Greece Tax Deductions

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Greece Tax Deductions

Greece Taxation of Employee

The employer is obligated to deduct tax at source from an employee and to make additional contributions to social security.

Greece Social Security

  • An employee: the employer's contribution is 6.3.% of the salary. The employee's contribution is 6.3% of the salary.
  • The maximum amount on which national insurance is payable is CYP 1,647 a month.
  • Income in excess of the maximum is exempt from national insurance.
  • Defense Fund.

The contributions of the employer and of the employee are each 3% of the gross salary.

Greese Other deductions

  • Tax must be deducted from the following payments as follows:
  • - Dividend - Standard deduction for a resident - is 20% (A payment to a foreign company - is exempt from any deduction at source).
    - A dividend paid by an off shore company to its shareholders is exempt from any deduction at source
  • Royalties - tax of 10% must be deducted at source.
  • Interest - The standard rate of deduction at source - 25%
    - When the amount of interest is less than CYP 40,000 the tax deducted is 20%.

Deduction at source for payments to foreign residents is subject to the Double Taxation Prevention Treaty.

Greece Tax Relief

  • All forms of tax relief in Greece relate to the income of an individual.
  • The following amounts are subject to the definitions in law.

Individual Relief (2001) Amount - CYP
Donations If agreed, to a limit of CYP 20,000.
Over CYP 20,000 - 50% of the amount
With no agreement, between CYP 5 - 150, depending on the monthly income.
Life Insurance Up to 1/6 of the taxable income.
Child allowance An allowance of CYP 500 for a child under the age of 16 who is not working or studying.
An allowance of CYP 1,500 for a child who is studying at an institute of advanced studies.
An allowance of CYP 500 for a child who is serving in the national guard.
Old age allowance An allowance of CYP 1,500 is granted to any person over the age of 65.
Life partner A reduction of CYP 500.
Professional membership dues The entire amount is allowable
Interest On a loan for a residence up to CYP 500
Other interest, up to CYP 100.
Income from rent 20% of the income is tax exempt.

Greece Tax Exempt Income

The following are eligible for an exemption from income tax on the forms of income specified:
  • An individual's income up to CYP 6,000 per resident.
  • An individual who receives a pension in Greece from overseas employment, to a limit of CYP 2,000.
  • Interest on an individual's income from a government savings plan or from a mortgage company.
  • Bank interest paid on deposits from overseas by a Cypriot bank to a foreign resident who is resident in Greece.
  • Part of capital gains that are received by an individual on the sale of real estate - see under the heading "Capital Gains" for fuller details.

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