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Greece is a parliamentary republic. The prime minister, who heads the government, holds the main political powers, while the head of state, the president, has mostly ceremonial duties. Executive power is exercised by the government.




CIT = Corporate Income Tax 

SSC = Social Security Contribution  (Employee + Employer)

Business Economics

The most important sectors of the Greek economy in 2018 were wholesale and retail trade, transport and hotel and restaurant services (25.1%), public administration, defense, education, health and social assistance (20.3%) and real estate (16.3%).

53% of Greece exported to the EU: Italy 10%, Germany and Cyprus 6%; in non-EU countries it exported 6% to Turkey and 4% to Lebanon.

Greece imported 51% from EU Member States: Germany 11% and Italy 8%; from non-EU countries it imported 8% from Russia and 7% from China.

Image by Sensei Minimal


Wholesale and retail trade, transport and hotel and restaurant services, public administration, defense, education, health and social care and real estate are the most important sectors of the national economy.

Europe's interventions and the reform package
The Greek tax system was subject to interventions in 2010 and 2011 following the measures planned and decided by international bodies to deal with the Greek public debt crisis. A series of measures have been adopted since 2010 as part of the broader fiscal consolidation effort linked to the EU and International Monetary Fund's package of financial interventions. The most significant tax reform was approved in the summer of 2013, when Parliament approved the laws on the revision of income taxes and on new tax procedures (laws 4172 and 4174). Important reforms have been enacted, including new tax rates and tax rates for dividends, interest, royalties, etc., as well as some changes to the collection of taxes   introduced in January 2013. The law 4223 of December 2013, finally, reformed property taxation.

Personal income tax 
A natural person is considered a resident if he is present in the territory for more than 183 days within a 12-month period. The individual is considered a tax resident if in the calendar year he is present in the territory for 12 consecutive months. The exceptions apply to people who visit Greece solely for therapeutic reasons, tourism, medical assistance, for personal purposes. Personal income tax is on a progressive basis. The tax, in compliance with the principle of world taxation, is payable by natural persons if resident or domiciled in Greece. It is also payable by residents in Greece who collect income from foreign sources, always regardless of nationality and subject to the application of the Conventions to avoid double taxation. Finally, it is payable by general partnerships and limited partnerships. Income tax, like other taxes, is not deductible.

Individual tax rates


Taxable amount (EUR)       


Up to  10,000                      9%

From 10.001 to 20.000       22% 

From 20.001 to 30.000       28%

From 30.001 to 40.000       36%

Over 40.001                       44%

Social contribution

Social security contributions are payable on the salary and benefits in cash or in kind granted by the employer to its employees, with the exception of the extraordinary social benefits specifically listed (e.g. wedding gifts, birthday gifts). The extent of social security contributions depends on the social security fund in which the worker is registered.

From 1 June 2020, for the Primary Social Security Fund (EFKA), social security contributions are equal to 15.33% (15.75% up to 31 May 2020) for the portion to be paid by the employee and equal to 33% (24.81% until May 31, 2020) paid by the employer. The monthly contribution ceiling for EFKA is set at € 6,500.

By virtue of Law 4756/2020, starting from 1 January 2021, the aforementioned social security contributions have been further reduced to 14.12% for the employee and 22.54% for the employer.

The income tax of legal persons
Resident companies are subject to worldwide source tax and capital gains tax. Non-resident companies that have a permanent establishment in Greece are subject to tax on the capital gains derived through the permanent establishment. The tax is payable, among other things, by public and private joint-stock companies, cooperatives and associations, foreign companies operating in Greece under any established form. With regard to public and private companies, the total of the proceeds deriving from the activity carried out both in the State and abroad constitutes taxable income. The remain part after the application of the tax can be distributed in the form of dividends. All legal entities (partnerhips, investee companies, joint-ventures) are taxed at a rate of 22% starting from the tax year 2021.

The Value Added Tax
The ordinary rate is 24% while the reduced rates are 6% and 13% depending on whether they are, respectively, goods or services in any case strictly listed. These percentages have been increased compared to previous years following the debt containment measures. The reduced rate applies to the sales of agricultural products, medicines, natural gas, electricity, foodstuffs, water supplies. It also applies to the provision of the following services: agricultural services, cinema show tickets, sporting events, concerts, passenger transport, restaurants, social services, funeral services. In some islands of the Aegean Sea until 31 December 2017 a reduction of the current rates is foreseen while in six islands (Mykonos, Naxos, Paros, Rhodes, Santorini and Skiatos) the special rates have been abolished and those provided for by the tax system are in force. 

Declarations, instrumental obligations and payments
The tax return must be sent to the public finance office (DOY) by 1 March of the tax year (in exceptional cases by 1 April, 16 April or 2 May depending on the particular type of tax). Between May and June, the taxpayer is notified of the amount of the tax. The taxpayer must, therefore, make the payments due while, in case of excess, he will benefit from  a refund. Income received by employees is subject to withholding tax by the employer. The employer is obliged to deduct, immediately, every month, the amount of withholding and national insurance from the employee's income. Employers who employ a large number of employees are subject to reporting obligations to the tax authorities once a month while employers with fewer employees are required to file returns once every two months. The spouses have to file a single declaration but the taxes are calculated separately on each of them. However, the expenses of one spouse cannot be offset against the income of the other. The incomes of minors are added to those of their parents and taxed by the family. Income from family contributions or donations is added to that of the parents who made the donation.
The self-employed worker is required to pay income tax advances which will be deducted upon presentation of the annual return. Payments on account are due three times a year by the 15th of the month following the reference quarter: the amount of tax due is determined by the tax authorities based on the income of the previous year . 
With regard to VAT, returns must be submitted on a quarterly or monthly basis. The presentation of the VAT return must be accompanied by the payment due. An Intrastat declaration and a list of intra-community sales must then be submitted every year.


Our Athens office can count on the support of a firm of Accountants and Auditors founded in 1977 consisting of 1 Partner as well as a staff of 8 people who work daily in the areas of auditing, payroll processing, accounting, tax assistance and compliance.  

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