Navigating the Greek Tax System: A Comprehensive Guide

The Greek tax system, while offering attractive benefits like the flat tax for pensioners, can seem complex at first glance. This guide unravels the intricacies of tax filing in Greece, providing clear explanations for residents and newcomers alike. Whether you're wondering about the annual ENFIA property tax or the online portal Taxisnet, this comprehensive resource will equip you with the knowledge you need to navigate the system smoothly.

We'll delve into essential aspects like:
Understanding key terms: Demystify terms like ENFIA (Unified Property Tax) and AFM (Tax Identification Number) to gain a solid foundation.

• Filing your tax return: Learn the step-by-step process, from gathering documents to submitting electronically through Taxisnet.
• Who needs to declare: Determine if you fall under the obligation to declare your income in Greece.
• What to declare: Discover the types of income you need to report, including employment income, rental income, and capital gains.
• Joint filing for married couples: Explore the possibility of filing a joint tax return with your spouse and potential tax benefits.
• Tax clearance certificate: Understand the importance of the "ekkatharistiko" and how to obtain it.

By providing clear explanations and referencing helpful resources, this guide aims to empower you to handle your tax obligations in Greece with confidence. So, take a deep breath, and let's embark on a journey through the Greek tax system!

What is ENFIA?

ENFIA stands for the Unified Property Tax. It is a tax imposed on all properties in Greece, including buildings, plots of land, and parcels of land. The amount of ENFIA is based on the surface area and specific characteristics of each property.

  
What is afimi?

Afimi is the Greek pronunciation of AFM, which stands for Tax Identification Number (TIN). It is a nine-digit number that you will need for various purposes in Greece, such as working legally, opening a bank account, buying property, and accessing the online services of the Greek tax authorities (Taxisnet).

How to declare your taxes in Greece

The process of declaring your taxes in Greece involves filing an annual income tax return. To do this, you will need to have a Greek tax registration number.  Here are the general steps involved:

• Gather your documents: Collect all relevant documents such as income statements, receipts for deductible expenses, and proof of any tax credits you may be eligible for.
• Access Taxisnet:  Taxisnet is the online portal of the Greek tax authorities. You will need your AFM and login credentials to access the system.
• Complete the tax return:  The tax return form will guide you through the process of declaring your income and calculating your tax liability.
• Submit your tax return: Once you have completed the form, you can submit it electronically through Taxisnet.

Who needs to declare taxes in Greece

Generally, all taxpayers who have reached the age of 18 are required to declare all of their income in Greece. Even if you have no income, even if they haven't earned any income during the year.

What to declare in your tax return

In your Greek tax return, you must declare all income, whether taxable or exempt, electronically to the Greek Tax Administration. This includes income from employment, pensions, rental income (From your Greece Golden Visa properties or other properties), capital gains, and business profits. Additionally, you need to declare any purchases of property, cars, or boats in Greece. Be prepared to provide documentation proving how you obtained the funds used for these purchases.

What do I do if I’m married?

Married couples can file a joint tax return in Greece. This can sometimes result in a tax benefit for the couple.

Timeline for Paying Taxes

The Greek tax system typically follows a post-filing payment schedule. This means you first submit your tax return and then receive a notification with the amount owed. While deadlines can vary slightly from year to year, tax returns are generally due in late July or early August, following the Easter holidays. Once you receive your tax assessment, you'll have a designated timeframe, usually a few weeks to a few months, to settle your tax obligations.

What Homeowners Should Do and What Tax to Pay

As a homeowner in Greece, you'll be responsible for paying two main taxes annually:

• ENFIA (Unified Property Tax): This tax is assessed on the property's size, location, and specific characteristics.
• Income Tax on Rental Income (if applicable): If you generate income by renting out your property, you'll also need to declare and pay income tax on those earnings.

Local DOY vs. Foreign DOY and AFM Code

Here are the key takeaways regarding tax residency and registration:

• Non-Tax Residents: Individuals who are not tax residents in Greece and do not own property will be registered at Foreign DOY office and won't have any tax filing obligations if they are not property owners.
• Tax Residents: Anyone who is considered a tax resident in Greece, regardless of property ownership, will have an AFM code, will be registered at Local DOY and need to submit yearly tax returns.

The tax clearance certificate

After you submit your annual tax declaration, you will automatically receive a tax clearance certificate,  known as an "ekkatharistiko" in Greek. This certificate can be printed anytime through the Taxisnet platform and may be required for various purposes such as opening a bank account or renting a house.

Greece tax filing deadline penalty

There are penalties for missing the deadline to submit your income tax return in Greece. The amount of the fine depends on your tax filing status (individual, self-employed, etc.).  An interest penalty is also added to the fine for each month your tax return is late.

Conclusion
We hope this comprehensive guide has equipped you with the knowledge and confidence to navigate the Greek tax system.