The sources of international tax law in Greece are determined by a constitutionally structured hierarchy of norms comprising the Constitution, European Union law, ratified international agreements, domestic legislation, administrative guidance and judicial interpretation.

The constitutional framework is foundational. Article 78 of the Greek Constitution enshrines the principle of legality in taxation, requiring that the essential elements of any tax be established by formal statute. Article 4(5) establishes the principle of equality in public burdens according to ability to pay, while the general principle of proportionality also applies in tax matters.

Of particular importance for international taxation is Article 28(1), which provides that international conventions, once ratified by statute and entered into force, form an integral part of domestic law and prevail over any contrary statutory provision. Consequently, double taxation treaties (DTT) and other ratified tax treaties have supra-legislative force in the Greek legal order, although they remain subordinate to the Constitution.

European Union law constitutes a distinct and binding source of international tax law. As an EU Member State, Greece is bound by the Treaties, secondary legislation and the jurisprudence of the Court of Justice of the European Union. EU law enjoys primacy over conflicting domestic provisions and significantly influences the design and interpretation of Greek international tax rules.

Administrative guidance is issued by the Independent Authority for Public Revenue (AADE) in the form of circulars, interpretative guidelines and other instructions concerning the application of domestic tax law and tax treaties. Such instruments are binding on the tax administration but do not formally bind the taxpayers nor the Courts.

Judicial interpretation plays a central role in shaping international tax law in Greece. The Council of State (Supreme Administrative Court) is the highest judicial authority in tax matters and has developed substantial jurisprudence on the interpretation of treaty provisions, the interaction between domestic law and DTAs, the application of anti-avoidance principles and the impact of EU law on direct taxation. In interpreting tax treaties, Greek courts frequently rely on the OECD Model Convention and its Commentary as persuasive interpretative materials, in accordance with the principles reflected in the Vienna Convention on the Law of Treaties.

Greece maintains an extensive network of double taxation treaties, numbering 58 treaties in force. The structure and wording of Greek DTT generally follow the OECD Model Convention, particularly with respect to provisions on permanent establishment, business profits, associated enterprises, dividends, interest, royalties and exchange of information.

In Greece, domestic and international sources of tax law are hierarchically structured and their relationship is governed by constitutional principles, EU obligations and statutory rules.

At the highest level, the Constitution establishes the framework for taxation, enshrining the principles of legality, equality and proportionality. Importantly, Article 28(1) provides that ratified international treaties, including double taxation agreements (DTAs), become an integral part of domestic law and prevail over conflicting domestic legislation, though they remain subordinate to the Constitution itself.

European Union law occupies a similarly elevated position. As an EU Member State, Greece is bound by EU Treaties, secondary legislation and the case law of the Court of Justice of the European Union. EU law takes precedence over conflicting domestic provisions and heavily influences the design and interpretation of Greek international tax rules, including the transposition of directives such as ATAD I & II, the Parent-Subsidiary Directive and the Interest and Royalties Directive.

Greece’s double taxation treaty (DTT) network is largely aligned with the OECD Model Tax Convention, particularly regarding permanent establishment, business profits, associated enterprises, dividends, interest, royalties and exchange of information. Greek treaties generally follow OECD standards, including reliance on the arm’s-length principle for intra-group transactions and the allocation of taxing rights between source and residence jurisdictions.

Importantly, Greece does not use the UN Model Convention in any of its DTTs.

1.4 Multilateral Instrument

Greece is a signatory to the Multilateral Instrument (MLI) and has fully ratified it. The country signed the MLI on 7 June 2017 and ratification was completed through Law 4768/2021. The instrument of ratification was deposited with the OECD on 30 March 2021 and the MLI entered into force for Greece on 1 July 2021.

General Principle

The general principle governing the territorial scope of taxation in Greece is based on a combination of the residence and source principles, as codified in the Income Tax Code (Law 4172/2013).

Under Greek law, tax residence is the primary determinant of unlimited tax liability. Individuals or legal entities that are Greek tax residents are subject to taxation on their worldwide income.

Non-residents are subject to taxation in Greece solely on income derived from Greek sources. Greek-source income includes business profits earned through a permanent establishment in Greece, employment exercised in Greece, income from immovable property located in Greece and certain passive income such as dividends, interest and royalties arising from Greek activities.

The scope of Greek-source taxation may be limited by the provisions of applicable double taxation agreements, particularly regarding business profits, permanent establishments and withholding taxes.

Special Territorial Considerations

Greece does not operate a system of separate tax regimes comparable to those found in certain other jurisdictions. The Greek tax system applies uniformly throughout the national territory.

However, certain specific territorial regimes exist within the constitutional and EU framework, as follows.

• Mount Athos (Agion Oros): Under Article 105 of the Greek Constitution, the autonomous monastic community possesses administrative independence. While Greek law generally applies, historical and administrative particularities may affect the application of certain taxes.
• Aegean Islands and Insular Regions: Certain islands benefit from reduced VAT rates and excise exemptions, in line with EU law provisions and regional development policies. These regimes are primarily indirect-tax measures but have indirect effects on the overall tax burden.

Individuals are deemed tax residents of Greece where they maintain in Greece a permanent or principal residence, a habitual abode, or the centre of their vital interests. The centre of vital interests is determined on the basis of an overall evaluation of the relevant facts and circumstances, including, inter alia, family ties, professional activities, business interests and financial connections.

An individual who is physically present in Greece for more than 183 days in aggregate within any twelve-month period is considered a Greek tax resident as from the first day of presence in Greece, subject to an exception for individuals present exclusively for touristic, medical, therapeutic, or similar private purposes.

In addition, individuals serving abroad as consular, diplomatic, or other public officials of equivalent status, as well as Greek nationals employed in the public sector and assigned to duties abroad, are considered as Greek tax residents.

The above apply subject to the terms of any applicable double taxation treaty.

Individuals who qualify as tax residents of Greece are subject to taxation on their worldwide income, irrespective of the source from which the income arises.

