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Corporate Taxes in Greece in 2022-23: Complete Guide

Non-resident companies have to pay corporate taxes in Greece from the revenue generated from sources within the nation. The standard Greece corporate tax rate is 22%.

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Corporate Taxes In Greece

All individuals as well as corporations are subjected to pay the Greece Corporate taxes. Resident and non-resident organizations have to pay corporate taxes in Greece at the standard rate. Organizations that are residents must pay the corporate tax rate in Greece on their global revenue.

corporate taxes in greece

Non-resident companies have to pay corporate taxes in Greece from the revenue generated from sources within the nation. The standard Greece corporate tax rate is 22%. 

This article will talk about the various corporate taxes in Greece. It will further discuss the corporate tax rate in Greece that residents as well as non-resident organizations are liable to pay.

Various Corporate Taxes in Greece

various corporate taxes in greece

Any business established in Greece is supposed to pay various business taxes in Greece. This section of the article will describe the numerous Greece corporate taxes.

1. Corporate Income Tax (CIT) in Greece

  • With the exception of credit organizations, the Greece corporate tax rate is assessed at a fixed rate of 22%, which was lowered from 24% in the year 2021. 
  • Additionally, credit institutions are subject to a 29% tax. Corporations that are residents have to pay taxes on their global profits, but non-resident companies pay taxes just on their Greek profits. 
  • Earnings from Controlled Foreign Companies (CFCs) are likewise subject to income tax in Greece. A CFC is a non-Greek business in which a Greek tax resident owns a majority ownership.

2. Value-Added Tax in Greece 

  • Value-added tax in Greece is another one of the crucial corporate taxes in Greece. All products and services in the nation are subject to VAT. 
  • The typical VAT rate is 24 percent. Healthy produced foods, non-alcoholic drinks, aerated drinks, regular food items, as well as hotel meal services, etc are all subject to a lower VAT rate of 13%.
  • For drugs of CN3003 and 3004 and vaccines of CN3002 designed for medical treatment, a lowered Greece corporate tax rate of 6% is applicable. Among other things, the 6% rate likewise applies to the provision of electricity, gas, water, etc.

3. Customs Duties

Customs duties apply to a large number of items brought into Greece from outside the European Union. The Common Customs Tariff of the EU stipulates the tariff rates.

4. Excise Duty

Power and electricity-related goods are subject to excise duties, as are produced tobacco, liquor drinks, coffee, liquids for e-cigarettes, and the tobacco used throughout electrical heating tobacco goods. Based on the type of goods, there are several tax rates.

5. Real Estate Transfer Tax

Any real estate transaction that isn’t subject to VAT requires the payment of real estate transfer tax. The assessed worth of the properties is levied to a real estate transfer tax at a rate of 3% (which is then enhanced by a local surcharge to a final rate of 3.09%).

6. Stamp Duty

  • Non-residential property leases are liable to a 3.6% stamp duty. 
  • Generally, there may be a 2.4% stamp duty on borrowing and interest. 
  • There are a few exemptions, with the primary one pertaining to financial institutions and bond financings.

7. Property Ownership Tax (ENFIA)

  • ENFIA, or property ownership tax, is computed similarly to individual income tax. Companies must pay an additional tax of 0.55% of their land rights, though. 
  • The additional tax rate is 0.1% is applicable, if the property is utilized to produce goods or carry out any kind of commercial operation.
  • A special real estate tax, or SRET, is imposed on some businesses that hold real estate. It is assessed yearly at a rate of 15% of the worth of the target property investment, but some types of enterprises are exempted from this tax.

8. Social security contributions

  • Social security contributions are owed on wages and incentives paid out in cash or in kind to workers by their employers, with the exemption of some unusual advantages of a social nature that are specifically listed. 
  • The social security organization with which the worker is enrolled determines whether social security contributions are required.
  • As of 1 June 2022, social security contributions are withheld at a rate of 13.87% at the level of the worker, and similarly, it is contributed at the rate of 22.29% at the owner’s level. The EFKA’s maximum monthly social security contribution is fixed at around EUR 6,500.

9. Withholding taxes

  • The withholding tax rates are 5% for dividends, 15% for interests, and 20% for royalties, which are the same as the levels for people. A firm might be excluded from paying withholding taxes if it meets specific criteria.
  • Royalties, payments for consulting as well as other relevant services, and management costs obtained by legal companies tax residents in Greece are not liable to WHT unless they are given to general governmental agencies. 
  • Technological services, consulting services, and other similar services, as well as management costs, are exempt from Greek WHT for legal companies which are not tax residents in Greece and do not keep a PE there

Greek taxes for individuals

Three distinct progressive scales are used to determine how much personal income tax is assessed. Pensions, corporate earnings, and earned income are taxed between 9% and 44%. Taxes on rental earnings range from 15 to 45%. 

All earnings are also subject to solidarity payment taxes ranging from 0% to 10%. Resident individuals pay taxes on all of their global income, whilst non-resident individuals pay taxes only on income that is derived from Greece.

Employers report taxable income to the tax administration each month in cases of gainful work, whereas workers are not required to disclose such earnings.

Who pays business taxes in Greece?

Corporate taxes in Greece are payable by both people and corporations. Earnings, moveable and immovable assets, capital gains, contributions, inheritance, dividends, interests, royalties, and other items are all subject to taxation.

When there is productive employment, the staff as well as the employer contributes to social security. Various business taxes in Greece on luxury are also levied against people with significant wealth and businesses with substantial turnovers.

The corporate tax rate in Greece is often independent of tax residency. Greek taxes for residents and non-residents are similar, with a few variances. For instance, although non-Greek residential firms must spend 20% tax on royalties, Greek-taxable residential enterprises are free from this tax.

If a person spends more than 183 days in Greece each year, they are regarded as a Greek tax resident.

If a legal entity was formed in accordance with Greek law, has its registered seat in Greece, or maintains its effective administration in Greece, then it is regarded as a Greek tax resident.

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Conclusion

All the entrepreneurs who have incorporated a firm have to pay corporate taxes in Greece. Residents as well as non-residents are liable to pay the Greece corporate tax rate at the standard rate fixed by the relevant tax authorities. 

For more queries regarding Greece corporate taxes, consult our experts at Odint Consultancy. Your concerns will be addressed by our experts.

FAQ’s

Yes, non-resident companies are charged corporate taxes in Greece from the profits generated from sources within the nation.

The Greece corporate tax rate is assessed at a fixed rate of 22%.

Real estate transfer tax must be paid on any transaction of real estate that is not liable for VAT. The assessed worth of the properties is liable to a real estate transfer tax at a rate of 3%

The withholding tax rates are 5% for dividends, 15% for interests, and 20% for royalties.

The typical VAT rate is 24 percent. However, lower rates of 13% and 6% are also applicable to certain products,

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