Once you have moved to Greece you must learn about the tax system as it is very different from the UK.
Greece has a double taxation treaty with the UK so that expats do not have to pay tax in both countries so if you are a permanent resident in Greece then you will only pay tax here.
Before you can do anything you will need to obtain a Tax number
AFM, pronounced af-fem-me, is a unique tax identification number which you obtain from your local tax office and is needed to do various things and should be kept in a safe place along with your passport and birth certificate.
You will need an AFM:
– To open a bank account
– Pay property purchase tax
– To quote on a contract of sale (if the purchase is in your name)
– To obtain a phone line
– To change utilities into your name
– To rent accommodation with a lease agreement
– To complete your property declaration
– To complete your annual income tax declaration (E1- compulsory for everyone owning a property in Greece whether Greek, foreigner, full time or part time resident)
– If you wish to open or buy a business in Greece because it is also used by the FPA (VAT) office to track the VAT you collect or claim.
To obtain your AFM:
You need to complete the form M1, which asks for your name, date of birth, passport number, expiry date and place of issue as well as the first and surnames of your father and mother. You will also have to provide an address and phone number in Greece where you can be contacted, or at least have messages sent to. Take along your passport with you, plus photocopies.
The normal opening hours of the tax office are 08:00 till 13:30 except public holidays, it is advised to get there early as there may be a long wait!
Once you have obtained an AFM number you are registered with the tax authorities and are required to submit a yearly tax return in Greece, regardless of income.
The tax year runs from January to December and tax returns are due by the following February to April (depending on whether you have a business or do an individual tax return- the latter is due later)
Net Income For Greece Residents
Income (net) € Tax Rate Bracket tax/€
0 to 11,000 0% 0
11,001 to 12,000 15% 300
12,001 to 23,000 30% 3,000
Over 23,000 40%
Everyone should consult a Greek accountant for advice on their individual circumstances regarding taxation and the yearly changes, for a simple straightforward annual tax return an accountant will charge around 50 to 100 Euros.