With respect to foreign-source income, Greece provides relief for double taxation. Unilateral relief is generally available in the form of a foreign tax credit for income tax paid abroad, up to the amount of Greek tax attributable to that income. In addition, Greece has an extensive network of double taxation treaties, which may allocate taxing rights between jurisdictions and provide for credit or exemption mechanisms, depending on the treaty provisions.

Special tax regimes may apply in specific cases, such as the alternative taxation regimes introduced in recent years for high-net-worth individuals transferring their tax residence to Greece, foreign pensioners and certain employees or self-employed individuals relocating to Greece, subject to statutory conditions.

Individuals who are not tax residents in Greece are subject to tax in Greece only on income arising from Greek sources.

Greek-source income generally includes, inter alia:

• employment income derived from services rendered in Greece;
• business income attributable to a permanent establishment or fixed base maintained in Greece, or otherwise derived from business activities carried out in Greece;
• income from immovable property situated in Greece, including rental income and capital gains from the disposal of Greek real estate;
• capital income arising in Greece, such as dividends distributed by Greek entities, interest paid by Greek residents or permanent establishments and royalties paid for the use of rights within Greece; and
• capital gains from the transfer of shares or other participations in Greek entities, subject to the specific conditions set out in the Income Tax Code.

Greek-source income of non-resident individuals is taxed in accordance with the rules applicable to the relevant income category. Certain types of income (eg, dividends, interest and royalties) are typically subject to withholding tax at source, which may exhaust the Greek tax liability where provided by law. Other income, such as rental income or business profits, is subject to tax by filing a Greek income tax return.

The taxation of non-residents is subject to the provisions of any applicable double taxation treaty, which may limit Greece’s taxing rights or provide for reduced withholding tax rates or exemptions.

A legal entity is considered a tax resident of Greece for any given tax year if any of the following criteria are met:

• the entity has been incorporated or established in accordance with Greek law;
• the entity has its registered (statutory) seat in Greece; or
• the entity’s place of effective management is located in Greece at any time during the tax year.

The place of effective management is determined in accordance with both domestic provisions and OECD principles, taking into account factual and substantive elements, such as:

• the place where day-to-day management is exercised;
• the place where strategic decisions are taken;
• the place where the annual general meeting of shareholders or partners is held;
• the place where the accounting books and records are kept;
• the place where meetings of the board of directors or other executive management body are held; and
• the residence of the members of the board of directors or other executive management body.

In conjunction with the above, the residence of the majority of shareholders or partners may also be considered. No single factor is conclusive; instead, the totality of facts and circumstances is assessed.

Entities that qualify as Greek tax residents are liable for corporate income tax on their worldwide profits, including profits generated outside Greece. Conversely, entities that are not tax residents in Greece are taxed only on income arising from Greek sources, as long as such profits are attributable to a Greek permanent establishment.

Under the Greek Income Tax Code (Law 4172/2013), the concept of a permanent establishment (“PE”) is defined broadly and in line with internationally accepted principles.

A permanent establishment is generally defined as a fixed place of business through which the business of an enterprise is wholly or partly carried on. The statutory definition expressly includes, inter alia, a place of management, branch, office, factory, workshop, warehouse, mine, oil or gas well, quarry or any other place of extraction of natural resources. A building site or a construction, installation or assembly project constitutes a PE where it lasts for more than three months.

The domestic definition also encompasses a dependent agent PE, arising where a person acting on behalf of an enterprise has and habitually exercises authority to conclude contracts in the name of that enterprise. Activities carried out by an independent agent acting in the ordinary course of its business do not give rise to a PE.

The Greek domestic definition largely reflects the OECD Model Tax Convention; however, it has not formally incorporated the amendments introduced by BEPS Action 7 (in particular, the expanded dependent agent rule and the anti-fragmentation provisions). Notably, the domestic threshold for construction sites (three months) is shorter than the twelve-month threshold provided under Article 5 of the OECD Model Convention.

In the event of a conflict between domestic law and the provisions of an applicable double taxation treaty, the treaty provisions prevail.

Income derived from immovable property situated in Greece is subject to taxation irrespective of the taxpayer’s residence status. The applicable tax treatment depends on whether the recipient is an individual or a legal entity, as outlined below.

• Individuals (tax residents): Greek tax resident individuals are taxed on their worldwide income, including rental income from immovable property. Rental income derived from immovable property is taxed separately from employment or business income at progressive rates. Certain expenses are deemed covered by a statutory deduction mechanism, whereas specific categories of income (eg, compensation for early lease termination) are treated as rental income. Capital gains derived from the transfer of Greek real estate are, in principle, subject to capital gains tax, although the application of this tax has been suspended in recent years pursuant to successive legislative extensions.
• Individuals (non-tax residents): Non-resident individuals are subject to Greek income tax only on income sourced in Greece. Rental income from immovable property located in Greece is therefore taxable in Greece under the same progressive rates applicable to residents. Non-residents are required to file a Greek income tax return for such income. Capital gains from the disposal of Greek immovable property are likewise taxable in Greece (subject to the current suspension of the capital gains tax regime).
• Legal entities: Greek tax resident legal entities are taxed on their worldwide income, including income from immovable property, at the standard corporate income tax rate (22%). Non-resident legal entities are taxed in Greece on income derived from immovable property situated in Greece, at the same corporate income tax rate applicable to resident entities.

The above treatment is subject to the provisions of any applicable double taxation treaty. However, under most treaties concluded by Greece, income from immovable property may be taxed in the state in which the property is situated, in accordance with Article 6 of the OECD Model Tax Convention.

Business taxation in Greece is imposed on the net profits from business activities, determined based on accounting results prepared under Greek Accounting Standards and adjusted in accordance with the provisions of the Income Tax Code (Law 4172/2013).

Business profit is defined, in accordance with Article 21 of Law 4172/2013 (Income Tax Code), as the total income derived from business transactions, after deducting allowable business expenses, tax-deductible depreciation and provisions for bad debts.

Subsequently, tax adjustments are applied, including the disallowance of non-deductible expenses, limitations on interest deductibility under the thin capitalisation rules, transfer pricing adjustments to ensure compliance with the arm’s length principle and specific rules for depreciation and loss carry forwards.

