# Greek taxes



## Dale_and_Judy (Apr 26, 2008)

We are retired Americans living in Greece. We have been told that we have to pay Greek income taxes on our American retirement income, if we stay in Greece over 6 months in a year. 

1. Is this correct?

2. If we travel to other European countries during our stay, and save receipts, will this be deducted from our time counted in Greece?

This is a question that even our lawyer does not know a concrete answer to.
Thanks


----------



## Bevdeforges (Nov 16, 2007)

As with all complex questions, the answer boils down to "it depends." I don't know much about the Greek tax system, but I can tell you that, as Americans, you must always file a US tax return no matter where in the world you live. (One of the "joys" of American citizenship.)

The general principle as far as taxes is concerned is that you pay taxes in your country of residence. Your tax residence is a function of many factors, but the one most people cite is that 183 days present in a country in a year is a presumption of "tax residence." Traveling to other countries in order to avoid tax residence doesn't usually work, because the 183 day rule isn't the determining factor - it's just a guideline. If you don't spend 183 days anywhere, then they'll look for where you spend "most" of your time, and where your primary interests lie - where you have a home, bank accounts, where you go to the doctor, etc. etc.

You say you are living in Greece - basically that means you're probably subject to Greek taxes. Your US Social Security retirement is probably covered by a "social security treaty" which means that your US social security will wind up being taxed in the US, under US rules. You need to find out how Greece acknowledges income that is taxed elsewhere - sometimes it's a deduction or exclusion, sometimes a tax credit. For any private pension or retirement income, again the answer is "it depends" on the interaction of the two tax systems. (Private pensions are not covered by the tax treaties.)

You may try contacting the US Consulate in Greece to see if they have information available to guide you. If they don't have an IRS office there, you could check the US Consulate in Paris website, where there is an IRS office. The IRS people in Paris are generally very helpful (if perhaps a bit overworked).
Cheers,
Bev


----------



## LGK616 (Sep 22, 2009)

Greece is a signatory to a Treaty for the Prevention of Double Taxation with many countries all over the world. 

Draft agreements with additional countries are at the discussion stages.

A Double Taxation Prevention Treaty, in principle, enables offsetting tax paid in one of 2 countries against the tax payable in the other, in this way preventing double taxation.

Another important factor is the grant of an exemption or tax at a reduced rate on certain receipts such as interest, royalties, dividends, capital gains and others that are connected with a transaction carried out between parties associated with the Double Taxation Prevention Treaty.

When certain income is taxable under the Greek Income Tax Ordinance but there is an exemption (reduced tax) under any Taxation Treaty, the income is taxed, if at all, but only according to the provisions of the Taxation Treaty. 


Double Taxation Agreements: List of Countries, as of May 2008


Albania Armenia Austria 
Belgium Bulgaria China 
Croatia Cyprus Czech Republic 
Denmark Egypt Finland 
France Germany Georgia 
Hungary India Ireland 
Israel Italy Korea 
Kuwait Latvia Lithuania 
Luxembourg Mexico Moldova 
Netherlands Norway Poland 
Portugal Romania Russia 
Slovakia Slovenia South Africa 
Spain Sweden Switzerland 
Turkey UK Ukraine 
USA Uzbekistan


----------



## The Grocer (May 30, 2010)

Tax on income from USA I can not answer, but seems adequately responded to in the above replies. I do wonder however if you are referring to "tax" that has to be paid on property owned in Greece? Many contributors are referring to this as "income tax" which in some way the tax payable is based on.
A "tax" is now payable on property and has two levels, 
a) for permanent residents
b) for "holiday" homes
the rates vary.......
you can offset this "tax" by proving income is brought into Greece..
see link for a more detailed account....
http://www.apokoronasourhome.com/pdfs/Tax_liabilities.pdf


----------

