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Working - Tax & AFM
Greek Tax and Tax Number - AFM
One of the first things you should do when settling in Greece or buying property or a car in Greece is to register for a
Tax number (A.F.M. – pronounced aa – fee - mee).
An AFM number is required to buy a car or motorcycle, to rent or buy property and to legally work in Greece (for
National Insurance and tax), and to open a bank account, amongst other things.
The local Greek Tax Office (Eforia) is the place to do this. An accountant or lawyer can obtain one for you or you can
apply yourself in person at your local tax office.
Documents usually required to obtain a Tax number (A.F.M) are:
- passport and a photocopy of passport
- birth certificate and a photocopy of birth certificate
- marriage certificate if married
Once you have an AFM (Tax) number, you are registered with the Greek authorities and are required to submit a
yearly tax return in Greece (Form E1) regardless of income or residency
i.e. even if it is a nil return. Property owners may also be required to file a property declaration (Form E9) yearly.
The tax year runs from January to December in Greece. Tax returns are due between February and May of the
following year, according to whether you file as a business or an individual.
Although married persons are taxed separately in Greece, they must nevertheless file a joint tax return.
Tax Resident or Non Resident?
A new law introduces and clarifies the definition of “tax residency” as follows:
An individual is classified as a tax resident of Greece provided that: a) he maintains in Greece his primary residence or
habitual abode or the centre of his vital interests or he is a consular or diplomatic employee or public servant working
under a similar regime or a public servant of Greek nationality working abroad or b) is physically present in Greece for
a period exceeding 183 days during a given 12-month period consecutively or sporadically for the fiscal year, during
which the above 12-month period is completed. This paragraph is not applied in case that the individual spends more
than 183 days only for tourist or health reasons or other private reasons.
A tax resident in Greece is liable to be taxed for the worldwide income in the Greek tax office. International tax
agreements are applied for avoiding the double taxation. So the individual is liable to cover the cost of living and the
imputed income, and also must collect income receipts.
NON RESIDENTS in Greece
When buying property, land, a car or boat on Crete. In order to avoid paying income tax on money transferred
from abroad you must obtain proof of an international bank transfer ( a pink or white slip ) from your Greek bank.
Open your own bank account in Crete and make any payments in Crete from this account. When transferring money
into your Greek bank account from abroad make sure that you get a copy of the money transfer order and a 'pink (or
white) slip' from the Greek bank for tax purposes. This will prove where the money originated and that tax has already
been paid on it.
Transferring cash to Greece - IMPORTANT RULING
In the past, any important amount of cash transferred on your person could be declared to the customs authorities at
your point of entry into Greece, and they could issue you a receipt. Since 24/3/08 the customs NO LONGER issue this
receipt and any cash which you wish to declare to the tax authorities must always to be transferred only through a bank.
If you own a home in Greece
You must advise your accountant how many months you reside in your home each year. You must ensure that you
keep the electricity bills for the last 6 years because the tax authorities can ask for them as proof of the number of
months the home was closed. If you have more than one home in Greece, which is not covered by a lease contract or
an EOT license you must keep a copy of the electricity bills to give to your accountant. The tax authorities check the
electricity consumption in order to ascertain whether the home was rented illegally.
Income Tax - more detailed information can be found here (worldwide-tax.com)
Tax scale for payroll and pension income
The taxable payroll and pension income is subject to tax according to the following scale:
Income tax bracket from 01/01/2016)
Range of income € Brackets Tax rates Taxes per bracket of income
0-20,000 20,000 22% 4,400
20,001-30,000 10,000 29% 2,900
30,001-40,000 10,000 37% 3,700
Over 40,001 Over 40,001 45%
Tax Credits (tax free allowance)
* For income up to 20,000€, the income tax is reduced up to 1,900€. (i.e. in fact for income up to 20,000€ there is
a tax allowance of 8,636€).
For income more than 20,000€ the reduced tax of 1,900€ is reduced 100€ for every 1,000€.
Only employees and pensioners who are permanent tax residents in Greece are allowed tax credits for personal
expenditure in the form of receipts for shopping etc. and in order to qualify the transactions must take place
electronically (credit or debit card or bank transfer). . Minimum worth expenditure required by the tax office in order to
qualify for the above tax bracket is: 10% of the total income.
Non tax residents in Greece are not allowed any deductions or tax credits from their Greek income.
The owner of a property is liable to pay property tax if the value of his property exceeds the threshold allowance of
400,000€. (Since 1/1/2010, the previous real estate duty (ETAK) is no longer applied).
New Property Tax - ' Special Property Duty' ENFIA
For 2016/ 2017, real estate owners in Greece will pay the new Property tax (E.N.F.I.A.) in five monthly installments
starting in September 2016. The payment process replaces the previous extraordinary/ special property tax that was
paid via electricity bills between 2012 and 2014.
Car - Road Tax (Τέλη Κυκλοφορίας)
See Driving in Crete: www.livingincrete.net/drivingincrete.html
Tax Offices in Crete
Open 8am to 1pm Monday to Friday.
‘A’ Theotokopoulou and Koronaiou Street
‘B’ Knossou and Natheria Street
3 Tzanakaki Street
Hygoum Gabriel 111
The information on these pages is for guidance only and should not be taken as tax advice. Taxation legislation
changes frequently and this information may not reflect the latest changes, while tax status and liabilities
differ according to individual circumstances. Always consult a Greek accountant regarding your personal tax
status and obligations if you live, work or own assets in Greece.
Contributions by Tax Oasis, George & Niki Atsalakis, Accountants, specialists in providing tax and
accounting advice to non - Greeks. www.cretanaccountant.gr
|Tax & AFM