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 IncomeThe 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.