Business profits of self-employed individuals are taxed at progressive personal income tax rates, ranging from 9% to 44%. Corporate profits are taxed at the standard corporate income tax rate of 22%. Tax losses may generally be carried forward for up to five years to offset future profits, subject to statutory limitations.

In addition, Greek corporate taxpayers are required to make advance payments of corporate income tax for the following fiscal year. These prepayments are calculated as a percentage of the current year’s tax liability (typically 80%) and are credited against the final tax due for the next fiscal year.

Passive income, including dividends, interest and royalties, is generally subject to withholding tax at source, with the rate and treatment depending on the type of income and the recipient’s tax residence.

Greece has an extensive network of double taxation treaties, generally based on the OECD Model Tax Convention. Treaty provisions override domestic law where applicable and may reduce or eliminate withholding taxes on dividends, interest and royalties.

Dividends

Individuals

Dividends received by resident or non-resident individuals are generally subject to 5% withholding tax, which exhausts their final income tax liability.

Legal entities

In the case of corporate recipients, it is first necessary to determine whether the conditions of Article 63(1) of the Income Tax Code, implementing the EU Parent-Subsidiary Directive 2011/96/EU (eg, minimum shareholding percentage, minimum holding period, etc), are met. If not, the following distinctions apply.

• Dividends paid to Greek legal entities are subject to withholding tax, which does not exhaust the final tax liability. These dividends are treated as business income (Article 47(2) of the Income Tax Code) and the withheld tax is credited against the final corporate income tax. If the withheld tax exceeds the tax due, the excess is refunded (Article 68(3) of the Income Tax Code).
• Dividends paid to foreign legal entities without a PE in Greece are subject to withholding tax, which exhausts the recipient’s final tax liability, subject to the provisions of any applicable double taxation treaty.

Interest

Individuals

Interest earned by resident or non-resident individuals is subject to 15% withholding tax, which exhausts the individual’s final income tax liability (Articles 37(4) and 64(3) of the Income Tax Code).

Legal entities

In the case of corporate recipients, it is first necessary to determine whether the conditions of Article 63(2) of the Income Tax Code, implementing the EU Directive 2003/49/EC (Interest and Royalties Directive), are met (eg, minimum participation threshold, minimum holding period etc). If not, the following distinctions apply.

• Interest paid to Greek legal entities is subject to 15% withholding tax, which does not exhaust the final tax liability. This interest is treated as business income (Article 47(2) of the Income Tax Code) and the withheld tax is credited against the final corporate income tax. If the withheld tax exceeds the tax due, the excess is refunded (Article 68(3) of the Income Tax Code).
• Interest paid to foreign legal entities without a PE in Greece is subject to withholding tax, which exhausts the recipient’s final tax liability, subject to the provisions of any applicable double taxation treaty.

Royalties

Individuals: Royalties earned by resident or non-resident individuals are subject to 20% withholding tax, which exhausts the individual’s final income tax liability (Articles 39(2) and 64(3) of the Income Tax Code).

Legal entities

In the case of corporate recipients, it is first necessary to determine whether the conditions of Article 63(2) of the Income Tax Code, implementing the EU Directive 2003/49/EC (Interest and Royalties Directive), are met (eg,  minimum participation threshold, minimum holding period etc). If not, the following distinctions apply:

• Royalties paid to Greek legal entities are not subject to a withholding tax (Article 62(5) of the Income Tax Code). Said royalties are treated as business income (Article 47(2) of the Income Tax Code) and taxed accordingly upon filing of the annual income tax return.
• Interest paid to foreign legal entities without a PE in Greece is subject to withholding tax, which exhausts the recipient’s final tax liability, subject to the provisions of any applicable double taxation treaty.

Capital Gains from the Sale of Immovable Property

Individuals

Capital gains from the sale of real estate located in Greece are generally taxable, though the application of the tax has been suspended in recent years through successive legislative measures. When applicable, gains are calculated as the sale proceeds minus acquisition cost and allowable expenses and taxed at a flat rate of 15%.

Legal entities

Capital gains from the sale of immovable property incurred by Greek legal entities are not subject to a withholding tax. It is treated as business income (Article 47(2) of the Income Tax Code) and taxed accordingly upon filing of the annual income tax return.

Capital gains from the sale of immovable property incurred by foreign legal entities without a PE in Greece are not subject to Greek taxation, as they are considered business profits. Taxation arises only if the gains are attributable to a Greek PE.

Capital Gains from the Sale of Shares and Other Derivatives

Individuals

Gains from the sale of shares listed on a regulated market are subject to 15% capital gains tax, provided that the seller holds more than 0.5% of the total shares of the company. Gains from unlisted shares or other derivatives are also subject to 15% capital gains tax. Tax is generally payable upon filing of the annual income tax return.

Legal entities

Capital gains from the sale of shares or other derivatives incurred by Greek legal entities are not subject to withholding tax. They are treated as business income (Article 47(2) ITC) and taxed upon filing of the annual corporate tax return. Certain exemptions may apply, such as the participation exemption for corporate shareholders holding a qualifying percentage of shares for a minimum period.

Capital gains from the sale of shares or other derivatives incurred by foreign legal entities without a PE in Greece are not subject to Greek taxation, as they are considered business profits. Taxation arises only if the gains are attributable to a Greek PE.

Individuals who are tax residents of Greece are taxed on their worldwide employment income, which includes salaries, wages, bonuses, allowances, benefits in kind and other remuneration received in respect of services rendered. The income is subject to progressive personal income tax rates, currently ranging from 9% to 44%.

Non-resident individuals are taxed in Greece only on employment income sourced in Greece, ie, income derived from services physically performed in Greece.

An individual temporarily assigned to Greece may become liable to Greek tax if they are physically present in Greece for more than 183 days in any twelve-month period, unless a specific exemption applies.

Double taxation treaties generally govern the allocation of taxing rights between Greece and the country of residence or the employer, potentially providing relief from double taxation.

