Understanding the Role of Greek Tax Authorities: What Every Expat Should Know

Table of Contents

1. Introduction to Greek Tax Authorities
2. The Structure of Greek Tax Authorities
3. Key Responsibilities of Greek Tax Authorities
4. Tax Registration Process for Expats
5. Types of Taxes in Greece
6. Filing Tax Returns in Greece
7. Tax Audits and Investigations
8. Penalties and Fines for Non-Compliance
9. Tax Treaties and Double Taxation Agreements
10. Tips for Expats Dealing with Greek Tax Authorities
11. Recent Reforms and Future Outlook
12. Conclusion
13. FAQs

1. Introduction to Greek Tax Authorities

For expats living in Greece, understanding the role of Greek tax authorities is crucial for ensuring compliance with local tax laws and regulations. The Greek tax system, while complex, is an essential part of the country’s fiscal structure, and navigating it successfully is key to a smooth expatriate experience. This comprehensive guide aims to provide expats with valuable insights into the workings of Greek tax authorities, their responsibilities, and what to expect when dealing with them.

The Greek tax system is overseen by the Independent Authority for Public Revenue (IAPR), which was established in 2017 as part of Greece’s efforts to modernize its tax administration and improve efficiency. The IAPR operates independently from the Ministry of Finance but works closely with other government agencies to ensure proper tax collection and enforcement.

2. The Structure of Greek Tax Authorities

To better understand how Greek tax authorities function, it’s important to familiarize yourself with their organizational structure:

2.1 Independent Authority for Public Revenue (IAPR)

The IAPR is the primary body responsible for tax administration in Greece. It operates under the supervision of the Ministry of Finance but maintains operational independence. The IAPR’s main objectives include:

• Implementing tax policies
• Collecting taxes and other public revenues
• Combating tax evasion and smuggling
• Providing services to taxpayers

2.2 Regional Tax Offices

Greece is divided into several administrative regions, each with its own tax office. These regional offices are responsible for handling tax-related matters within their jurisdiction, including:

• Processing tax returns
• Conducting audits
• Providing local taxpayer support
• Collecting taxes and enforcing penalties

2.3 Specialized Departments

Within the IAPR, there are specialized departments that focus on specific aspects of tax administration:

• Large Taxpayers Unit: Handles tax affairs of large corporations and high-net-worth individuals
• Tax Audit Department: Conducts in-depth tax audits and investigations
• International Economic Relations Department: Deals with international tax matters and treaties
• E-Governance Department: Manages online tax services and digital infrastructure

3. Key Responsibilities of Greek Tax Authorities

Greek tax authorities have a wide range of responsibilities that impact expats living in the country. Understanding these responsibilities can help you navigate the tax system more effectively:

3.1 Tax Collection and Enforcement

The primary function of Greek tax authorities is to collect taxes and ensure compliance with tax laws. This includes:

• Processing tax returns and payments
• Issuing tax assessments
• Enforcing collection of unpaid taxes
• Implementing tax policies set by the government

3.2 Taxpayer Services and Support

Greek tax authorities are also responsible for providing services and support to taxpayers, including:

• Offering guidance on tax laws and regulations
• Providing information on tax filing procedures
• Assisting with tax-related inquiries and issues
• Maintaining online tax portals and services

3.3 Audits and Investigations

To ensure compliance and prevent tax evasion, Greek tax authorities conduct audits and investigations. This includes:

• Selecting taxpayers for audit based on risk assessment criteria
• Conducting thorough examinations of financial records
• Investigating suspected cases of tax fraud or evasion
• Collaborating with international tax authorities on cross-border tax matters

4. Tax Registration Process for Expats

As an expat in Greece, one of your first interactions with Greek tax authorities will be during the tax registration process. Here’s what you need to know:

4.1 Obtaining a Tax Identification Number (AFM)

All residents in Greece, including expats, are required to obtain a Tax Identification Number (AFM – Αριθμός Φορολογικού Μητρώου). To obtain an AFM, you’ll need to:

