Greece Tax Deductions

• Corporate Income Tax Deductions:
  • Business expenses that are necessary and directly related to the company's activities are deductible.
• Deductible expenses include:
  • Salaries and wages.
  • Rent and utilities.
  • Cost of goods sold.
  • Interest expenses (subject to limitations).
  • Depreciation of assets (according to established rates).
  • Research and development expenses (with specific conditions).
  • Losses can be carried forward for five years.
• Individual Income Tax Deductions:
  • Certain expenses are deductible from individual income tax.
• Deductible expenses include:
  • Social security contributions.
  • Certain medical expenses (with limitations).
  • Donations to recognized charitable organizations (with limitations).
  • Mortgage interest payments (for primary residence, with limitations).
  • Specific expenses related to professional activities.
  • Taxpayers may be eligible for tax credits based on family circumstances.
• Value Added Tax (VAT) Deductions:
  • Businesses registered for VAT can deduct input VAT from output VAT.
  • Deductible input VAT includes VAT paid on goods and services used for business purposes.
  • Specific rules apply to the deductibility of VAT on certain expenses (e.g., entertainment, vehicles).
  • There are some limitations to deductable VAT.
• Real Estate Tax Deductions:
  • There are some reductions to the ENFIA real estate tax, under specific conditions.
  • Rental expenses are deductable from rental income.
• Interest Deductions:
  • Interest expenses are deductible if they are related to business activities.
  • Limitations may apply to interest deductions, particularly concerning related-party transactions.
• Depreciation:
  • Depreciation of tangible and intangible assets is deductible.
  • Depreciation rates and methods are defined by Greek tax law.
• Charitable Donations:
  • Donations to approved charitable organizations are deductible, with limitations.
• Business Losses:
  • Business losses may be carried forward for a number of years, defined by Greek tax law.