Regarding remote work, Greek tax law does not contain rules specifically addressing teleworking arrangements. However, employment income derived from work performed physically in Greece is considered Greek-source income and is taxable in Greece, irrespective of whether the employer is foreign. For Greek tax residents, income from remote work with foreign employers is also fully taxable in Greece. For corporations, there may be permanent establishment implications if remote working arrangements create a fixed place of business in Greece, potentially resulting in Greek corporate tax obligations for the foreign employer.

While Greece broadly follows OECD principles for employment, business profits, capital gains and passive income, it also applies special taxation rules, which create exceptions to the general framework and often involve flat rates, presumptive calculations, or special regimes not explicitly covered in the OECD Model Convention. More specifically:

Special Regimes for High-Net-Worth Individuals, Pensioners and Expatriates

Greece has introduced special tax regimes aimed at attracting high-net-worth individuals, foreign pensioners and other expatriates who relocate their tax residence to Greece. These regimes provide preferential tax treatment that diverges from standard OECD residence-based taxation principles.

For example, qualifying individuals may be eligible for:

• flat taxation on foreign-source income – certain types of income earned abroad (such as dividends, interest, royalties, or employment income) may be taxed at a fixed annual amount or a preferential flat rate, rather than being included in the standard progressive tax scale;
• exemption or reduction of Greek wealth-related taxes – this can include relief from taxation on foreign pensions or income derived from assets held abroad; and
• simplified reporting obligations – certain regimes provide reduced administrative and reporting requirements for qualifying expatriates.

These regimes are designed to encourage relocation and investment in Greece, but they represent a departure from the OECD Model’s standard worldwide income taxation principle, as foreign-source income may be taxed at special flat rates or partially exempted.

Imputed Income and Deemed Income

In addition to conventional forms of income, Greece taxes certain types of imputed or deemed income, calculated on a presumptive rather than an actual basis. Key examples have been outlined below.

• Notional rental income from real estate ownership: Owners of real property may be deemed to earn rental income even if the property is not actually rented out. This notional income is calculated using statutory coefficients based on property type, location and size and is included in the individual’s taxable income.
• Benefits from the use of company-owned assets: Employees or executives may be taxed on the value of private use of company cars, housing, or other assets, which is treated as a non-cash benefit in kind. The valuation of such benefits is determined by fixed rules and included in taxable income.
• Other deemed income categories: In addition to actual income earned by individuals, Greek tax law provides for the taxation of income based on deemed income or “living standards rules” (Articles 31–33 of the Income Tax Code). These rules constitute an indirect method of estimating income, allowing the Greek tax authorities to tax an individual’s ability to maintain a certain standard of living, even if the actual declared income is insufficient or does not fully reflect economic capacity.

This system allows the Greek tax authorities to capture economic benefits arising from ownership or use of assets, even when no direct revenue is realised. Unlike the OECD Model, which generally taxes income based on actual receipts or accruals, Greece’s imputed income rules extend the tax base to cover notional or presumed income, effectively broadening the scope of taxable income.

As of now, Greece has not formally adopted Amount B of the OECD/G20 Two–Pillar Solution into its domestic law or published any official domestic legislative measures implementing it. The Greek transfer pricing framework, as set out in its Income Tax Code and administrative practice, continues to follow the traditional arm’s length principle, as reflected in the OECD Transfer Pricing Guidelines and domestic statutory rules, without a specific Amount B provision in national legislation.

The Greek transfer pricing regime is generally aligned with the OECD Transfer Pricing Guidelines and the arm’s–length principle and the Greek tax authorities require documentation consistent with the OECD three–tiered approach (master file, local file and country–by–country reporting). However, no domestic safe harbour, simplified pricing matrix, or Amount B rule has yet been implemented.

Under the current practice, Greece applies traditional transfer pricing methods to related–party transactions and any reference to OECD guidance (including Amount B) is interpretative and incorporated by reference rather than directly legislated.

If Greece decides to implement Amount B in the future, any domestic rules would need to be enacted through legislation or regulation and could potentially include local adaptations, as jurisdictions have discretion in how to integrate the simplified approach into their domestic transfer pricing systems.

Greece, as a member of the OECD/G20 Inclusive Framework on BEPS, has been engaged in international tax reform discussions, but it has not yet formally adopted or implemented Pillar One Amount A into its domestic legal regime and there is no official Greek government statement specifically articulating a national “position” on Amount A separate from its participation in the Inclusive Framework. Greece’s international tax policy has instead prioritised implementation of Pillar Two (global minimum tax) and other BEPS instruments, consistent with its obligations as an EU Member State.

Greece has implemented the global minimum tax under Pillar Two, primarily by transposing the EU Global Minimum Tax Directive (Council Directive 2022/2523) into domestic law through Law 5100/2024. This implementation brought aspects of the OECD/G20 Pillar Two global minimum tax framework into Greek legislation, in line with the EU’s coordinated approach to ensure a minimum effective level of taxation for large multinational enterprise groups and large domestic groups.

Law 5100/2024 introduces two interrelated mechanisms, the Income Inclusion Rule (IIR) and the Undertaxed Profits Rule (UTPR), collectively referred to as the GloBE rules. Under these rules, an additional amount of tax, known as a top-up tax, is collected whenever the effective tax rate of an MNE or large domestic group in a jurisdiction falls below 15%.

In addition, the Law establishes a framework for a Domestic Minimum Top-up Tax (DMTT), designed to qualify under the Pillar Two rules. The legislation also provides for several safe harbour provisions, including:

• the Qualified DMTT (QDMTT) safe harbour;
• transitional Country-by-Country Reporting (CbCR) safe harbours; and
• the UTPR transitional safe harbour.

The entry into force of the CbCR and UTPR safe harbours is contingent upon the issuance of a Ministerial Decision, which will determine the effective dates. The Law explicitly states that these safe harbours are to be interpreted in accordance with the OECD Model Rules.

The Greek legislation (Law 5100/2024) closely follows the OECD/G20 Pillar Two framework; however, there are some notable deviations and limitations compared with the OECD model rules.

