I need to know the rates of taxation paid by individuals in Greece. In
particular I need the following:
1. Income tax bands 
2. Taxation levied on capital gains (if any)
3. Taxation levied on interest income
4. Taxation levied on income from bonds and equities

I do not need to know about corporate taxation

The information must be current (ie applicable to the current tax
year)

I NEED THIS INFORMATION BY FRIDAY 14th MARCH. ANSWERS AFTER THIS ARE OF NO USE TO ME

paulf --

I have provided direct answers to your specific questions below.  I
have also included links to online resources to aid you in getting
more detailed information about the Greek tax system, should you find
it necessary.

In 2001 Greece's Parliament legislated changes in the country's tax
laws that resulted in lower top tax rates for individuals, which were
fully implemented in 2002.

1.  The current income tax brackets applicable to individuals, along
with their marginal tax rates, are as follows:

For Individuals with Employment Income, Including Pensioners (In
Euros)

Up to 8,400                  	            0
8,400-13,400                               15%
13,400-23,400                              30%
Over 23,400                                40%

For Individuals with Non-Employment Income (In Euros)

Up to 7,400                                 0        
7,400-8,400                                 5%
8,400-13,400                               15%
13,400-23,400                              30%
Over-23,400                                40%

Source: Kypris and Associates
Doing Business in Greece: Kypris and Associates
http://www.kyprisaudit.gr/kyp10g.htm

Most of the same information (in drachmas) can be found in the
following KMPG release issued at the time of the legislative change:
KPMG: Worldwide Digest
http://www.us.kpmg.com/microsite/tax/ies/tea/spring2001/stories/wwd/greece.htm

Applying the exchange rate of 1 euro = 340.75 drachmas confirms that
the information at these two sites is identical.  For that exchange
rate, see the top of this linked page:
Euro
http://www.euro-hellas.gr/

2.  There is no capital gains tax on individuals in Greece:
Source: Cato Institute
Cato Institute: Tax Cuts on Savings are the Rx for Strong Growth (5th
paragraph)
http://www.cato.org/research/articles/crane-edwards-021004.html

3.  Interest income from deposits is taxed at a flat rate of 15%,
which is withheld by the paying institution:
Source: Embassy of Greece, Washington, DC: Tax System
http://www.greekembassy.org/Embassy/content/en/Article.aspx?office=1&folder=10&article=15&hilite=income%20tax

Interest on government and corporate bonds is withheld at varying
rates and with some exceptions being applicable.  A Greek financial
advisor summarizes these provisions at this linked page:
Greekshares: Taxation
http://www.greekshares.com/taxation.asp

4.  There is no tax due by individuals on corporate dividends.  Income
tax on dividends is paid by the corporation issuing them.
Source:  Cato Institute
Cato Institute: Nearly All Major Countries Provide Dividend Tax Relief
(6th paragraph)
http://www.cato.org/dailys/01-07-03-2.html


The information above is not intended as legal advice.  Tax codes are
always more or less complex, even outside the U.S., and you may well
need the service of a knowledgeable accountant or tax lawyer if the
situation that concerns you is at all complicated.

Although much of the most comprehensive online information relates to
taxation of corporations ("legal persons"), the website of the Greek
Embassy (cited above) provides a useful and authoritative summary of
individual taxation, as does the website of Kypris and Associates
(also cited above).


Additional Site:

Greek Lawyers Online: John Tripidakis
http://www.greeklawyersonline.com/html/guide_tax-system.html


Google Search Terms: 

"income tax" greece
://www.google.com/search?sourceid=navclient&q=%22income+tax%22+greece+

"capital gains" tax greece
://www.google.com/search?sourceid=navclient&q=%22capital+gains%22+tax+greece+2002

tax rate changes greece
://www.google.com/search?sourceid=navclient&q=tax+rate+changes+Greece+2001


I believe that this information is what you are seeking, and I was
happy to able to meet your deadline.  If any of the information is
unclear or if any of the links don't function, please post a
clarification request before rating this answer.

markj-ga

---

Request for Answer Clarification by paulf-ga on 14 Mar 2003 06:28 PST

Thanks for the prompt answer. While I am very happy with the info on
the income tax, I really need to know the rate at which tax is
withheld on bonds (corporate and Government) and equities. I
appreciate that no FURTHER tax is paid by the indivdual, but of course
the withholding tax is taken from the individual's income. I feel that
this must be addressed to constitute a full answer.

Many thanks

---

Clarification of Answer by markj-ga on 14 Mar 2003 09:52 PST

paulf --

Thanks for the opportunity to clarify my answer with more detailed
information on the taxation of certain investments.

A Greek website devoted to counseling investors in Greek financial
markets provides the following specifics regarding taxation of
different debt instruments to individual investors in Greece:

Interest on government bonds and treasury bills is taxed at a 10%
rate.  The tax on government bonds is withheld from periodic coupon
payments or from the proceeds received after the expiration of the
bond.  The tax on treasury bills is paid in advance when the issue is
purchased.

Interest on bonds issued by banks or insurance companies is taxed at a
15% rate.

Interest on bonds issued by Greek corporations to private investors is
taxed at a 20% rate.

As I reported in my main answer, dividends on shares in Greek
corporations are not taxed to individual investors at all.  Rather,
all taxes on dividends are paid by the "source" of the dividends --
the issuing corporation -- before they are paid to the shareholder,
and dividends are not taxable income.  (In other words, there is no
"double taxation" of dividends in Greece.)  As the source for this
information puts it: "Investors are … exempted from any tax obligation
[on dividends]."


Source:
Greekshares: Taxation
http://www.greekshares.com/taxation.asp

Again, I am pleased to provide you with this information before your
deadline.  I believe that, with this supplementary detail, I have now
provided you with a complete and timely response to your question.  If
anything in my supplementary information is unclear, please let me
know.


markj-ga

Good overall answer and within the (tight) deadline set. For the full
'5 stars' I could have done with a little more information on the
withholding tax applied to equity dividends, but a good and useful
answer nonetheless. Thanks!

paulf --

Thanks very much for the generous tip and the kind words.  

In the spirit of trying to give you the most useful information
possible, let me offer one more (unsolicited) clarification.

According to my research, there is no withholding tax applied to
equity dividends in Greece, and I apologize for not being clear enough
about that in my answer.

Rather, the *earnings* from which dividends are paid are taxed at the
relevant corporate tax rate, but the dividends themselves are declared
and paid by the corporation without being subject to any tax.

I enjoyed researching your question, and I am glad that my answer was
useful to you.

markj-ga