Here are some answers to common questions raised by expatriates about Greek Law. If you find yourself navigating the challenges of expat life in this beautiful country, and your questions is not listed below, contact us to discuss your specific situation.
If the marriage was commenced in Greece, the divorce procedure depends on whether the divorce is consensual or not. If you both agree at all fronts, the marriage can be resolved in the presence of a notary - court procedures are not necessary-. For this process to be valid the following need to be met:
The marriage must have lasted at least six months before filing the joint application.
In case children have been born from the marriage and they are minors, a written agreement between the spouses regarding custody and communication with the children is required.
notarization of the genuine signature of the consenting spouses before the Justice of the Peace 10 days before the dissolution of the marriage.
For the issuance of the mutual agreement for the dissolution of the marriage, the presence of a lawyer is required by law for each of the spouses.
If spouses disagree on divorce or the mutual arrangement of property and child custody, they must resort to litigation.
Applicants are required to furnish the standard prerequisites outlined in the ministerial decision of Article 136, Paragraph 16 of Law No. 4251/2014, in addition to the following stipulations:
A) A sworn declaration affirming the intent to establish residence in Greece under the national entry visa for remote work and a commitment not to engage in any employment or service provision for Greek employers.
B) 1) A work or service contract or documented evidence of an employment relationship with an employer, whether natural or legal, situated outside Greek territory.
2) Alternatively, self-employed third-country nationals with more than one employer located outside Greece are required to present either indefinite or fixed-term employment or service contracts with remaining terms aligning with the national entry visa's duration .
3) In cases where a third-country national is self-employed in a business located outside Greek territory, information about the applicant's role in the enterprise, along with details about the business itself, including its name, location, area of operation, and corporate purpose.
C) Evidence demonstrating that the applicant possesses the mandated financial resources of at least €3,500 per month. These funds must be substantiated either by the employment or service contract or through a bank account. It's worth noting that this amount increases by 20% for each dependent spouse or cohabiting partner and by 15% for each dependent child.
D) The fee for the Digital Nomad visa is €75 (+ our fee). The cost is recurring every 12 months, once the applicant is interested to continue his residency as a digital nomad.
E) The application for the DN Visa is made at the greek consular posts of the country of origin or residence of the main applicant.
F) The Digital Nomad Visa allows tax-free residency up to 183 days (i.e. six months). After this period, the visa holder becomes a tax residence of Greece and is required to pay greek taxes.
NOTE: The Digital Nomad Visa is valid for 12 months. Upon completion of this period, obtaining a residence permit is necessary for non-EU nations to continue residing in the country. The fixed state fee for this application is €1000. The residence permit involves a completely different procedure. Ask us to guide you through it!
The Digital Nomad Visa allows you to engage in remote work for foreign clients or employers. This includes continuing your current job remotely or taking on freelance projects. You can also operate your own business, such as online consulting or e-commerce, provided your clientele is primarily based outside of Greece. The Digital Nomad visa specifically prohibits employment with Greek companies or entering the local labor market. It is designed for individuals generating income from abroad.
Q: Do I need to pay taxes in Greece on my foreign income? A: Generally, Greece taxes income earned within its borders. If your income is generated from working remotely for clients or employers outside Greece, it may not be subject to Greek income tax. However, it is crucial to consult with a tax professional to understand your specific tax obligations based on your circumstances.
Q: Will I be considered a tax resident in Greece? A: Your tax residency status in Greece depends on the duration of your stay. Spending a significant amount of time in Greece could make you a tax resident, affecting how your worldwide income is taxed. Tax residency typically involves staying in the country for more than 183 days in a calendar year.
Q: What about double taxation? A: Greece has double taxation treaties with many countries to avoid taxing the same income in both Greece and your home country. These treaties may influence how your income is taxed, and understanding the specific provisions that apply to your situation is important.
VISAS and RESIDENCE PERMITS serve distinct purposes when it comes to entering and staying in a foreign country. A VISA may or may not be required for entry, and European Union citizens are exempt from obtaining one to enter Greece. In contrast, a RESIDENCE PERMIT is essential for those intending to reside in a country for work or study purposes lasting 90 days or more.
The primary practical difference lies in the duration of stay. A VISA is valid for a short period, obtained before entry, and may have limited renewals. On the other hand, a RESIDENCE PERMIT allows an extended stay and is typically acquired after entering the country. It can often be renewed indefinitely, contingent on meeting specified requirements.
A VISA is a government-issued document granting entry permission, specifying the purpose, duration, and allowable entries. It is usually obtained before entry and is subject to expiration. In contrast, a RESIDENCE PERMIT is a government-issued document allowing a foreign citizen to stay for an extended period, obtained after entry.
In summary, while a VISA facilitates entry for a defined period, a RESIDENCE PERMIT enables a more extended stay in a foreign country. Each serves its purpose, with the former focusing on entry permissions and the latter on prolonged residency.