• First, the Law implements only the elections provided under the EU Directive, without incorporating the optional elections or clarifications contained in the OECD Administrative Guidance. As a result, certain features available under the OECD framework (such as additional flexibility in applying the top-up tax or specific treatments under the IIR/UTPR) are not currently reflected in Greek domestic law.
• Second, while the Law introduces the Qualified Domestic Minimum Top-up Tax (QDMTT) and safe harbours (including the CbCR and UTPR transitional safe harbours), the entry into force of these safe harbours depends on Ministerial Decisions, leaving some practical aspects of implementation uncertain.
• Third, although the safe harbours are to be interpreted in accordance with the OECD Model Rules, it is not explicitly stated whether the Greek Tax Administration is bound by the OECD Administrative Guidance for the remaining Pillar Two provisions. This creates some discretion in interpretation and potential divergence from OECD guidance in practice.
• Finally, by following the EU Directive rather than the OECD text directly, the Greek rules align with EU coordination measures, which may limit certain optional OECD provisions, particularly in relation to transitional elections and adjustments for multinational enterprises operating across multiple EU jurisdictions.

Greece does not currently impose a national Digital Services Tax (DST). Nonetheless, the country has been actively engaged in discussions within the European Union on adopting a common DST, which would target revenues from digital activities, including online advertising and digital intermediation services.

In parallel, Greece participates in the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS). The BEPS 2.0 initiative seeks to address the tax challenges arising from the digitalisation of the economy, including the reallocation of taxing rights to market jurisdictions and the establishment of a global minimum tax. The implementation of these multilateral measures is expected to reduce the need for unilateral digital services taxes. However, the rollout of BEPS 2.0, particularly Pillar One, has been slower than initially anticipated, creating some uncertainty regarding the timing and scope of a coordinated international solution.

Tax Fraud and Tax Evasion (Criminal Offences)

Under Greek law, tax evasion is considered a criminal offence and acts constituting intentional evasion are prosecuted both administratively and criminally. The following examples are established under Article 79 of the Greek Code of Tax Procedure (Law 5104/2024).

A tax evasion crime arises where a person, with the intent to avoid payment of tax, conceals taxable income from any source by failing to file returns, submitting false returns, or entering fictitious expenses in the accounts to reduce the tax base. It also includes failure to pay or incorrect payment of VAT, withholding taxes, or other levies and obtaining refunds through fraudulent concealment of facts.

The issuance, acceptance or falsification of false or fictitious tax documents (eg, invoices) is treated as tax evasion if it is connected with tax evasion.

Thresholds for classifying conduct as a felony vary by tax type (eg, EUR100,000 for income tax, EUR50,000 for VAT), with higher thresholds leading to more severe penalties.

Tax Avoidance and Abusive Tax Planning

The concepts of tax avoidance and abusive tax schemes are addressed in Greek domestic tax law through anti–abuse rules, with a focus on arrangements that seek to artificially reduce tax liabilities without overtly violating specific statutory provisions, as outlined below.

Tax avoidance is generally understood in academic and legal doctrine as the use of legal means to achieve tax outcomes that reduce or eliminate tax liability, but it can verge on abuse when it exploits gaps, loopholes, or unintended advantages in the law.

To counter such arrangements, Greek law incorporates a General Anti–Abuse Rule (GAAR) in the Tax Procedure Code (Article 39 of Law 5104/2024, formerly Article 38 of Law 4174/2013). Under this rule, the Greek Tax Administration may disregard any arrangement or series of arrangements that have been established with the main purpose or one of the main purposes of obtaining a tax advantage that frustrates the object or purpose of the applicable tax provisions. Such rules target artificial structures that lack economic substance.

The GAAR is broad in scope and may be applied even in the absence of a specific statutory anti–avoidance provision targeting a particular type of scheme. It functions as a substance–over–form doctrine, allowing tax authorities to recharacterize or disregard artificial arrangements for tax purposes.

Indicators and Criteria for Abuse or Evasion

In practice, Greek tax authorities and courts look to a range of factual and legal indicators to distinguish legitimate tax planning from abusive schemes or evasion, such as:

• absence of economic substance – transactions executed primarily for tax benefit with little or no commercial rationale other than tax savings (substance vs form);
• fictitious documentation – use of fake invoices or records, or manipulation of accounting entries to artificially reduce taxable income;
• concealment of income – failure to report or deliberately under–report cross–border income or taxable events; and
• complex cross–border structures without business purpose – arrangements involving related parties in low–tax jurisdictions that lack a valid commercial justification (while specific criteria are not codified in a single statutory list, interpretation under the GAAR allows tax authorities to challenge such structures if the main purpose is tax avoidance).

In the context of cross–border transactions, Greece also applies EU Anti–Tax Avoidance Directive (ATAD) rules (eg, interest limitation, controlled foreign company rules) and transfer pricing rules to counter BEPS–type schemes and ensure arm’s length treatment.

Greek tax legislation has incorporated a number of anti-tax avoidance rules, both general (general anti-abuse rule – GAAR) and targeted ones (targeted anti-abuse rule – TAAR). These are as follows.

GAAR Provided Under Article 39 of Law 5104/2024

GAAR was initially based on the European Commission’s Recommendation on Aggressive Tax Planning (EU GAAR), published on 6 December 2012 (C(2012) 8806 final). By virtue of Article 13 of Law 4607/2019, GAAR was amended to transpose Article 6 of the Anti-Tax Avoidance Directive (EU) 2016/1164 (ATAD).

GAAR provides that tax authorities should ignore any arrangement or series of arrangements that have been put into place for the main purpose or one of the main purposes of obtaining a tax advantage that defeats the object or the purpose of the applicable tax law and are not genuine, having regard to all relevant facts and circumstances.

TAAR for Tax Losses Forfeiture Provided Under Article 27 of Law 4172/2013

TAAR refers to the fact that it is not possible to carry forward losses in the event of a change of more than 33% of the direct or indirect holding or the voting rights in a legal person or entity, provided that there is also a change of activity of the legal person or entity that exceeded 50% of its turnover in relation to the immediately preceding tax year from the change of shareholding structure or voting rights.