• Visit your local tax office (DOY – Δημόσια Οικονομική Υπηρεσία)
• Present your passport and residence permit
• Provide proof of address in Greece
• Complete the necessary application forms

4.2 Registering for TAXISnet

TAXISnet is the online platform used for filing tax returns and accessing various tax-related services. After obtaining your AFM, you should register for TAXISnet by:

• Visiting the TAXISnet website
• Completing the online registration form
• Verifying your identity through the provided methods
• Receiving your login credentials

5. Types of Taxes in Greece

Expats in Greece should be aware of the various types of taxes they may be subject to:

5.1 Income Tax

Income tax is levied on all forms of income, including employment, self-employment, rental income, and capital gains. The tax rates are progressive, ranging from 9% to 44% for individuals. As an expat, you’ll be taxed on your worldwide income if you’re considered a tax resident in Greece (staying for more than 183 days in a calendar year).

5.2 Property Tax

If you own property in Greece, you’ll be subject to the Unified Property Tax (ENFIA), which consists of a main tax and a supplementary tax. The amount is calculated based on the property’s value, location, and other factors.

5.3 Value Added Tax (VAT)

VAT is applied to most goods and services in Greece. The standard rate is 24%, with reduced rates of 13% and 6% for certain categories of goods and services.

5.4 Social Security Contributions

If you’re employed in Greece, both you and your employer will need to make social security contributions. The rates vary depending on the type of work and industry.

6. Filing Tax Returns in Greece

Understanding the tax filing process is crucial for expats living in Greece. Here’s what you need to know:

6.1 Annual Tax Return Deadline

The Greek tax year runs from January 1 to December 31. Tax returns are typically due by June 30 of the following year, although extensions may be granted in some cases. It’s important to note that even if you have no taxable income in Greece, you may still be required to file a tax return.

6.2 Online Filing through TAXISnet

Tax returns in Greece are filed electronically through the TAXISnet platform. The process involves:

• Logging into your TAXISnet account
• Selecting the appropriate tax return form
• Filling in the required information
• Uploading any necessary supporting documents
• Submitting the completed return

6.3 Required Documentation

When filing your tax return, you may need to provide various documents, including:

• Proof of income (e.g., salary statements, invoices for self-employed individuals)
• Bank statements
• Receipts for deductible expenses
• Property ownership documents
• Certificates of tax residency from other countries (if applicable)

7. Tax Audits and Investigations

Greek tax authorities conduct regular audits to ensure compliance with tax laws. As an expat, it’s important to be prepared for the possibility of a tax audit:

7.1 Selection Criteria for Audits

Tax audits in Greece are typically based on risk assessment criteria, which may include:

• Discrepancies in reported income and expenses
• Significant changes in income or assets from year to year
• Random selection for routine checks
• Specific industry or sector-focused audits

7.2 Audit Process

If selected for an audit, you can expect the following steps:

• Notification of the audit by the tax authorities
• Request for specific documents and information
• On-site visits or office interviews with tax auditors
• Review of financial records and tax returns
• Issuance of audit findings and potential reassessment of taxes

7.3 Rights and Obligations During an Audit

During a tax audit, you have certain rights and obligations:

• Right to be informed about the scope and duration of the audit
• Right to professional representation (e.g., tax advisor or lawyer)
• Obligation to provide accurate and complete information
• Right to appeal audit findings if you disagree

8. Penalties and Fines for Non-Compliance

Greek tax authorities impose various penalties for non-compliance with tax laws. It’s crucial for expats to be aware of these potential consequences:

8.1 Late Filing Penalties

Failing to file your tax return by the deadline can result in penalties, typically calculated as a percentage of the tax due. The penalty increases the longer the delay in filing.

8.2 Late Payment Penalties

If you fail to pay your taxes on time, you may face late payment penalties and interest charges. These can accumulate quickly, so it’s important to pay your taxes promptly.

8.3 Penalties for Inaccurate Information

Providing false or inaccurate information on your tax return can lead to significant penalties, including fines and potential criminal charges in severe cases of tax evasion.

