Tax system
When living in Greece, it is very important to understand local taxes, especially for those Greek investment immigrants with relatively high net assets. If you overpay or underpay taxes and get sued, it will be troublesome. Let’s follow me from Xinjiayuan to learn more about the Greek tax system.
Social security tax: Like most member states of the European Union, Greek employers are required to withhold and pay a portion of the tax from their employees as social security tax. The employer's share is 28.06% of wages, and the employee's share is 16%.
Corporate tax: Foreign companies are only taxed on profits earned in Greece. The corporate income tax rate at the beginning of 2007 was 25%. Starting in 2010, corporate income tax will decrease at an annual rate of 1% and will become 20% in 2015.
Capital gains tax: Except for special provisions of the law, capital profits in Greece are levied uniformly on corporate income.
Withholding income tax: Starting from January 2009, Greece has levied a 10% withholding income tax on corporate dividends, unless the dividend is applicable to the "EU Parent Company? Subsidiary Directive" or under a bilateral tax treaty. Dividends can enjoy lower tax rates. Greek investment immigrants need to note that withholding income tax also applies to interest and royalties, unless reduced or exempted by a bilateral tax treaty, or the fee is subject to the EU Interest and Royalty Directive.
Value-added tax: Greece’s value-added tax range is 4.5%-23%. VAT on goods that do not fall into any special category is 23%. The value-added tax for category one commodities is 13%, and the value-added tax for category two commodities is 4.5%. On some Greek islands, the VAT on category 1 goods can be reduced to 13%.
For taxes under certain circumstances, the Greek government can grant tax exemptions or reduce part of the tax, such as income earned from stocks on the Athens Stock Exchange, renting one’s main residence, etc., which can be obtained through Greek investment Immigration application can be understood gradually after living in Greece for a period of time.
Economic status
Greece has a combined market economy and a public sector that accounts for about half of GDP. Tourism is a pillar industry, accounting for a large part of Greece's GDP and foreign exchange earnings (about 15%). Greece is the main beneficiary of EU economic aid, with EU aid accounting for approximately 3.3% of total GDP. The Greek economy has grown steadily in the past few years.
Urgent issues include reducing unemployment and further restructuring the economy, including the privatization of several major state-owned enterprises, reform of the social security system, the tax system, and reducing bureaucracy.
Since January 1, 2002, Greece has adopted the euro to replace the old Greek currency as the new currency in circulation simultaneously with other Eurozone member states.
In February 2010, the Greek government owed 300 billion euros in debt and was afraid that it would be unable to repay its debts and cause the country to go bankrupt. Other euro zone countries were worried that the crisis in Greece would have a major impact on them. Greece is among the PIIGS that nearly caused the collapse of the eurozone in 2011.
In 2014, as the market was worried that Greece would withdraw from the bailout early, government bond yields soared, the stock market plummeted, and the European debt crisis may break out.