Subscribe: Brits in Crete :: Taxation
http://www.britsincrete.net/index.php/about-crete/taxation?format=feed&type=rss
Preview: Brits in Crete :: Taxation

Taxation



Brits in Crete :: A Guide to Living in Crete, Greece for British and Irish Ex-pats. Exploring the reality of Life on Crete, from finding a job, purchase a home, retire, how to handle the Greek bureaucracy plus day-to-dy information. The BritsinCrete.gr



Last Build Date: Fri, 15 Dec 2017 14:41:50 +0000

 



2009 Tax Changes

Sat, 27 Aug 2011 23:00:00 +0000

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 Ex-Pats, 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.

Read More...




2011 Property Tax Changes

Sat, 27 Aug 2011 23:00:00 +0000

Greece 2011
Planned Increases in Objective Values of Land and Property

More People to fall into the Annual Property Tax Net from Early 2011

July 30, 2010 -- To generate more tax income from inheritance tax and real estate taxes, the Greek Government will revise upwards the "objective" values on property and land from the tax year, 2011. The tax year in Greece runs from January 1 until December 31 each year, as designated by the Economics Ministry.

These rises, on average will be 50 per cent, while some top end real estate will attract more than a 200 per cent increase. These moves will mean the tax net will widen to bring between 60 and 70 per cent of property owners in Greece into the real estate tax net. A special one off home owners property tax was already introduced in 2009. 

 

Read More...




Avoiding UK Tax

Sat, 27 Aug 2011 23:00:00 +0000

British Citizens : How to Avoid Some UK Tax Liability
Sell Up and Get a One-way Airline Ticket

By Richard Colburn, Cert PFS, FAIQ (CII)


Introduction: Brits in Crete portal has invited Richard Colburn, Cert PFS, FAIQ (CII), a UK qualified financial planner to help state how Brits who are moving abroad, say Crete, can avoid some of the pitfalls in their tax obligations in the UK.

Richard Colburn writes:

Some of the main components of professional financial planning include estate and tax planning, investment management, the need for regular reviews and, of course, what to look for in a financial adviser. British citizens are able to avoid some of their liability to UK taxes by simply ‘selling up’ and buying a one-way plane ticket. This is because most UK lifetime taxes are based on where you live, not your citizenship.

But under UK tax law, any income which arises in the UK - whether from bank deposits, UK property or dividends from UK shares and funds - is taxable, regardless of where the owner is living or his or her citizenship.

Remember too that when someone dies with UK assets, those assets are subject to inheritance tax. So from a tax planning perspective restructuring assets away from the UK is a key consideration.

Offshore funds provide investors with a much wider choice of investments and will also grow tax free. There are several options available to ex-patriates for holding your investments offshore. A professionally qualified financial adviser can recommend the one that provides you with the safest, most convenient and best value solution for your circumstances.

Read More...




Avoiding UK Tax Liability

Fri, 30 Sep 2011 07:03:22 +0000

British citizens : How to avoid some UK Tax liability
Sell Up and Get a One-Way Airline Ticket

By Richard Colburn, Cert PFS, FAIQ (CII


Introduction: Brits in Crete portal has invited Richard Colburn, Cert PFS, FAIQ (CII), a UK qualified financial planner to help state how Brits who are moving abroad, say Crete, can avoid some of the pitfalls in their tax obligations in the UK.

Richard Colburn writes:

Some of the main components of professional financial planning include estate and tax planning, investment management, the need for regular reviews and, of course, what to look for in a financial adviser. British citizens are able to avoid some of their liability to UK taxes by simply ‘selling up’ and buying a one-way plane ticket. This is because most UK lifetime taxes are based on where you live, not your citizenship.

Read More...




Death Duties in Greece

Sat, 27 Aug 2011 23:00:00 +0000

How Greece Death Duties and Estate Taxes Affect British, Irish and Other Ex-patriates

Introduced in 2007

 

Greece introduced a new Inheritance Tax law, known as Tax Law 3427 effective January, 2006. Some further adjustments were added in March 2007 (see page bottom). The law brings Greece in line with European Commission parameters on estate taxes and death duties. It affects British, Irish and other ex-patriates as well as Greeks who live in the country or who have assets in the country. This page of Brits in Crete is a guide to these changes.

Read More...




