Tax Guide for Greece
Educational overview of the tax system and social contributions. This guide provides general information for learning purposes.
Income Tax
Income tax in Greece typically follows a progressive structure, meaning higher income levels are taxed at higher rates. The system applies to various income sources including employment, self-employment, and investment income.
General Principles
- Progressive tax brackets based on annual income
- Different rates for different income levels
- Deductions and allowances may apply
- Annual tax returns required for most taxpayers
Social Security Contributions
Social security contributions fund healthcare, pensions, and other social benefits. Both employees and employers typically contribute, with rates varying by employment status and income level.
Key Points
- Mandatory for employed and self-employed individuals
- Rates typically range from 13-16% for employees
- Self-employed may have different contribution structures
- Contributions provide access to healthcare and pension benefits
Value Added Tax (VAT)
VAT is a consumption tax applied to most goods and services. Different rates apply to different categories of products and services.
Common VAT Rates
| Rate | Category | Examples |
|---|---|---|
| 24% | Standard | Most goods and services |
| 13% | Reduced | Food, beverages, energy |
| 6% | Super Reduced | Books, medicines, cultural events |
| 0% | Zero | Certain exports and specific services |
Property Tax
Property owners may be subject to various property-related taxes based on the value, location, and use of their real estate. These taxes help fund local services and infrastructure.
Considerations
- Based on property value and characteristics
- Annual assessment and payment
- Different rates for primary residence vs. investment property
- Additional taxes may apply for luxury properties
Tax Filing and Compliance
Understanding your tax obligations and filing requirements is essential for compliance. Most individuals and businesses must file annual tax returns.
Important Points
- Annual tax returns typically due in specific filing periods
- Electronic filing systems available
- Keep records of income and expenses
- Penalties may apply for late filing or non-compliance
- Professional tax advisors can help with complex situations