Under the directive issued by the Interior Minister with reference number 130181/6353/27.3.2018, residence permits for Real Estate Owners and the permanent residence permits for Investors are now among the types eligible to apply for Greek nationality. Applicants must, however, meet all the criteria outlined in the Greek Citizenship Code for obtaining citizenship through naturalization. This directive is applicable solely to the property owners and investors, excluding their family members. Family members must first acquire long-term residence status, which is essential for applying for citizenship.
Holders of a residence permit for real estate owners are entitled to travel within the EU under the Schengen Agreement. This includes those with long-term visas issued by any Schengen member state, which remain valid for a duration of one year. Such individuals are permitted to visit other member states for a period of up to three months within any six-month timeframe, enjoying the same rights as any residence permit holder. This also encompasses the benefit of multiple entry rights, facilitating free movement across the Schengen area. This provision ensures that real estate owners have both the flexibility and the opportunity to explore the European Union's diverse cultures and landscapes professionally and with ease.
Law 5078/2023 provides a new possibility for granting residence permits for work to nationals who have entered Greece illegally, provided they have demonstrably lived in the country for three years before submitting the application. The application requirements are:
A job offer declaration from an employer in Greece.
Residence in the country without a residence permit until 30/11/2023, while continuing to reside in Greece until today.
Having completed at least 3 years of continuous residence in Greece before submitting the application, according to documents with a verified timeline.
Being passport holders, even expired, unless an objective inability to renew exists & is documented.
A fee of 300 euros.
Employer's sworn statement.
The permit is also extended to their family members. Applications can be submitted until 31/12/2024. Once granted, the permit is valid for 3 year. At the end of this period, the third-country national can request a change of residence permit category.
Full employment is set at 40 hours per week, with the option of distribution over a five-day or six-day workweek. In businesses with up to 40 hours of weekly work, employees can work an additional five hours per week (overtime), compensated with a 20% increased hourly wage. Overtime employment is considered work beyond 45 hours per week, with relevant legal consequences. Overtime hours are additionally compensated by 40%, and illegal overtime requires compensation of 120%. Every business is obligated to have an electronic time measurement system, and employees must use the Digital Work Card to verify compliance with working hours. Parallel employment is allowed outside the agreed-upon working hours, with exceptions for objective reasons.
The duration of recreational leave is determined through an agreement between the employer and the employee, with the employer obliged to grant the requested leave within two months of the employee's submitted application. The leave days are determined based on years of service, ranging from 20 to 26 working days for a five-day workweek and from 24 to 31 working days for a six-day workweek. The employee is entitled to a leave allowance, equal to the earnings of the leave days, with a maximum limit of half the salary for monthly earners or 13 daily wages for daily earners. In case the employer does not grant the requested leave, they must pay the leave compensation with a 100% surcharge.
The employment contract of indefinite duration can be terminated at any time by either the employer (dismissal) or the employee (resignation/voluntary departure). The unjustified (arbitrary) absence of the employee from work for a period exceeding five (5) consecutive working days may be considered as termination of the contract on their part, provided that an additional period of five (5) consecutive working days has elapsed since their mandatory notification by the employer. If the employer fails to timely fulfill the obligations of voluntary resignation notification, the employment contract is considered terminated by dismissal without warning from the employer. Termination of the employment contract of indefinite duration by the employer can be done with or without notice. The duration of the notice period escalates based on the years of service of the employee. The compensation is also proportional to the years of employment with the specific employer. The due termination compensation in case of prior notice by the employer is reduced to half of what would be owed without prior notice. For the valid exercise of the right to terminate the contract of indefinite duration, the payment of legal compensation is required. Greek legislation categorizes cases of invalidity of termination of indefinite employment contracts and provides instances where termination of the contract is void for specific reasons (e.g., adverse discrimination against the employee, etc.).
When it comes to property purchase, legal services are be needed as early, as at these stages:
(A) technical check
(B) Legal check
(C) Purchase Agreement & documentation signing
Legal scrutiny of the property by a specialized lawyer is essential and mandatory. The lawyer examines the legality of ownership titles for the last 20 years, ensuring correct transfers, absence of encumbrances or disputes, payment of considerations, and checks for mortgages or other burdens. The existing construction contract, terms of horizontal property formation, condominium regulations, and approved uses are also verified. The lawyer provides a legal report to the potential buyer for a comprehensive understanding of the property's legal status before purchase. It's recommended to repeat the check before the final contract signing for additional security. The interested buyer bears the cost of the legal scrutiny.
A technical inspection of the property by an engineer is also required. The documents issued by the engineer that must accompany the property in case of buying and selling are as follows: (a) topographic diagram, where required, (b) Building permit or Construction License. (c) Electronic Building Identity: As of 01/04/2022, the issuance of EBI is mandatory for completing property transfers.
(d) Completion document of the regularization process of the property in case of unauthorized constructions.