Getting a Personal tax number for bank account

Sun, 13 Jan 2013 22:00:00 +0000

To Open a Bank in Crete, You Need a Tax Number For banking in Greece you absolutely need a personal tax number (AFM). We were pleased as Punch to get our Greek tax number (AFM) so we could get a mailing box, now we needed to open a bank account. So we went to the bank and duly presented our hard gotten tax forms and duly presented them, together with our passports, to the helpful young lady and asked if we could please open a current account. She studied the tax forms and said that she was sorry but since according to the tax forms we were self employed we would require further evidence of our income. We explained that we weren’t self employed. That’s not what it says here she responded you will have to go to the tax office and get these details changed. Our hearts instantly filled with dread. Another trip to pay homage to the fuehrer. Bollocks!! At least the tax office is closed every Friday so we can get ready over the weekend. Duly downloaded some translation software and the English-Greek and Greek-English dictionaries that go with it so we could write down in Greek that we were not working. Irene is a housewife and I am retired police officer. Not difficult to translate methinks.Housewife – ΟικοκυράPoliceman – αστυνομικόςEasy peasy so far. Back to dictionaryretired 2 [re'tired rɪ'tɪə(r)d]adj. απόμερος, συνταξιούχοςOh dear. Eeny meeny miny mo. Picked the first one and duly added it to the document to present to the fuehrer on Monday.So Monday arrives, we are happy to be prepared with all our paperwork and new found Greek language skills for the ordeal ahead. We queue for ages with the locals regularly jumping in front us for our audience with the fuehrer. He looks at us with disdain. What do you two want? He asks in a tone to strike fear in hearts of lesser mortals. Not me! I proudly march up, sit down, present our paperwork pointing out the problems we had at the Bank and asked him to amend the details according to the beautifully translated word document. He looked somewhat bemused and asked if I knew what I had written. “Of course” I replied puffing my chest out pride. “Irene is a housewife and I am a retired policeman” daring him to call my local BIG policeman friend. He shrugged his shoulders changed our details and handed our new tax forms to us without saying another word. Yee Haaaaah. Victory number 2 in the battle against bureaucracy.Off we trot to our young lady friend in the bank and hand over our new papers. She examines them and informs us that I am now a pensioner. No problems with that.. handed over proof of my pension. Irene is unemployed and had to sign another form to confirm that and the process was under way. While waiting for her to complete all the paperwork I told her about our adventure with the fuehrer and showed her my translation. Oh dear she smiled. Here comes that sinking feeling again. It says here she responded that you are a shy policeman. Retired as in shy and retiring.Oh bollocks!!!!! My mind raced back to visualise the fuehrer leaping around with glee telling all his comrades about how he’d got one over on the shy policeman, leaving them rolling on the floor laughing their asses off. Bank accounts now opened and lesson two learned. Pride always comes before a fall!!! Ho Humm!! Oh…… and reverse translate to check you have got the correct meaning!!!!!!!!!!!!!!!!!!! So to open a bank account in Greece you need a tax number - ΑΦΜ. As to how to get a post office box that is another Cretan experience that also required determination on our part, and of course a Greek tax number.[...]



Getting a Personal tax number for mail box

Sun, 13 Jan 2013 22:00:00 +0000

Getting Mail in Crete, You Need a Personal Tax Number (AFM), or ΑΦΜ in Greek !!

Since renting our apartment here we have found that the street we live on doesn't actually have a name and the postman does not come down this way. Even the large International Hotel we live near has to collect its mail from a P.O. Box at the local Post Office.

So we decided to get a P.O. Box for ourselves..........

Here beginneth the first lesson in the local bureaucracy.

We went to the Post Office and asked to rent a P.O. Box. to be told we have to go to the local tax office in the next town and both get local tax numbers before we are allowed to get a box.

So off we trot to the local tax office. After practising my somewhat limited Greek in several offices in the Tax Building we eventually found the right guy to speak to. "Why do you want a tax number" he asked rather perplexed. We told him why and he said he could not issue one until we had residence permits or ID cards from the local Police.

So off we trot AGAIN to the local Police Station. Sorry we are told the guy who deals with this is on holiday for a week ...... come back later.

Seven days pass by. We get four passport photos of us each suited and booted and off we trot back to the Police Station to start our previous journey in reverse. The Police was very helpful but pointed out that we couldn't get I.D. cards until we had been here for three months and any way they we definitely not required to get tax numbers!!!!!!!!!

BOLLOCKS!!!!!!

If we had any problems with the fuerher at the tax office we had to tell him to call the BIG and I mean BIG Police man.

So of we trot to the tax office. What a HOOT!!! The little Fuerher called the BIG Police man and was duly put in his place. Tax numbers were issued, we went to the Post Office paid the rent for the Box and VOILA!! a P.O. Box postal address ...........

All is well ...................??????????

To date we haven't been issued with a key for it. The counter clerk has to be asked to come and open it for us everytime we want to check our mail!!

HO HUMM!! First lesson is hereby endeth in Greek bureaucracy!!

So to get mail in Crete,  a P O box helps. What about opening a bank account? That is another Crete experience that also required determination on our part, and of course, a Greek tax number (AFM).




