Taxes & Tax number

One of the first things you should do when you decide to settle in Greece, or buy property, is register for a Tax number (A.F.M. – pronounced aa – fee - mee). An AFM number is required to buy a car or motorcycle, to rent or buy property and to legally work in Greece (for National Insurance and tax).

The local Tax Office (Eforia) is the place to do this.

Documents required are:

• Tax number (A.F.M)
• photocopy of passport
• photocopy of birth certificate

Once you have an AFM (Tax) number, you are required to submit a yearly tax return in Greece, regardless of income, i.e. even if it is a nil return. In all cases you should consult an accountant.

When buying property on Crete

When buying property open your own bank account in Crete and make any payments in Crete from this account. When transferring money into your Greek bank account make sure you get a copy of the money transfer order and a pink slip from the Greek bank for tax purposes. This will prove where the money originated and that tax has already been paid on it.

INCOME TAX From the British Embassy's 'Notes on Greece '..

Income tax is payable by all persons having income arising in Greece, regardless of nationality or place of residence. The total income acquired in the immediately preceding financial year is subject to income tax after the deduction of allowances and exemptions provided for.
There is a bilateral taxation convention between the United Kingdom and Greece whose object is to avoid double taxation and the prevention of fiscal evasion with respect of taxes on income, however, according to the Convention, persons are obliged to submit their tax declaration to the local tax authorities IN THEIR COUNTRY OF RESIDENCE irrespective of where his/her income arises.
For example: a pensioner living in Greece on his/her U.K. pension must submit a declaration to the local Greek Tax Office. The Ministry of Finance will then, upon request, issue certificate for use with the UK Tax Authorities stating that the pensioner in question has been taxed in Greece.
More information can be obtained from the Board of Inland Revenue, Somerset House, London S.W.2, and locally from the Greek taxation authorities or Ministry of Finance.
Information courtesy of Carol Palioudakis www.livingincrete.net and from her book "Living in Crete. A Guide to Living, Working, Retiring & Buying Property in Crete"