Greek taxes and average cost of living

Greece attracts not only unique landscapes and rich cultural heritage, but also opportunities for a comfortable life. Before moving, it is important to understand the peculiarities of the country's tax system and the average level of living expenses. Understanding these aspects will help you plan your budget and make an informed decision. In this article, let's look at the key taxes for residents and non-residents, the cost structure for housing, food, transportation and other important categories to give you a complete picture of life in Greece.

Taxes for individuals in Greece

In Greece, the taxation system for individuals is based on a progressive scale: the higher the income, the higher the interest rate. Tax residents are taxed on income earned both in Greece and abroad, while non-residents are taxed only on income with a source in Greece.

Income tax

Income tax rates for individuals vary depending on the level of income:

• 9% on the first 10,000 euros of income per year
• 22% on income between €10,001 and €20,000
• 28% on income between €20,001 and €30,000
• 36% on income between €30,001 and €40,000
• 44% on income over €40,000

These rates apply separately to each category of income and not to the whole amount.

Tax on rental income from real estate

If an individual receives income from rental real estate, it is taxed as follows:

• 15% on income up to 12,000 euros
• 35% on income between €12,001 and €35,000
• 45% on income over 35,000 euros

A 5% deduction is automatically deducted to cover the costs of maintaining the property.

Capital Gains Tax

The sale of real estate or other assets in Greece is subject to a capital gains tax of 15%. In some cases, exemption from the tax is possible if the property has been owned for a certain period of time or if other conditions are met.

Social contributions

Social security is compulsory for all working citizens and residents. Employees pay approximately 15.5% of their wages as social contributions, while employers cover 24.56%.

Tax deductions and exemptions

The taxation system in Greece provides for certain deductions that allow you to reduce the amount of tax. For example, it is possible to partially reduce taxable income through medical expenses, donations, and certain social benefits. The possibility and amount of deductions depend on the personal tax situation of the citizen.

These tax rules help taxpayers to better plan their personal budget and to comply with tax obligations, which is an important aspect when living and doing business in Greece.

Corporate Taxes and Taxes for Legal Entities in Greece

Taxation of legal entities in Greece includes a number of mandatory fees and taxes, among which the main one is the corporate tax. The country offers competitive tax rates for companies, encouraging investment and business development.

Income Tax

Companies in Greece are subject to income tax at a rate of 22%. This tax applies to profits earned both within Greece and abroad (for tax residents). Non-residents pay tax only on income earned in Greece. Income tax returns are required to be filed annually.

Tax on dividends

Dividends paid to shareholders are taxed at a rate of 5%. This tax is withheld at source and is considered final for individuals. For foreign shareholders, a preferential rate or exemption from tax may apply based on international double taxation agreements.

Value Added Tax (VAT)

VAT in Greece is 24%, but reduced rates of 13% and 6% apply for certain goods and services. Companies that sell goods or services are required to register for VAT and file regular returns.

Capital Gains Tax for Companies

Gains realized from the sale of assets are subject to capital gains tax. The rate depends on the type of assets and the length of time they have been owned. In most cases, gains from the sale of commercial real estate or shares are taxed at the income tax level.

Social contributions for employers

In addition to basic taxes, companies are required to pay social contributions on behalf of their employees. These contributions amount to approximately 24.56% of payroll and cover the costs of health insurance, pension contributions and other social needs.

Special taxes and fees

Some companies are required to pay additional taxes depending on the type of business. For example, the hospitality industry and some retail businesses are subject to special levies designed to support local infrastructure and the tourism industry.

The Greek tax system provides legal entities with transparent and clear tax rules, which contributes to the ease of doing business and maintaining high standards of tax discipline.

Cost of Living in Greece

Greece attracts many people because of its climate, culture and relatively affordable cost of living. Let's look at the main categories of expenses: food, transportation, housing, utilities, and entertainment.

Food

Food prices in Greece vary by region and type of store. On average, the monthly grocery costs for one person are around 200-300 euros. Approximate prices for basic products:

• Milk (1 liter): 1,55 €
• Rice (1 kg): 2,51 €
• Local cheese (1 kg): 13,00 €
• Beef (1 kg): 12,99 €
• Bananas (1 kg): 1,84 €
• Tomatoes (1 kg): 1,98 €
• Onions (1 kg): 1,11 €
• Water (1.5 liters): 0.87 €
• Local beer (0.5 liter): 1,65 €
• Cigarettes (Marlboro pack): 4,60 €

Transportation

Public transportation in Greece is affordable and convenient. Fare:

• Single ride ticket: 1,20 €
• Monthly pass: about 30 €
• Cab (boarding): 4,00 €
• Cab (1 km): 1,00 €

Fuel prices:

• Gasoline (1 liter): about 1,90 €
• Diesel (1 liter): approx. 1,77 €

Lodging

The cost of renting accommodation depends on the city and location. Average prices:

• 1-bedroom apartment in the center: 413 €
• 1-bedroom apartment on the outskirts: 346 €
• 3-bedroom apartment in the center: 715 €
• 3-bedroom apartment on the outskirts: 648 €

Buying real estate:

• Price per m² in the center: about 2,700 €
• Price per m² in the outskirts: approx. 2 500 €

Utilities

Monthly utility costs for an 85 m² apartment:

• Electricity, heating, water, garbage collection: about 208 €
• Internet (60 Mbps and above): approx. 31 €
• Cell phone (with 10 GB of data): approx. 19 €

Entertainment

Prices for entertainment and leisure activities:

• Movie ticket: about 8 €
• Fitness club membership: about 30 € per month
• Dinner in a mid-range restaurant for two people: about 40-50 €

The overall cost of living in Greece depends on lifestyle and preferences, but in general it remains affordable compared to other European countries.

Easy to obtain a Greek residence permit

With One World Migration, the process of obtaining a residence permit in Greece will be simple and straightforward. We provide comprehensive residence permit services including assistance with documents, tax and legal aspects. Our experts will help you to take into account all the nuances to successfully complete the process of obtaining residency in Greece.