Greece Foreigners Taxation

Sat, 27 Aug 2011 23:00:00 +0000

Foreigners, Permanent Residents and Non-Residents in Greece

Their Tax Liaibilities to the Greek Tax Man

 

By Christos ILIOPOULOS,
Attorney at the Supreme Court of Greece, LL.M.
Specialist in International and Business Law

(image)

In this article, Mr Iliopoulos gives tax advice to British, Irish and other ex-patriates whether they are permanent residents or not, who work, and/or own property or immovable assets in Greece.

This is the second article prepared by Christos Iliopoulos that is written for, and commissioned by, Brits in Crete.

Essentially, foreign residents, that is people who permanently reside outside of Greece, pay taxes in Greece generally under the same tax rules that apply for permanent residents in Greece. Few exceptions only apply to foreign residents. It is important to understand that only properly and accurately informed foreign residents, who have business or property interests in Greece, will be able to submit the appropriate tax returns and avoid fines and inconvenience.

 

 

 

 

Read More...




Greece Foreigners Taxation: 2013 Changes

Sun, 03 Feb 2013 03:53:13 +0000

  Greece Foreigners Taxation: 2013 Changes Valid as of January 23, 2013 By George Atsalakis and Niki Atsalakis, Accountants, Chania     A number of changes for taxation of foreigners in Greece have been applied from January 1, 2013. Most significant is the income tax brackets for salary, pension and agriculture income, referred to further in the article. While all taxpayers in Greece are treated equally, there are clear guidelines what constitutes residence for tax purposes that affects the ex-pats. – Webmaster at Brits in Crete.     The physical presence of an individual more than 183 days per year in Greece is automatically classified as tax resident in Greece and is liable to taxed for the worldwide income in the Greek tax office. International tax agreements are applied for avoiding the double taxation. So for a person that is tax resident in Greece the cost of living and the imputed income are applied (see below section Q). Also he is liable to collect receipts for his daily expenses only if he receives a pension or he is employee.   Individuals who are not tax residents in Greece who have a tax filling obligation and are taxed in Greece only on their Greek source income are obliged to file on an annual basis to the Tax authorities of their country of residence "Claim for the application of the double taxation convention between their country of residence and Greece." These forms are on the following link http://www.gsis.gr/ddos/c_en.html and must be sent to their accountant in order to be submitted with their Tax return. For this year you should submit TWO forms, one for the fiscal year 2012 (01/01-31/12/2011) which you are kindly requested to send to your accountant until 29/3/2013 and another one for the fiscal year 2013 (01/01-31/12/2012) until 30/04/2013.   Individuals who fill in a tax return in Greece must have a Tax Registration Number. It is necessary to obtain a tax registration number prior to open a bank account. Individuals should authorize a Greek accountant to represent them in front of the tax office and to obtain the tax number. In their Greek bank account they have to transfer through international bank transfer any money that they intend to spend or invest in Greece. This process is very important in order to avoid to be taxed and to comply with money laundry regulations.   Tax returns should be submitted every April for the last tax year (which runs from January to December). Although married persons are taxed separately in Greece, they must nevertheless fill in a joint tax return. Taxable income of dependent children is always added to the taxable income of the parent who declares the higher income All foreign citizens who owning a property or a car or have any source of income in Greece must fill an annual tax return (form E1) irrespective of whether or not are liable to pay tax. In some cases, further tax declarations (i.e. forms E9, E2, E3 etc) are required. Individuals are liable to submit tax return since the year that they transfer money in their Greek bank account. There are no special rules applicable to foreign personnel.   Individuals filling a tax return in Greece are subject to income tax on the greater of their declared earnings or IMPUTED INCOME. Imputed income is assessed on the basis of living expenditure or acquisition of certain assets.   Greek law states that Greek source income is taxable in Greece whereas individuals who are Greek residents for tax purposes are subject to tax on their world-wide income. The determination of whether an individual is Greek resident or not is depended on the individual’s intention to adopt Greece as his permanent place of residence. There must be evidence of fact coupled with intention and this intention must be apparent from objective evidence such as the acquisition of a house with the intent[...]



Inheritance Tax in Greece 2008

Sat, 27 Aug 2011 23:00:00 +0000

Greece Effectively Abolishes the Inheritance tax

For Most Heirs in 2008 and Beyond


Introduction to Changes in Greek Inheritance Tax Legislation in 2008

Greece introduced a new Inheritance Tax law, known as Tax Law 3427 effective January, 2006 and has now taken further reduction in tax measures in 2007 and by January 1, 2008 the Greek state has all but abolished Inheritance Taxes altogether. In the article below specially contributed to Brits in Crete by noted international law specialist and Supreme Court Lawyer, Christos Iliopoulos, please note that its contents apply to anyone who has property in Greece and is entitled to an inheritance of a property in Greece. This is the same for Greeks and non-Greeks. The inheritance taxes that the Greek government imposes are the same for everyone. However, whoever inherits (who is the heir) and what share they are to get as the beneficiary is determined by the law of the nationality of the deceased. - Gerald, Webmaster, Brits in Crete.