(e)Energy Performance Certificate (EPC). The seller bears the expenses for the engineer and the issuance of the above documents.
Note that for the drafting of the property purchase agreement, it is necessary for the foreign buyer to obtain a Tax Identification Number (TIN).
At the collection of documents and final signing of the purchase agreement stage, the buyer communicates with a notary usually of their choice.
The notary typically requests the following documents from the seller-owner:
Tax and insurance clearance.
Certificate of Removal of Mortgage (if applicable).
Property Energy Performance Certificate.
Engineer's Certificate according to Law 4495/2017 regarding any irregularities in the property.
Resolutions under any law, accompanied by the necessary inspections.
ENFIA certificates for the last 5 years before the contract signing.
Certification of property declaration submission to the Land Registry under Law 2308/1995 or, in the case of a Land Registry Office, an extract from the cadastral diagram.
Submission of property transfer tax declaration (F.M.A.) and payment, completed by the notary and paid by the buyer to the tax office where the property is located. The tax is 3% of the taxable value of the property at the time of transfer. F.M.A. is mandatory for all cases except for the primary residence, under specific conditions.
Complete and up-to-date identification details of the seller and buyer, including address, TIN, and tax office.
Yes, you are entitled to a 50% tax reduction if the following apply to you:
You have not been a tax resident in Greece for five out of the six years preceding the shift of tax residence to Greece.
You are transferring your tax residence from an EU member state or EEA country or from a country with which an administrative cooperation agreement in the field of taxation with Greece is in force.
You are declaring that you will be staying in Greece for at least 2 years
You are employed from a Greek company or a branch of a foreign company in Greece.
These articles provide various tax incentives aimed at attracting new tax residents to Greece, including alternative taxation on foreign-sourced income for high-net-worth individuals, a 7% tax on foreign pension income, and a 50% income tax exemption for individuals engaging in employment or business activities within Greece.
The rent is paid in the manner and timeframe specified in the signed rental agreement. If there is no specification in the contract, the rent is paid at the end of the lease period. If payment in smaller intervals (e.g., monthly) was agreed upon, it is settled at the end of those intervals. If not otherwise specified, monetary rent is paid at the landlord’s place of residence!
When it comes to the security deposit, there's no specific law stating how much the tenant must pay the landlord—it's all about what the parties agree on. The deposit might not be required, or it could be set at an amount matching the agreed-upon number of months. Typically, there's a clause ensuring the deposit adjusts along with any changes in rent, ensuring the landlord ultimately holds one (or two) months' rent in hand.
Regarding damages or repairs that the tenant is responsible for, the tenant covers the costs of repairs necessary for regular use during their stay in the leased property. On the contrary, the landlord is responsible for essential and beneficial expenses in the property, meaning those objectively necessary for maintaining and preserving the space suitable for regular use, as well as those that increase the property's value.
In case of an early departure from the lease before the contract's expiration without legal or contractual rights, the lease remains in effect, and the tenant is obliged to pay the rent for the entire remaining term of the lease, even if they do not use the leased property for reasons related to themselves or owe no rent during the abandonment. However, if the landlord uses the leased property themselves or leases it to another person after the initial tenant's departure, the debtor under the original lease agreement has the right to deduct from the due rent any benefit gained by the landlord.
The landlord is not obligated to return the deposit given at the beginning in the form of a guarantee to the tenant in case the house has damages or if, for any reason, any term of the contract has not been fulfilled. However, if the tenant has complied with all the terms of the agreement, then the landlord returns the deposit.
a. Property Transfer Tax: The tax amounts to 3% of the property value. The rates vary based on the property value, such as 0.80% for a value up to €120,000, and it increases gradually for higher values.
b. Notary Fees: The notary's fee is determined based on the objective value of the property or the agreed price in the contract. It ranges from 0.1% to 0.8% of the objective value, with additional charges for extra pages and copies. All fees are subject to a 24% VAT.
c. Lawyer's Fee for contract representation: This fee is in addition to the lawyer's fee for the legal examination of the property and is determined based on the objective value of the property. A 24% VAT is imposed on this fee.
d. Contract Transfer Expenses: The proportional transfer fee is calculated at 4.75% for mortgage offices and 5% + 1% for new land registry offices. A 24% VAT is added to these expenses.
e. Real Estate Agent Commission: The commission is 2% of the commercial value of the property, subject to a 24% VAT.
1. Legal Notice:
Send a formal demand for unpaid rent.
2. Court Filing:
File an eviction lawsuit if rent is still unpaid.
3. Court Hearing:
Attend the scheduled hearing; the tenant may present their case.
4. Court Decision:
Await the court’s ruling, which typically happens within 1-2 months.
5. Execution Order:
If the court rules in favor, request an execution order for eviction.
6. Eviction Process:
A bailiff executes the eviction; tenant is given time to vacate.