9. Tax Treaties and Double Taxation Agreements

Greece has signed numerous tax treaties with other countries to prevent double taxation and facilitate international tax cooperation. As an expat, understanding these agreements is crucial:

9.1 Purpose of Tax Treaties

Tax treaties serve several purposes, including:

• Preventing double taxation on the same income
• Determining which country has the right to tax specific types of income
• Providing mechanisms for resolving tax disputes between countries
• Facilitating information exchange between tax authorities

9.2 Claiming Treaty Benefits

To claim benefits under a tax treaty, you may need to:

• Obtain a certificate of tax residency from your home country
• Submit specific forms to Greek tax authorities
• Provide documentation supporting your eligibility for treaty benefits

10. Tips for Expats Dealing with Greek Tax Authorities

Navigating the Greek tax system can be challenging for expats. Here are some tips to help you deal effectively with Greek tax authorities:

10.1 Stay Informed and Compliant

• Keep up-to-date with changes in Greek tax laws and regulations
• Maintain accurate records of your income, expenses, and financial transactions
• File your tax returns and pay your taxes on time
• Seek professional advice if you’re unsure about your tax obligations

10.2 Communication and Language

• Learn basic Greek tax-related terminology to facilitate communication
• Consider hiring a translator or tax advisor fluent in both Greek and your native language
• Use official channels for communication with tax authorities, such as registered mail or official online platforms

10.3 Seek Professional Assistance

• Consider hiring a Greek tax advisor or accountant familiar with expat tax issues
• Consult with international tax specialists if you have complex cross-border tax situations
• Join expat communities or forums to share experiences and get advice from others in similar situations

11. Recent Reforms and Future Outlook

The Greek tax system has undergone significant reforms in recent years, aimed at improving efficiency and reducing tax evasion. Some notable changes include:

• Digitalization of tax services and increased use of electronic filing
• Implementation of a more robust audit selection process
• Efforts to simplify the tax code and reduce bureaucracy
• Enhanced cooperation with international tax authorities

Looking ahead, expats can expect continued efforts to modernize the Greek tax system, with a focus on:

• Further digitalization and automation of tax processes
• Increased use of data analytics for tax compliance and auditing
• Potential adjustments to tax rates and incentives to attract foreign investment
• Ongoing alignment with EU tax directives and international standards

12. Conclusion

Understanding the role of Greek tax authorities is essential for expats living in Greece. By familiarizing yourself with the structure of the tax system, your obligations, and the various processes involved, you can ensure compliance and avoid potential issues. Remember that the Greek tax landscape is complex and subject to change, so staying informed and seeking professional advice when needed is crucial.

As an expat, it’s important to approach your tax responsibilities proactively. Maintain accurate records, file your returns on time, and don’t hesitate to seek clarification from the tax authorities or professional advisors when you’re unsure about any aspect of your tax situation. By doing so, you’ll be better equipped to navigate the Greek tax system and focus on enjoying your expat experience in this beautiful Mediterranean country.

13. FAQs

Q1: Do I need to file a tax return in Greece if I’m only living there part-time?

A1: If you spend more than 183 days in Greece during a calendar year, you’re considered a tax resident and must file a tax return. Even if you spend less time, you may still need to file if you have Greek-source income.

Q2: Can I file my Greek tax return in English?

A2: No, Greek tax returns must be filed in Greek. If you’re not fluent in Greek, it’s advisable to seek assistance from a bilingual tax professional or translator.

Q3: How long should I keep my tax records in Greece?

A3: Generally, you should keep your tax records for at least five years from the end of the financial year to which they relate. However, in some cases, it may be advisable to keep them for longer.

Q4: What happens if I make a mistake on my Greek tax return?

A4: If you realize you’ve made a mistake, you can file an amended return. It’s best to do this as soon as possible to minimize potential penalties. If the tax authorities discover the error first, you may face higher penalties.

Q5: Can I pay my Greek taxes from a foreign bank account?

A5: Yes, you can pay your Greek taxes from a foreign bank account. However, you’ll need to ensure that the payment includes all necessary reference information and that you account for any bank fees to ensure the full amount reaches the Greek tax authorities.

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