TAAR for Corporate Restructurings Provided Under Article 56 of Law 5162/2024

TAAR on corporate restructurings is aligned with the provisions of the 2009/133/EU Directive and applies to all restructurings (mergers, full or partial demergers, spin-offs, share exchanges or transfers of the registered seat) effected under Articles 47 to 55 of Law 5162/2024. By virtue of TAAR, to the extent that tax avoidance or tax evasion is identified as the main or one of the main objectives of the companies under restructuring, all benefits granted in accordance with the above-mentioned articles are fully or partially disallowed. The fact that a transaction is not performed for valid economic reasons, such as restructuring or rationalisation of activities, may constitute evidence that the main or one of the principal objectives of the transaction is tax avoidance or tax evasion.

Other Rules

There are other anti-avoidance rules included in the Greek tax legislation, such as thin capitalisation rules (see under Section IX.vi), as well as CFC rules, which, in general, provide that the undistributed passive income of a foreign legal person or entity satisfying certain conditions shall be attributed to and taxed by the Greek resident controlling shareholder.

Greece maintains two distinct lists of jurisdictions for tax purposes. The first list includes non-cooperative jurisdictions, comprising states or territories that fail to meet international standards on tax transparency, exchange of information, or compliance with anti-BEPS measures. The second list covers jurisdictions with preferential tax regimes, namely those with corporate tax rates significantly lower than the Greek statutory rate or that provide other substantially beneficial tax treatment. Both lists are published and updated annually by the Greek tax authorities in accordance with domestic law and EU coordination frameworks.

Under Article 23 of the Greek Income Tax Code (Law 4172/2013), all expenses paid to a tax resident in a non-cooperative jurisdiction or subject to a preferential tax regime are generally non-deductible. Deductibility may only be allowed if the taxpayer can demonstrate that such expenses relate to genuine and ordinary transactions and that they do not result in the transfer of profits, income, or capital with the purpose of tax avoidance or evasion. This limitation ensures that transactions with high-risk or low-tax jurisdictions cannot be used as a conduit for artificially reducing the Greek tax base.

However, this provision does not preclude the deduction of expenses paid to a resident in a European Union (EU) or European Economic Area (EEA) Member State, provided that there exists a legal framework for the exchange of tax information between Greece and that Member State. This distinction reflects Greece’s alignment with EU transparency standards while safeguarding against cross-border tax abuse involving high-risk or preferential jurisdictions.

In addition to the domestic list, Greece, as an EU Member State, also applies the EU list of non–cooperative jurisdictions for tax purposes compiled by the Council of the European Union. This EU list identifies jurisdictions that fail to meet minimum standards on tax transparency, fair taxation and measures against base erosion and profit shifting (BEPS).

Greece maintains a wide framework of mandatory reporting obligations for taxpayers and intermediaries, designed to enhance transparency, prevent tax abuse and detect both domestic and cross-border tax fraud. These obligations complement the criminal and civil penalties for tax evasion and the general anti-abuse rules provided under the Greek Income Tax Code (Law 4172/2013) and the Code of Tax Procedure (Law 5104/2024).

Tax Return Filing and Financial Reporting

Annual tax returns must be filed by all individuals and legal entities resident in Greece, reporting all income, profits, capital gains and deemed income.

Financial statements prepared under Greek Accounting Standards are submitted for corporate taxpayers and tax adjustments are disclosed to reconcile accounting profits with taxable income.

Cross-Border Reporting Obligations

Transfer pricing documentation

Greek taxpayers engaging in related-party transactions must maintain master files and local files demonstrating compliance with the arm’s-length principle. These documents must be submitted to tax authorities upon request.

Country-by-country reporting (CbCR)

Large multinational enterprises with consolidated revenue exceeding EUR750 million must file CbCR reports with the Greek Tax Administration, providing detailed information on income, taxes paid and economic activity by jurisdiction.

Reporting of cross-border arrangements (DAC6/EU Mandatory Disclosure Rules)

Intermediaries and taxpayers must disclose certain cross-border transactions that meet specified “hallmarks” indicative of potential tax avoidance. Greece implements the EU Directive 2018/822 (DAC6), requiring disclosure within 30 days of the arrangement being made available, ready for implementation or first executed.

Mandatory Reporting of Financial Accounts and Beneficial Ownership

Automatic exchange of financial account information

Greece participates in the Automatic Exchange of Financial Account Information (AEOI) under the Common Reporting Standard (CRS). Financial institutions report account balances, interest, dividends and other income earned by non-residents to the Greek authorities, who then exchange this information with other jurisdictions.

Beneficial ownership register

Greek legal entities must report beneficial ownership information to the national registry. This enables authorities to trace ultimate owners and detect potential schemes designed to obscure tax liabilities.

Greek tax authorities are empowered with comprehensive investigative tools, including access to records, audits (desk and field), unannounced inspections and, in serious cases, judicially authorised searches and raids. These powers are complemented by cross-border information exchange and mandatory reporting frameworks, thereby ensuring a robust system for detecting tax fraud, evasion and abusive arrangements.

Access to Accounting Records and Documentation

Tax authorities have the right to request and examine all accounting records, financial statements and supporting documentation of taxpayers. This includes invoices, contracts, bank statements and electronic records. Records must be provided in the format and within the timeframe specified by the authorities or failure to do so may result in administrative penalties.

Authorities can also access electronic accounting systems, tax returns and VAT submissions to perform reconciliations and identify inconsistencies.

Audits and Tax Examinations

Desk audits and field audits are routinely conducted to verify compliance. Field audits may involve reviewing books and documents on the taxpayer’s premises. Audits can examine domestic and cross-border transactions, with particular focus on related-party dealings, intra-group arrangements and transactions with non-cooperative or preferential jurisdictions.

Transfer pricing audits are specifically empowered to assess whether transactions comply with the arm’s length principle and to apply adjustments where necessary.

Searches and Fiscal Perquisitions

In cases of suspected tax fraud or evasion, authorities may request judicial authorisation to conduct searches, fiscal perquisitions or raids at the taxpayer’s premises.

