to get used to it. It should also be noted that in other European countries The practice of taxing tourists has been around for a long time. For experienced travelers the Greek fee will not be news,” experts say.
True, there may be exceptions: a number of Greek hotels of high categories have already announced their readiness to attribute the tourist tax to their own account. As explained in Mouzenidis Travel, we are talking mainly about 5 * Deluxe, Luxury hotels.
This information is also confirmed in: according to the tour operator, several Deluxe level hotels will not charge fees from guests, at the moment this list is being specified.
Mouzenidis Travel says that the list of hotels in which the tax fee is already included in the price will be known after the New Year holidays.
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