2009 Tax Collection in Greece:
Important Changes: Do They Affect You?
It's Tighter Tax Collection
but Longer Term, Greek Taxes will Decrease

• Starting January 1, 2009, Greece tightens its tax collection in key strategic areas of revenue generation:
  - increased annual car registration tax
  - new stocks and shares capital gains tax
  - new income tax on lowest band of the self employed to cut rampant cheating by professionals and tradesmen.

In common with other developed economies, the Greek government faces a shortfall in tax revenues due to the slowdown in the world economy. Brits and Irish Expats, other foreign residents in Greece or any person or entity that generates income in the country are affected by new measures that are being introduced by the Greek tax authorities from 2009.

It is not all doom and gloom. In presenting to the Vouli (Greek Parliament) the new revenue-raising measures, the Greek Finance Minister, George Alogoskoufis signalled that individual and corporate income tax rates would likely decrease by 5% over the next five years.

What are the changes in 2009 Greek Taxation?

Annual Car Registration/Licence Tax
Increased by 20 per cent for the year 2009.
(Remember: If tax is not paid by year end 2008, the fee is automatically doubled at time of payment.)

New Capital Gains Tax on Stocks and Shares
- A new 10% tax to be imposed on selling of any shares
- A new 10% tax on stock dividends.
Note: The existing 0.15% share transaction tax will be gradually phased out from 2009.

Tax for Self Employed: No Longer Tax Exempt for Lowest Income Level
The first €10,500 euro band earning threshold by the self employed (including foreign residents), previously non-taxable, is now taxed at 10 per cent. The government says it has been forced to lower the tax threshold due to rampant declaration of income to just below the 10,500 euros level, thereby avoiding any tax payment. In a compensatory move, the tax man is offering incentives to clear tax debts by making it easier for professionals and tradesmen to pay off back taxes.

Greece's Long Term View on Tax Collection (Greece is a member in the Eurozone)
The Greek Finance Ministry says that it wants to see a fall in the overall tax burden. In a significant move to reach this target, corporate and the middle band of individual income tax, both 25% in 2008, are to be reduced to 20% by 2014, starting with a 1% cut in 2009.

Links to other taxation articles authored by Mr Christos Iliopoulos, Attorney at the Supreme Court of Greece, LL.M. a special contributor to Brits in Crete:
Ktimatologio in Crete. (Greece's Land registry)
Inheritance Tax in Greece, 2007 Changes in the Law.
Inheritance Tax in Greece, a 2008 Update and Virtual Abolishment of Greek Inheritance Taxes.

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