Greece Abolishes the Inheritance Tax!
By Christos ILIOPOULOS,

Attorney at the Supreme Court of Greece, LL.M.
Specialist in International and Business Law

(image)

Christos Iliopoulos, February 2008.

 

 

 

 

Read More...




Inheritance Tax in Greece 2010

Sat, 27 Aug 2011 23:00:00 +0000

Inheritance Taxes in Greece, 2010 Major Changes

Critical Date: January 19, 2010 for Greek Inheritance Tax Legislation Change in 2010

 

As expected, the Greek government introduced legislation according to which the rates of taxes for Inheritance and Parental Donation to Children have been seriously modified. The changes take effect from 19 January 2010 for inheritance Taxes in Greece and from 8 January 2010 for Parental Donations.
Before we outline the basic new rates, it must be noted that for previous inheritance cases different legal regimes and rates apply, depending on the date of the passing of the deceased. One thing is for sure, however: inheritance taxes are paid only for properties of deceased persons who died from January 1st, 1990. If the deceased passed away before 1-1-1990, the heirs do not pay any inheritance tax at all, irrespective of the value of the inherited properties.

Inheritance Taxes in Greece, 2010 Update
By Christos ILIOPOULOS,

Attorney at the Supreme Court of Greece, LL.M.
Master Of Laws, International and European Law

(image)

Christos Iliopoulos, February 2010.

 

 

 

 

Read More...




Residency for Tax Purposes

Sat, 27 Aug 2011 23:00:00 +0000

How the UK's 2008 Finance Act impacts Tax Residency Status

for Ex-pat Brits in Greece and Cyprus:

Your Guide to UK Tax Changes

 

This page is a brief 'layman's' guide to the basic facts about income tax for Ex-pat Brits working in the EU in light of changes in the UK Finance Act 2008. In our case this relates to Brits in Crete, Mainland Greece, Greek Islands and Cyprus in particular.

Time spent working outside the UK, if you are already paying UK Income Tax is critically important as are the circumstances as to any liability to the British tax inspectors. The criteria and combinations are endless. Working - part time, full time, a brief time sent abroad for a temporary assignment for a UK company, a long term stay with work, a contracted assignment, retaining UK property and bank accounts, starting a new life lock stock and barrel, retirement etc, etc - all may be treated differently.

Read More...




Special Property Tax 2011-2012-2013-2014

Wed, 23 Nov 2011 10:34:01 +0000

 
Greece :: Special Property Tax (Duty) 
By George Atsalakis and Niki  Atsalakis, Accountants, Chania

Original: Chania 4/10/2011

Updated August 2014 by Admin.

On 27/9/2011, the government voted a new special property duty referred to in short form as E.E.T.H.D.E, which was collected through the electricity bills until installments for 2013 were completed. That is has changed to direct collection from July 1, 2014 via the tax authority for the year 2014. There have been minor assessment calculation changes in the three years life of the special property duty(tax) so far. The permanent property tax has been re-named as E.N.F.I.A. It is assessed and collected through payments directly to the government. Advice of how much property owners need to pay is sent to their tax accountant/lawyer. Installments can be paid at tax office cashier windows, online banking or at your nearest Greek post office. It has been a chaotic start to the changed arrangement for the year 2014. The initial August installment deadline was delayed from August 31, 2014 to September 18, 2014 as at the time of writing this. It is interesting to note how the government used the DEH - electricity company to initially collect the tax but many have paid their electricity bill but not the tax. Just a reminder that all permanent residents in Greece have to file annual tax returns based on worldwide income, as do non residents for tax purposes who own immovable property (not applied to worldwide income). Retired people who are non resident have a slightly easier time and now only need to file tax if there are changes in their circumstances on income in Greece. All non-residents who own property are required to appoint a power of attorney to act on their behalf. We are not tax advisors and you must consult your tax advisor/accountant handling your affairs with the Greek Tax man. 

Read More...




UK Tax Residency Status

Fri, 30 Sep 2011 07:12:11 +0000

How the UK's 2008 Finance Act impacts Tax residency status for Ex-pat Brits in Greece and Cyprus:
Your Guide to UK Tax Changes

 

This page is a brief 'layman's' guide to the basic facts about income tax for Ex-pat Brits working in the EU in light of changes in the UK Finance Act 2008. In our case this relates to Brits in Crete, Mainland Greece, Greek Islands and Cyprus in particular.

Time spent working outside the UK, if you are already paying UK Income Tax is critically important as are the circumstances as to any liability to the British tax inspectors. The criteria and combinations are endless. Working - part time, full time, a brief time sent abroad for a temporary assignment for a UK company, a long term stay with work, a contracted assignment, retaining UK property and bank accounts, starting a new life lock stock and barrel, retirement etc, etc - all may be treated differently.

Read More...