Cross-Border Cooperation and Information Gathering

The Greek authorities may request information from foreign tax authorities under double taxation treaties, EU directives (DAC6, CRS) and OECD frameworks, enabling investigations into cross-border tax avoidance and evasion schemes. The authorities can also analyse data obtained through reporting obligations, such as CbCR, VAT returns or beneficial ownership registries, to detect inconsistencies and undeclared income.

Enforcement Measures Following Investigation

Upon detecting fraud, the tax administration can:

• adjust the taxpayer’s taxable income;
• deny deductions or exemptions;
• impose administrative fines and interest; and
• refer cases for criminal prosecution where intentional fraud is identified, which can result in imprisonment or substantial fines.

The Code of Fiscal Procedure (Law 5104/2024) establishes the general framework for administrative penalties, including fines for failure to submit or for inaccurate tax returns, non-compliance with withholding obligations on cross-border payments, late payment of taxes and breaches of bookkeeping and documentation requirements.

In the international tax context, penalties may arise in particular from:

• non-compliance with transfer pricing documentation and reporting obligations;
• incorrect application of withholding taxes on dividends, interest, or royalties paid abroad;
• failure to apply controlled foreign company (CFC) rules, hybrid mismatch rules, or the general anti-avoidance rule (GAAR);
• non-compliance with reporting obligations under the EU Directives on Administrative Cooperation (DAC), including mandatory disclosure rules (DAC6); and
• failure to provide information in the framework of exchange of information procedures.

The authority responsible for imposing and enforcing administrative tax penalties is the Independent Authority for Public Revenue (AADE), acting through its competent audit, assessment and collection services. AADE conducts tax audits, issues tax and penalty assessment acts and oversees enforcement and collection measures.

Taxpayers may challenge penalty assessments through an administrative appeal before the Dispute Resolution Directorate (within AADE) and subsequently before the competent administrative courts. Judicial review ultimately lies with the Council of State (Supreme Administrative Court) on matters of law.

Legal provisions governing criminal tax evasion have been incorporated in the Greek Code of Fiscal Procedure, pursuant to which tax evasion is considered to be committed by persons who intentionally:

• avoid the payment of taxes (eg, income tax, uniform tax on the acquisition of ownership, special real estate tax, VAT, turnover tax, premium tax, withholding and imputable taxes, fees or contributions and shipping tax) by not paying or paying incorrectly or reimbursing or setting off or deducting or withholding taxes; and
• issue false or fictitious tax records, as well as receiving fictitious tax records or altering such records, irrespective of whether they evade paying taxes or not.

Under the Greek penal system, legal entities do not bear criminal liability. Accordingly, individuals who are engaged in the effective management, administration and representation of a legal entity (either by holding specific executive positions or by exercising de facto management duties) are considered perpetrators or accomplices in tax evasion.

To that end, criminal liability due to tax evasion is correlated with the exact time at which a potential tax infringement took place and therefore may affect numerous persons who held one of the aforementioned positions during the time period starting from the fiscal year in question and onwards, thereby bearing joint tax liability in accordance with Article 49 of the Greek Code of Fiscal Procedure.

In the event of the commission or attempted commission of a tax offence under the Greek Code of Fiscal Procedure, a prompt criminal complaint must be filed by the Tax Administration or the Financial Police Directorate of the Hellenic Police Headquarters. Criminal prosecution is initiated ex officio.

The State may appear before the criminal courts in cases involving tax offences to support the prosecution. When the prosecution concerns a misdemeanour, the State may also be represented by the head of the competent Tax Authority or an official designated by the head.

In trials concerning tax offences, the physical appearance of the tax officers as witnesses at the hearing is not mandatory if a written statement has been submitted to the competent public prosecutor or the court by the authority that conducted the tax audit regarding the case. However, the court may, ex officio or upon the defendant’s request, order a witness to appear to testify on matters essential to the outcome of the trial and that cannot be established solely from the case documents.

Greece has signed and ratified bilateral treaties for the avoidance of double taxation with:

• 58 countries in the areas of income and capital tax; and
• four countries in the area of inheritance tax.

Additionally, Greece formalised its commitment to combat base erosion and profit shifting by depositing its instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures with the Organisation for Economic Co-operation and Development (OECD) on 30 March 2021.

As per Article 28(1) of the Greek Constitution, international treaties, including those on double taxation, take precedence over domestic legislation, provided reciprocity is ensured. Consequently, in instances of conflict between domestic law and treaty law, the latter prevails. The interpretation of treaty provisions exclusively rests within the domain of Greek courts. Although not strictly bound by the OECD Commentary or the stance of Greek authorities, the Greek courts often draw heavily from these sources, which significantly influence their decisions.

Between Greece and the EU member states, Directive 2011/16/EU (incorporated into Law 4170/2013) on administrative cooperation in the field of direct taxation is applicable. This Directive has been amended by the following:

• Directive 2014/107/EU, effective from 1 January 2016, which introduced the automatic exchange of financial accounts information (incorporated with Law 4378/2016);
• Directive 2015/2376/EU, effective from 1 January 2017, which introduced the automatic exchange of information on advance cross-border rulings and advance pricing arrangements (incorporated with Law 4474/2017);
• Directive 2016/881/EU, effective from 5 June 2017, which introduced the automatic exchange of information on the country-by-country report (incorporated with Law 4484/2017);
• Directive 2016/2258/EU, effective from 1 January 2018, which introduced the access of tax authorities to mechanisms, procedures, documents and information in order to combat money laundering from illegal activities (incorporated with Law 4569/2018);
• Directives 2018/822/EU & 2020/876/EU, which introduced the mandatory automatic exchange of information on reportable cross-border arrangements (incorporated with Law 4714/2020), as well as its Addendum (ratified with Law 5272/2026)
• Directive 2021/514/EU, which established the scope and the conditions of the mandatory automatic exchange of information reported by platform operators (incorporated with Law 5047/2023); and
• the Multilateral Competent Authority Agreement on Automatic Exchange of Information pursuant to the Crypto-Asset Reporting Framework (ratified with Law 5273/2026)..

