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TAXES
PROPERTY TAXES:
There are two relevant taxes here but there are exemptions for a limited period
for foreign residents buying their first home in Greece. If you are not
granted this exemption, you will need to pay a property tax of 0.25% -
0.35% of the value of the property.
There is also a wealth tax applied to any property valued at over
205,000 euros. However, there are allowances for couples and families
making this figure much higher in most cases. If your property falls
into this category, you will pay 0.3% on the first 148,580 euros above
this amount, 0.4% on the next band and so on. If you think you may be
liable for this tax, we can make enquiries on your behalf and provide you
with information.
However, to be absolutely certain of your liability, you will need to seek the advice of a professional
adviser.
TAX ON PROPERTY INCOME:
You may be surprised to know that Income Tax is payable in Greece on any
income derived from property in Greece, even if it is paid in sterling
in the UK.
So tax returns need to be completed and sent to the Tax Office by the
middle of March every year. It may well be that after all the deductible expenses have
been taken into account there is no tax payable, but a return still
needs to be made.
You should also consult your tax adviser in the UK because you will also
need to declare any income from your property on your UK tax returns.
Although it will be paid in Greece, which has signed the double
taxation treaty with the UK, there may still be some tax to pay in the
UK.
Income Tax in Greece is about average for the EU. Against your property
income you should be able to offset the following:
repairs, maintenance, security, cleaning, mortgage interest, management
and letting costs (including advertising), insurances and local taxes
etc.
CAPITAL GAINS TAX:
Fortunately private individuals are not currently generally liable to
pay any Capital Gains Tax.
INHERITANCE TAX:
This is a complicated subject and we recommend that you take legal
advice. However, it is important to have made a will which includes
details of the disposal of your Greek property.
INCOME TAX and VAT:
If you need information on Income Tax
or VAT etc, please let us know, or
contact your accountant or other professional adviser.
MORE INFORMATION:
If you would like more information, we can put you in touch with
advisers and recommend books that you may find helpful.
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