Investment in Greece Updates

UPDATES
2012 KPMG Certified Auditors AE, a Greek Societe Anonyme and a member firm of the KPMG network of independent member firms affiliated with KPMG
International Cooperative (KPMG International), a Swiss entity. All rights reserved.
Preface | 3
Preface to Addendum
to 8th Edition
Numerous amendments have been introduced since the publication of the

8th edition of Investment in Greece at the end of March 2011 and even
more fundamental changes are expected by the end of 2012.
The 9th edition is anticipated to be issued in the first part of 2013 in order
to incorporate the next wave of changes as well. In the meantime and
due to the number and nature of the various measures introduced over
the last year or so (the most important of which we have highlighted in
our Tax Newsletters and Newsflashes), this Addendum summarizing the
most important interim changes has been issued.
The intention for this Addendum, as for the Guide, is for all relevant
investment areas to be covered in a succinct and informative manner.
However, the information provided can only be general in nature and
cannot provide the comprehensive and detailed guidance necessary to
formulate specific investment decisions. As stated, relevant legislation
and detailed regulations are subject to change.
KPMG would be pleased to assist you to evaluate and implement your
investment plans. For details on services available and how to contact
KPMG in Greece, please see Appendix 5 of the Guide.
Every effort has been made to ensure that the information provided in this
Addendum is current as of 30 September 2012.
Addendum to
8th Edition
KPMG Certified Auditors AE
30 September 2012
4 | Investment in Greece
Chapter 2
Opportunities
for international investors
On page 28, under Strategic Investments under Law 3894/2010 the
first two bullets and the fourth bullet read are replaced by the following:
the investment exceeds EUR 100 000 000,
the investment exceeds EUR 40 000 000 and at least 120 new
employment positions are created,
150 new long term employment positions to be created
On page 33, under Mergers the second and third sentences of the first
paragraph are replaced by the following:
The application of this law was extended indefinitely in 2012.
Also on page 34, at the end of the second last paragraph, the words
and the disadvantage that the absorbing company waives its right to
utilize existing tax losses.
are deleted.
Chapter 4 | Business entities | 5
Chapter 4
Business entities
On page 47, all paragraphs under Formation of an AE are replaced

by the following:
All actions required for the establishment are carried out by a Notary
Public who is considered as a One Stop Authority, including for the
purposes of making most payments and submitting all documents and
applications to the authorities involved in the establishment. The One
Stop Authority interfaces with the other authorities as applicable and
short deadlines apply for the completion of the procedures.
In general, the following are required:
Preparation and signature by the founders before a Notary Public of
Articles of Incorporation which must include provisions relating to the:
- Corporate name: this must necessarily include the words "Anonymos
Eteria".
- Duration of the corporation: the length is not prescribed but it usually
varies from 20 to 50 years which may later be extended.
- Corporate purpose (objects of activity).
- Share capital and the number and nature (registered or bearer) of the
shares to be issued.
- Composition, operation and authorities of the Board of Directors and
of the General Meeting of the shareholders.
Payment of certain amounts to the One Stop Authority to be further
paid to public authorities (capital concentration tax equal to 1% of the
capital, etc).
Registration of the corporation with the General Commercial Registry.
Receiving establishment approval from the Ministry of Regional
Development and Competitiveness (only for specific corporations such
as Banks, insurance companies etc.).
Publication of the establishment in the Government Gazette.
The corporations establishment for corporate law purposes is

