Taxation News – foreign tax residents

Taxation News – 10th Issue (September 2016)-foreign tax residents


  • Withholding tax on the interest obtained from natural and legal persons that do not have their tax residence in the Greece and do not maintain a permanent establishment in Greece
  • The Council of State changes the taxation for foreign tax residents, Separate tax declarations for spouses with different tax residence

On 29 June 2016, the Council of State issued the No 1445/2016 decision and clarified the issue of the meaning of art. 4, para. 1 L. 4172/2013 (Income Tax Code) with respect to tax residence of
a natural person in Greece.

Specifically, in order to determine if an individual has a domicile in Greece, all the relevant factors must be taken into account. Especially the existence of household, the physical presence of
him/her, the members of his/her family (which does not include only the spouse and his/her children),the place of performance of its professional activities, the place where its property
interests reside, the place of administrative links to public authorities and institutions (insurance, professional, social), the place of the development of its political, cultural or other activities.
Additionally, under the general social and moral attitudes of this period and depending on the socio-economic data of the spouses, the separate residence of them is possible. Thus, if a
married individual is not obligated to submit income tax return in Greece, on the ground that it is not Greek tax resident, it is not obliged to submit a joint tax declaration with his or her spouse,
solely because the spouse, according to art. 4 para. 1 of the above law meets the criteria to qualify as a Greek tax resident, irrespective whether the obligation to submit a joint declaration is
or is not consistent with precedent force provisions.

Moreover, the electronic system of the tax declarations’ submission does not accept different declarations from spouses, in case one of them is Greek tax resident. However, the said system
should be adapted to the rules of tax law and serve the needs of their correct application and not the opposite.

In conclusion, if an individual does not qualify as Greek tax resident, a double residence issue is not raised. Therefore, there is no need to settle it (residence issue) and remove the conflict of
taxation powers between Greece and the other State, which results the application of the Double Taxation Convention between them

  • Alterations to tax provisions


  • Tax on Retail Sale in front of the Polish Parliament


  • L. 112/2016 on the approval of the Urgency Enactment No. 41/2015 for the amendment of certain normative acts, as well as on the provision of certain budgetary measures


  • The EU Commission proposal for an EU anti-tax avoidance directive was welcomed by the EU Parliament
  • BREXIT: potential tax implications on multinational companies

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