Tax Returns Guide 2016 Foreign Residents

June 6, 2016

This comprehensive Tax Returns Guide 2016 Foreign Residents explains key obligations and exemptions under Greek tax law for non-residents with income or assets in Greece.

Greek Tax Rules for Non-Residents (Foreign Tax Residents)

A large number of Greeks have left Greece and now permanently reside abroad due to the unfavorable economic situation. Meanwhile, many expatriates maintain assets in Greece, often generating some income.

Under Greek law, non-residents must submit a Greek tax return if they generate any real income in Greece — even as little as €0.01 in bank interest.

• Filing Deadline (per Circular No. 1041 / 04.05.2016): April 30

• Extended Deadline for Non-Residents: June 30, 2016

  
  

Important Notes for Foreign Residents

“New” Residents Abroad

• Those who applied for non-resident status by March 10, 2016, and were approved, can submit their 2015 tax return by December 31, 2016, without penalty.

  
  

Code 320

• This code (related to the wife’s tax status) has been abolished for spouses registered as foreign residents.

• By default, entire families are now considered foreign residents, based on vital interests (Article 4, Law 4172/2013).

  
  

Taxable Income Rules

Income from Greek Sources Only

• As a rule, only income from Greek sources is taxable (Article 5, Law 4172/2013).

No “Living” Presumptions

• Presumptions of living costs (e.g. car ownership, second home, etc.) do not apply to foreign residents—even if they generate real income in Greece (Article 33, Law 4172/2013).

  
  

Asset Purchases

• Presumptions for asset acquisition do apply if the non-resident earns Greek income.

• If a non-resident purchases property or assets not covered by declared income, they must justify the purchase.

  
  

Loan Installments

• Payments on loans taken from Greek institutions count as evidence of capital acquisition, not “living expenses.”

• Therefore, they must be covered by declared or documented income/capital.

  
  

Code 781: Capital Imports

• Non-residents may import capital from abroad without declaring its origin.

• These funds may be used to cover presumptions of asset acquisition.

• They must be reported using Code 781, based on bank certification.

Capital Gains Tax

• Non-residents are exempt from capital gains tax if:

  • They provide a Certificate of Tax Residence to the custodian.

  • They reside in a country with a Double Taxation Convention (DTC) with Greece. (See Circular No. 1032/2015)

Dividends from Greek Companies

• Subject to 10% withholding tax in Greece.

• May also be taxed in the country of residence — depending on the Double Taxation Agreement (see Circulars No. 1042/2015 and No. 1011/2015).

• Taxpayers may offset Greek tax against foreign obligations, if supported by a valid Tax Residence Certificate.

  
  

Annual Documentation

• Although not required annually, non-residents are advised to keep up-to-date documentation proving their foreign tax residency in case of audit.

Final Remarks

• Only those officially registered in the Tax Office for Foreign Residents (or the respective departments within regional tax offices) are considered non-residents under Greek tax law.

• Simply living abroad does not automatically qualify someone as a non-resident.

• Without official registration, preferential treatment is not granted.