TAX RESIDENCY IN GREECE: LEGAL FRAMEWORK AND IMPLICATIONS

The concept of a “tax resident of Greece” defines the category of individuals who are obliged to pay taxes within the territory of the Hellenic Republic, as well as the rules for taxing their income derived from sources both within the country and abroad. This status is of crucial importance for individuals who reside permanently in Greece or conduct economic activities on its territory and abroad, and it determines their tax obligations in accordance with Greek tax law.

Who Is Considered a Tax Resident of Greece?

Under Greek tax law, an individual is recognized as a tax resident of Greece if at least one of the following conditions is met:

1. Residence in Greece for more than 183 days in a calendar year, regardless of whether the days are consecutive.

2. Having a center of vital interests in Greece, which may include:

   • Family and social ties;

   • Professional activity;

   • Ownership of real estate or other economic interests.

Obligations of a Tax Resident of the Hellenic Republic

When an individual is recognized as a tax resident of the Hellenic Republic, the following obligations apply:

• Declaration and payment of taxes on all income, earned both within Greece and abroad.

• Compliance with all tax obligations, contributions, and other payments established by Greek tax law.

The status of a tax resident determines the full scope of an individual’s tax liability to the state and establishes their duty to strictly comply with the provisions of Greek tax legislation.

Establishing Tax Residency in Greece

To be officially recognized as a tax resident of the Hellenic Republic, an individual must submit the appropriate notification to the Independent Authority for Public Revenue (AAΔE).

For foreign citizens, an additional mandatory requirement is holding a valid legal residence permit in Greece.

How to Transfer Tax Residency from Greece to Another Country

If an individual intends to transfer their tax residency outside the Hellenic Republic, the following steps must be taken:

1. Submit a notification of change of tax residency to the Greek tax authorities where the individual was previously registered, indicating that their center of vital interests is now abroad.

2. Provide documents confirming permanent residence abroad, such as:

   • A rental agreement or documents proving the acquisition of real estate;

   • Evidence of employment or tax filings in another country;

   • Information regarding the relocation of family members, including children enrolled in schools abroad.

In cases of doubt, the tax authorities may request additional documents or conduct an audit to verify the individual’s tax residency abroad.

The concept of tax residency is crucial for determining the scope of tax obligations in Greece and significantly affects an individual’s income and property status. A precise understanding of the criteria established by law, timely declaration of tax status to the Greek tax authority (AAΔE), and support from a qualified specialist ensure full compliance with tax legislation, help avoid additional tax assessments and penalties, and allow for the proper and secure establishment of Greek tax residency or the transition to tax residency in another country.

Follow us on social media:

Instagram  • Facebook  

Lawyer in Athens | Greece | Legal Assistance | Residence Permit | Greek tax authority | Taxes in Greece | Immigration to Greece | AFM