Tax in Greece - boring but important

I don’t pretend to be a tax expert but recently I had a long and quite detailed talk to a tax expert about taxation in Greece. I am going to give you an outline of this very important aspect of your Greek financial planning. Remember that the UK has a double taxation indemnity agreement with Greece so you will not be asked to pay tax on the same earnings in both counties.

Firstly:

Tax residents in Greece are liable to pay Greek tax on their worldwide income,

whereas Non tax residents in Greece are liable to pay tax only on their Greek sourced income.

Tax residency:

Residence is determined on the basis of factual circumstances such as:

• The length of stay in Greece


• The possession of a residence permit

Taxable income includes:

• Income from employment,


• Income from a business


• Professional income


• Investment income


• Pension income (under certain conditions),


• Benefits in kind

Married persons file a tax return jointly, but some modifications are applicable as per the family unit conditions.

As in most countries, taxation regulations can change from time to time, but here are some of the deductions that are permissible for 2010:

• Social security contributions in full


• Life insurance premiums up to EUR 1’200 for both spouses in total,


• Interest payments on mortgages signed up to 31 December 2002 are fully deductible but only for one principle home in the taxpayer’s lifetime, if the home is no bigger than 120m2, if bigger the deductible interest is reduced proportionally


• Under certain circumstances, a tax credit is applicable for interest payments on mortgage loans taken after December 2002


• Certain cash donations to institutions and charities

Tax credits for 2010:

• 20% of the annual medical expenses of the taxpayer and his dependents up to a maximum of EUR 6’000


• 20% of the annual home rent up to a maximum of EUR 240,


• 20% of the annual rent paid in respect of dependent children who are studying at a Greek school or university up to a maximum of EUR 240,


• 20% of the educational expense for a taxpayer and his dependents up to a maximum of EUR 240,


• Under certain circumstances, a tax credit is applicable for interest payments on mortgage loans taken after December 2002


• 20% of the expenses for converting an oil heating system to natural gas or solar power or for the purchase of power generating systems using renewable energy sources up to a maximum of EUR 700,


• 20% of alimony payments up to EUR 600

Income tax rates for 2010:

• 0.00% for the first EUR 12’000, (submit receipts to qualify for the tax exemptions),


• 18.00% from EUR 12'000 to EUR 16'000,


• 24.00% from EUR 16'001 to EUR 22'000,


• 26.00% from EUR 22'001 to EUR 26'000,


• 32.00% from EUR 26'001 to EUR 32'000,


• 36.00% from EUR 32'001 to EUR 40'000,


• 38.00% from EUR 40'001 to EUR 60'000,


• 40.00% over EUR 60'001.

Filing date:

Between May 4th and June 1st, in the year following the tax year (for employees).

I hope that gives you a broad outline of what to expect.

Are you still planning on buying property in Greece? Times are hard I know, but with falling property prices it’s a great time to put in that cheeky offer. And of course more and more people are renting homes in Greece rather than buying their own holiday home or spending vast sums on Greek hotels… so if you are thinking of letting out your new home this could be the time to do it.

Talk next week – until then take care!

Carol

The Overseas Guides Company
http://www.greecebuyingguide.com/

A very important member of the British family - your pet!

It occurred to me that you might need to know about the relocation of that most important member of the British family - your pet!

The standard requirements for bringing a pet into Greece are that your pet must be micro chipped and registered, and must have had a rabies vaccination within the last 12 months, more than 30 days prior to travel.

Throughout the EU there are standard rules for the issuing of a PET passport and animals travelling within the EU are required to have one. More information on the passport scheme and travelling with pets is available on the DEFRA Website.

You are able to bring your dog or cat from EU and non-EU listed counties into or back into the UK without quarantine provided it complies with the stringent rules as laid out on the above website. These include anti-rabies, blood sampling and anti-worm/anti-tick hygiene requirements.

The pet must be micro-chipped, vaccinated against rabies and blood tested. They can be brought back into the UK only after six months have elapsed after a satisfactory blood test. A number of airlines, including British Midland, Olympic Airways, Finnair and Lufthansa plus a number of ferry lines are currently authorised to bring non-quarantined animals into the UK.
It would be wise to find out the location of a local vet (ktiniatros) and obtain an emergency telephone number as soon as you arrive in Greece with your pet.

Just remember that travelling with an animal in Greece, unless in your own vehicle, presents problems. No matter how well behaved the animal is, taxi drivers are loath to transport it and buses and trains refuse to do so. If you do finally manage to find a taxi, expect to pay a heavy surcharge and be prepared for the fact that your pet may have to travel in the boot of the car.

Never, ever let your animals stray. Unfortunately poisoning of animals is a fairly common occurrence in Greece. People are not inclined to overlook or forgive roaming or barking dogs or wailing cats...Dogs and cats may eat something coated in poison, or get poison on their paws and lick it off. If you suspect your pet has eaten poison contact your vet immediately. Intravenous drugs to counteract the effects must be given as quickly as possible.