Between Greece and other (non-EU) countries, administrative cooperation in the field of taxation is based on the following agreements:

• the European Convention on Mutual Administrative Assistance in Tax Matters of 25 January 1988 (as amended in 2010 – ratified with Law 4153/2013), the scope of which covers specific categories of direct and indirect taxes (the Convention provides for three kinds of information exchange, namely: upon request, spontaneous and automatic exchange of information);
• the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information (ratified with Law 4428/2016), which provides for the exchange of information corresponding to that defined in the Directive 2014/107/EU; and
• the Multilateral Competent Authority Agreement on the Exchange of (Country-by-Country Reports (ratified with Law 4490/2017), which provides for the exchange of information corresponding to that defined in the Directive 2016/881/EU.

Between Greece and the US, administrative cooperation in the field of taxation is based on the following agreements:

• the Agreement to improve International Tax Compliance and to Implement Foreign Account Tax Compliance Act ((FATCA) – ratified with Law 4493/2017); and
• the Arrangement on the Exchange of Country-by-Country Reports (ratified with Law 4534/2018), which provides for the exchange of information corresponding to that defined in the Directive 2016/881/EU.

Greece participates in the international exchange of tax information under both domestic law and multilateral agreements. The country employs automatic, spontaneous and on-request exchange mechanisms, in line with OECD and EU standards.

Exchange on request is carried out upon a specific and reasoned request by a foreign competent authority concerning identifiable taxpayers and foreseeable relevance.

Spontaneous exchange takes place where the Greek tax authorities identify information that may be relevant to another jurisdiction, such as adjustments following a tax audit or the granting of cross-border rulings that fall within EU reporting obligations.

Automatic exchange of information is implemented extensively under EU law and international standards. Greece participates in automatic exchanges concerning financial account information under the Common Reporting Standard (CRS), country-by-country reporting (CbCR), advance cross-border rulings (where applicable), DAC6 mandatory disclosure arrangements and other categories prescribed under the DAC framework.

As a member of the Organisation for Economic Co-operation and Development (OECD), Greece takes part in the International Compliance Assurance Programme (ICAP). ICAP is a voluntary, multilateral risk assessment programme designed for large multinational enterprises (MNEs). It enables tax administrations to collaborate on the early assessment of transfer pricing and other international tax risks, with the objective of providing greater tax certainty and reducing the likelihood of future disputes.

In addition, Greece participates in joint audits and simultaneous tax audits under both EU and international frameworks. Within the EU, these forms of cooperation are conducted pursuant to the Directives on Administrative Cooperation (DAC), as transposed into Greek law.

Greece maintains a Mutual Agreement Procedure (MAP) framework in accordance with its obligations under double taxation treaties and the European Convention on the Elimination of Double Taxation in connection with adjustments to the profits of associated enterprises (90/436/EEC). The MAP mechanism is designed to resolve cross-border tax disputes and prevent double taxation arising from transfer pricing adjustments, income allocations or other treaty-related matters.

The legal basis for MAP is primarily found in Article 73 of Law 5104/2024 (Greek Code of Fiscal Procedure), which provides detailed rules for the conduct and finality of the procedure. Under these provisions, taxpayers who believe that actions by the Greek tax administration result in taxation not in accordance with an applicable treaty may request MAP assistance from the competent authority within the Greek Independent Authority for Public Revenue. The MAP is conducted by the Greek Tax Administration and its outcome is formalised through the issuance of a Mutual Agreement Decision.

A request for a Mutual Agreement Procedure (MAP) is considered admissible if it is submitted to the Competent Authority within the two- or three-year period provided under the applicable double taxation treaty (DTT), starting from the date of notification of the tax assessment or adjustment, the imposition of which is not in accordance with the provisions of the applicable DTT.

In cases where the applicable DTT does not specify a time limit, the request for MAP may be submitted at any time and will be considered admissible.

For the orderly conduct and effective administration of the procedure, however, it is recommended that the request be submitted as soon as possible and in any event within five years of the relevant action. Requests submitted beyond this five-year period are accepted by the Competent Authority, which will exhaust all available means to review the substance of the case; however, resolving the matter in such instances may be difficult or even impossible.

Greece provides for mandatory binding arbitration, but only as a treaty-based mechanism and not as a general feature of domestic tax dispute resolution.

Mandatory arbitration may be invoked after the completion of the Mutual Agreement Procedure (MAP) if the competent authorities of the jurisdictions involved are unable to resolve the dispute within the timelines set out in the relevant treaty. In such cases, an arbitration panel issues a final and binding decision, which must be implemented by the competent authorities.

Greece has established an Advance Pricing Agreement (APA) procedure to provide businesses with certainty regarding transfer pricing and to prevent disputes and potential double taxation arising from cross-border transactions between related parties.

For unilateral APAs, the process involves the taxpayer and the Greek Tax Administration. In contrast, bilateral or multilateral APAs involve consultation among the competent authorities of the relevant States; the taxpayer participates only indirectly and may accept or decline the APA.

While unilateral APAs may provide transfer pricing certainty within Greece, they do not prevent potential double taxation and are therefore generally less preferred. Nevertheless, in cases where no double taxation treaty exists with another jurisdiction, the Greek tax authorities may issue a unilateral APA upon request, provided it is appropriate and in the legitimate interest of the taxpayer. Importantly, a unilateral APA concluded by a taxpayer with another jurisdiction without the involvement of the Greek tax authorities is not binding on Greece.

Unlike many other OECD jurisdictions, Greece does not currently provide advance rulings on general tax matters. Tax certainty is therefore largely achieved through APAs and MAP procedures.

However, this may soon change, as a draft tax bill has recently been submitted to public consultation introducing “Tax Binding Rulings” into the Greek Code of Tax Procedure. Under the proposed framework, taxpayers would be able to request, prior to carrying out a specific transaction or business arrangement, a binding interpretation from the Independent Authority for Public Revenue on the application of Greek tax and customs legislation. The ruling would be binding on the tax administration, provided that the relevant facts and legal framework remain unchanged. The draft rules also envisage publication of rulings in anonymised form, potentially contributing to greater transparency and consistency in administrative practice.