Expert Tips for Filing Taxes as a Remote Worker in Greece

Table of Contents

• Introduction
• Understanding the Greek Tax System
• Determining Your Tax Residency Status
• Types of Income for Remote Workers
• Deductions and Allowances for Remote Workers
• Filing Your Tax Return in Greece
• Double Taxation Agreements
• Social Security Contributions
• Tax Planning Strategies for Remote Workers
• Common Mistakes to Avoid
• Seeking Professional Help
• Conclusion
• FAQs

Introduction

As the world of work continues to evolve, more and more professionals are embracing the flexibility and freedom of remote work. Greece, with its stunning landscapes, rich culture, and Mediterranean lifestyle, has become an increasingly popular destination for digital nomads and remote workers. However, navigating the complexities of filing taxes as a remote worker in Greece can be challenging. This comprehensive guide will provide you with expert tips and insights to help you understand and manage your tax obligations effectively.

Understanding the Greek Tax System

Before delving into the specifics of filing taxes as a remote worker, it’s crucial to have a basic understanding of the Greek tax system. Greece operates on a progressive tax system, meaning that the tax rate increases as your income rises. The tax year in Greece runs from January 1st to December 31st, and tax returns are typically due by June 30th of the following year.

The Greek tax system is administered by the Independent Authority for Public Revenue (IAPR), which is responsible for collecting taxes and enforcing tax laws. As a remote worker, you’ll need to familiarize yourself with the relevant tax regulations and ensure compliance to avoid penalties and legal issues.

Determining Your Tax Residency Status

One of the most critical factors in determining your tax obligations in Greece is your tax residency status. Your status will affect the extent to which you are liable for taxes in Greece and may also impact your tax obligations in your home country.

In Greece, you are considered a tax resident if:

• You spend more than 183 days in Greece during any calendar year
• Your center of vital interests (e.g., personal, economic, or social ties) is in Greece
• You are a Greek national working for the Greek government abroad

If you meet any of these criteria, you will generally be considered a tax resident of Greece and will be subject to taxation on your worldwide income. If you don’t meet these criteria, you may be considered a non-resident for tax purposes and will only be taxed on income sourced from Greece.

Types of Income for Remote Workers

As a remote worker in Greece, you may have various sources of income that need to be reported on your tax return. Some common types of income include:

1. Employment Income

If you’re employed by a company based outside of Greece, your salary will still be subject to Greek income tax if you’re considered a tax resident. You’ll need to report this income on your Greek tax return, even if taxes have been withheld in another country.

2. Self-Employment Income

Many remote workers operate as freelancers or independent contractors. In Greece, this type of income is considered self-employment income and is subject to both income tax and social security contributions.

3. Passive Income

If you earn income from investments, rental properties, or other passive sources, this will also need to be reported on your Greek tax return. The tax treatment may vary depending on the type of passive income.

Deductions and Allowances for Remote Workers

Understanding the deductions and allowances available to remote workers in Greece can help you minimize your tax liability. Some key deductions to consider include:

• Home office expenses: You may be able to deduct a portion of your rent, utilities, and internet costs if you use part of your home exclusively for work.
• Equipment and supplies: Expenses related to work equipment, such as computers, software, and office supplies, are generally deductible.
• Professional development: Costs associated with training, courses, and conferences relevant to your work may be tax-deductible.
• Travel expenses: If you travel for work purposes, these expenses may be deductible, even if you’re working remotely.
• Health insurance premiums: Contributions to the Greek social security system (EFKA) are generally tax-deductible.

It’s important to keep detailed records and receipts for all expenses you plan to claim as deductions. The Greek tax authorities may request supporting documentation during an audit.

Filing Your Tax Return in Greece

Filing your tax return in Greece as a remote worker involves several steps:

1. Obtain a Greek tax identification number (AFM): This is essential for filing your tax return and managing your tax affairs in Greece.
2. Register for the TAXISnet system: This online platform is used for submitting tax returns and accessing other tax-related services.
3. Gather necessary documentation: Collect all relevant income statements, receipts for deductible expenses, and any other financial records.
4. Complete and submit your tax return: Use the TAXISnet system to file your return electronically by the deadline (usually June 30th).
5. Pay any taxes due: If you owe additional taxes, you’ll need to pay them according to the payment schedule provided by the tax authorities.

It’s crucial to file your tax return accurately and on time to avoid penalties and interest charges. If you’re unsure about any aspect of the filing process, consider seeking professional assistance.

Double Taxation Agreements

As a remote worker, you may find yourself in a situation where you’re potentially liable for taxes in both Greece and another country. To prevent double taxation, Greece has signed Double Taxation Agreements (DTAs) with numerous countries. These agreements determine which country has the right to tax different types of income and provide mechanisms for claiming tax credits to avoid paying taxes twice on the same income.