Keep those tails wagging...!

Carol Dunning
The Overseas Guides Company
Have you been to the main website yet? http://www.greecebuyingguide.com/

Bikers be warned!

Are you a ‘biker boy’ or ‘biker chick’? That is not a term that I would ordinarily use about myself, but I must say that I did once hire a scooter in Greece with my children – more about this later…does that qualify me?

Jokes aside, I just wanted to mention that renting a motorcycle in Greece has become far more difficult. The government-mandated crackdown on who can rent a motorcycle or, in some cases even a moped, has Greek motorcycle rental agencies turning away customers – something that does NOT come easily to a Greek business man as you can imagine!

I have to confess that I secretly think that this is not before time: I remember taking my two children, in their very late teens then, to Sifnos. We rented two motor bikes – none of us had driven a motorbike before - ever. We were given half a minute’s cursory tuition and then off we wobbled.

Let me not bore you with the full story of our precipitous and hair-raising ride and just cut to the end. This saw one damaged and dented bike abandoned on the hillsides of Sifnos and two tearful tourists sympathetically loaded onto an already packed bus back to town, with my son chugging slowly behind. I draw a veil…

In future then tourists will be required to have a separate motorcycle license from their home countries. The reason for the crackdown? Foreign visitors have been injuring themselves at an increasing rate as alcohol and inexperience combine to take their toll – guilty as charged – the inexperienced part I mean! Already burdened with one of the highest road accident rates in the EU, this measure is meant not only to protect tourists from themselves but also to improve Greece's road safety reputation.

However, if you Google ‘riding a scooter in Greece’ you will see that lots of people still do it. If I was to give you my tuppence worth, I would suggest that the islands and the quieter parts of the country may be better than say Athens or Thessalolika , especially if you are a novice! Having said that, there really is no better way to enjoy the great outdoors – and the friendly Greek people - than by bike or scooter.

I hope you will join me next week. In the meantime, have fun – and may the wind blow your hair back!!

Carol Dunning
The Overseas Guides Company
Go to the main website at: http://www.greecebuyingguide.com

You think you own a property in Greece - do you?

If you own property in Greece - or think you do - you need to register it on the new land registry finally being put into place by the Greek government. If you don't, you may find it difficult - or even impossible - to prove title and avoid boundary disputes in the future.

I know I said that I would be discussing driving in Greece – and I will – later. But I think that the contentious issue of the new, comprehensive land registry in Greece is so important that I want to give you some info right away.

You may or may not know that until recently Greece was one of only two European countries without a land register. Despite several previous attempts and millions spent in the past, efforts to create a proper land registry in Greece have foundered before. However, the process of registering millions of homes and plots of land in Greece’s first ever comprehensive land registry began on 17th June 2008.

Some three million Greek and expatriate property owners in 107 municipalities nationwide had up to the 30th September 2008 to register their title deeds with Ktimatologio AE, the state-owned company in charge of compiling the Hellenic National Land Registry or Cadastre. Needless to say, this date was not met and the deadline was extended more than once. Also, reports filtered through that not all municipalities had the ability as yet to register property so delays have been experienced.

This land registry process applies to both Greeks living in Greece, and anyone else who owns property in Greece. Those living abroad had until 30th December to register their land, but this date too was extended. Bear in mind that it may be that earlier claims may prevail in case of disputes – first come, first served as it were, so don't wait until the last moment. And keep notarised copies of any documents submitted in support of your claims. Late registration will attract a fine, the amount being decided by the type and the value of the property.

If you acquired the right to property after the expiration of the submission period, you’ll have to register it with the Cadastre within a month from the date of the registration of the contract at the Land Registry office.

The registration process is especially crucial for older properties which have not gone through any sort of title search when they have changed hands. Just because your family has "always owned it" won't confer any protection on you during this new process.

Property owners will be able to visit one of the 76 land registry offices to submit the relevant documents or can fill in forms on line at the registry’s website, which offers some information in its English-language version.

Some 3 million Greeks are expected to take part in the process.

Besides the option of authorizing a person through power of attorney to register property, there is also the possibility of submitting the registration on-line through the official Cadastre website and go to the sub-heading that reads ‘Operative Cadestre’. You can have the documentation posted to you I believe and the payment of the cost can be done by credit card.

Non-residents of Greece can check with the Greek Embassy or a Greek Consulate for the registry schedule of the area where their property is located. Updated information is available on the internet. Information is also available by writing to Ktimatologio A.E., 288 Messogion Avenue, 155 62 Holargos, Greece. The telephone number is +30 (210) 650-5600.

I hope this is helpful and I really would be most grateful for some input here…have you experienced this process? If so, I would love to hear about it.

Please be especially cautious of any offers of help from those you do not know. A really good, recommended lawyer would be the way to go here and I would consult him/her from the outset.

Carol
The Overseas Guides Company
Visit my main website at: http://www.GreeceBuyingGuide.com