Answer ... Non-resident corporations and legal entities are taxed in Greece on their Greek-source income only. Greek-source income includes income from business activities carried out via a Greek permanent establishment, income from Greek immovable property and dividends, interest and royalties. For non-resident legal entities, capital gains from the sale of shares in a Greek legal entity are not considered as Greek-source income, unless derived by a Greek permanent establishment.
Answer ... Subject to any applicable double tax treaty, payments by corporate taxpayers to non-residents attract withholding tax at the following rates.
Dividends: Dividend payments are taxed at a rate of 10%. However, the rate is zero for dividends paid to eligible entities (under Annex I, Part A of Directive 2011/96/EU), provided that the shareholder entity:
- holds at least 10% for at least 24 months in the distributing entity;
- is an EU tax resident and is not considered a resident of a non-EU country based on the relevant double tax treaty; and
- is subject to one of the taxes listed in Annex I, Part B of Directive 2011/96/EU, without the possibility of an option or exemption.
Interest and royalties: Interest payments are taxed at a rate of 15%, while royalty payments are taxed at a rate of 20%. However, the rate is zero for interest or royalties paid to eligible entities (under the Annex to Directive 2003/49/EU), provided that:
- the beneficiary has held directly at least 25% of the share capital or voting rights of the paying entity for at least 24 months;
- the paying entity has held directly at least 25% of the share capital of the beneficiary for at least 24 months; or
- another legal entity has held directly at least 25% of the share capital of both the paying entity and the beneficiary for at least 24 months; and
- is an EU tax resident and is not considered a resident of a non-EU country on the basis of the relevant double tax treaty; and
- is subject to one of the taxes listed in Article 3 of Directive 2003/49/EU, without the possibility of an option or exemption.
Technical, management, consulting and similar services rendered by the local permanent establishment of a company not established in a EU/EEA country: 20%
Answer ... A foreign tax credit is available under the domestic legislation. The foreign tax credit cannot exceed the amount of the corresponding Greek tax. In the case of dividends received from an EU company where the participation exemption conditions are not met (see question 4.2), an underlying tax credit is also granted.
Answer ... The Greek law does not provide for an exit tax. However, transfer of functions rules apply, which provide for transfer pricing adjustments in case of intra-group restructurings involving functions, assets, risks, opportunities, intangibles and/or goodwill, where any transfer or licensing thereof was not made at an arm’s-length price.