If you’re working remotely for a company based in another country or have income sources outside of Greece, it’s essential to review the relevant DTA and understand how it applies to your situation. This may involve claiming foreign tax credits or exemptions on your Greek tax return.

Social Security Contributions

In addition to income tax, remote workers in Greece are generally required to make social security contributions to the Unified Social Security Fund (EFKA). The amount of these contributions depends on various factors, including your income level and whether you’re employed or self-employed.

For self-employed individuals, social security contributions are calculated based on your net income and can be quite substantial. It’s important to factor these costs into your financial planning and budgeting as a remote worker in Greece.

Tax Planning Strategies for Remote Workers

Effective tax planning can help you optimize your tax situation as a remote worker in Greece. Some strategies to consider include:

• Timing of income recognition: If possible, consider deferring income to a future tax year or accelerating expenses to reduce your current year’s tax liability.
• Structuring your business: Depending on your circumstances, it may be beneficial to operate as a sole proprietor or set up a Greek company.
• Utilizing tax-advantaged accounts: Explore options for tax-efficient savings and investments within the Greek tax system.
• Claiming all eligible deductions: Ensure you’re taking advantage of all available deductions and credits to minimize your tax burden.
• Staying informed about tax law changes: Keep up-to-date with any changes to Greek tax laws that may affect remote workers.

Common Mistakes to Avoid

When filing taxes as a remote worker in Greece, be aware of these common pitfalls:

• Misunderstanding tax residency rules: Failing to correctly determine your tax residency status can lead to compliance issues.
• Overlooking foreign income reporting: Ensure you report all worldwide income if you’re a Greek tax resident.
• Neglecting to keep accurate records: Maintain detailed financial records and receipts to support your tax return.
• Missing filing deadlines: Late filing can result in penalties and interest charges.
• Underestimating social security obligations: Factor in social security contributions when budgeting for your tax liabilities.
• Failing to seek professional advice: Complex tax situations may require expert guidance to ensure compliance and optimize your tax position.

Seeking Professional Help

Given the complexities of filing taxes as a remote worker in Greece, it’s often advisable to seek professional assistance. A qualified tax advisor or accountant with experience in international taxation can help you:

• Understand your tax obligations in Greece and any other relevant jurisdictions
• Optimize your tax position through effective planning strategies
• Ensure compliance with Greek tax laws and regulations
• Navigate the intricacies of double taxation agreements
• Prepare and file your tax return accurately and on time
• Represent you in case of any inquiries or audits by the Greek tax authorities

While there may be a cost associated with professional tax services, the potential savings and peace of mind can often outweigh the expense, especially for those with complex financial situations.

Conclusion

Filing taxes as a remote worker in Greece presents unique challenges and opportunities. By understanding the Greek tax system, determining your tax residency status, and familiarizing yourself with the various types of income and deductions relevant to remote workers, you can navigate the tax landscape more effectively. Remember to stay informed about tax law changes, maintain accurate records, and consider seeking professional advice when needed.

With careful planning and attention to detail, you can fulfill your tax obligations while potentially optimizing your tax position. This allows you to focus on enjoying the many benefits of working remotely from Greece, including its rich culture, beautiful landscapes, and high quality of life.

FAQs

1. Do I need to pay taxes in Greece if I’m working remotely for a foreign company?

If you’re considered a tax resident of Greece (e.g., spending more than 183 days in the country), you’ll generally need to pay taxes on your worldwide income, including income from foreign sources. However, you may be able to claim foreign tax credits to avoid double taxation.

2. Can I deduct my home office expenses as a remote worker in Greece?

Yes, you may be able to deduct a portion of your home office expenses, such as rent, utilities, and internet costs, if you use part of your home exclusively for work. Keep detailed records and consult with a tax professional to ensure you’re claiming these deductions correctly.

3. How do I obtain a Greek tax identification number (AFM)?

To obtain an AFM, you’ll need to visit your local tax office (DOY) with your passport, proof of address in Greece, and any relevant work or residency permits. You may also need to provide additional documentation depending on your specific situation.

4. What are the tax rates for remote workers in Greece?

Greece has a progressive tax system with rates ranging from 9% to 44% for employment and business income. The specific rate you’ll pay depends on your total taxable income. It’s important to note that there are also solidarity contribution taxes for higher incomes and social security contributions to consider.

5. How often do I need to file tax returns in Greece?

Tax returns in Greece are typically filed annually, with the deadline usually set for June 30th of the year following the tax year. However, if you’re self-employed or have certain types of income, you may also need to make advance tax payments throughout the year.

Article reviewed by Aino Koskinen, Business Growth Consultant | Scaling Companies with Data-Driven Strategies, on March 1, 2025