considered to have been completed upon the registration of the
Corporation with the General Commercial Registry.
The Articles of Incorporation of an AE can be executed by one or more
founding shareholder(s), either individuals or legal entities. If
incorporated by more than one shareholders, all its shares may be
subsequently held by one shareholder.
On page 54, under Compulsory publication the third paragraph is
replaced by the following:
The balance sheet and the profit and loss account together with the
auditors' report (required only when the audited company is
obligatorily audited by a certified auditor), must be published in the
Government Gazette and in one daily financial newspaper at least 20
days prior to the day on which the general meeting of the
shareholders is to be held. Alternatively, the financial statements can
be posted on the Companys website (if the Company has notified the
supervising authorities of the details of its website).
On page 55 under Government supervision the second and third
paragraphs are replaced by the following:
All other AEs are not subject to government supervision at the time of
establishment. Following establishment, government supervision over
such AEs is exercised by the General Commercial Registry together
with the local Regions (Peripheries).
Some aspects of the government supervision exercised over
corporations include the following:
Actual payment of share capital is certified by the General Commercial
Registrys or Region's officials (as applicable).
Increases and decreases of share capital, as well as any amendment
to the Articles of Incorporation, must be registered with the relevant
supervising authority. For companies whose capital is higher than EUR
3 million or for certain categories (banking institutions, insurance
companies etc.) amendments to the Articles of Incorporation need
approval of the General Commercial Registry or Region.
The Ministry or Region may apply to the courts to arrange for a special
audit of the corporation under the conditions prescribed by law.
On page 56, under Formation of an EPE the first paragraph is replaced
by the following:
Chapter 4 | Business entities | 7
Similarly to AE companies, all actions required for the establishment of

EPE companies are carried out by the Notary Public who is considered
as the One Stop Authority, including for the purposes of making most
payments and submitting all documents and applications to the
authorities involved in the establishment. An EPE is formed by
executing the Articles of Incorporation before a Notary Public,
payment of the capital concentration tax of 1% and then filing of the
Articles with the General Commercial Registry, with the establishment
also being published in the Government Gazette.
On page 58, all paragraphs under Compulsory publication
are replaced by the following:
The documents concerning amendments of the Articles of
Incorporation and the administrators must be filed with the General
Commercial Registry and published in the Government Gazette.
Copies of the financial statements, the administrators' report and the
auditors' report (where applicable) must also be filed with the relevant
supervising authority. The financial statements of an EPE (with the
exception of the Notes to the financial statements) and the auditors'
report (where applicable) must be posted on the EPEs website and if
there is no such website they must be published in the Government
Gazette and in one financial newspaper.
On page 59, under Branch the first, third and sixth paragraphs are
A branch of a foreign company may be established in Greece through
registration with the General Commercial Registry. For this purpose,
certain documents must be filed with the General Commercial
Registry, including the Articles of Incorporation of the foreign
company, a certificate of good standing issued by the foreign
companys competent supervising authority, a resolution of the foreign
companys competent corporate body approving the establishment of
a branch in Greece, a Power of Attorney appointing the branch's legal
representative and the person authorized to receive correspondence.
The branch is administered by an individual (representative) appointed
by the foreign company by virtue of a Power of Attorney. The legal
representative's personal data and documents detailing responsibilities
must be filed with the General Commercial Registry. If the individual
appointed as the legal representative of the branch is not an EU
citizen, he must secure a Greek residence permit. The establishment
of the branch and certain details concerning its object of activities,
registered address at legal representative must be published in the

Government Gazette.
A branch must file a copy of the financial statements of its head office
annually with the General Commercial Registry. Depending on size
criteria and/or industry (for example banking and finance institutions,
insurance), branches are subject to audit by certified auditors and
certain publication requirements.
On page 61, under General Partnership - Omorythmos Eteria (OE)
the second paragraph is replaced by the following:
The Articles of Association of a partnership need not be signed before
a Notary Public and may take the form of a private agreement.
General Partnerships are established through One Stop Authorities
(General Commercial Registry of the Chamber of Commerce etc.) and
their Articles of Incorporation are filed with this Registry. Under
particular circumstances a summary of OE articles may need to be
published in the Government Gazette.
At the end of page 62, a new section called Private Capital Company
Idiotiki Kefalaiouhiki Eteria (IKE) is inserted as follows:
A Private Capital Company (Idiotiki Kefalaiouhiki Eteria) is exclusively
liable for its corporate debts, whereas the liability of its partners for
corporate debts towards third parties is limited to the amounts
specifically mentioned in its Articles of Association.
The Articles of Incorporation of a private capital company must take
the form of a notary deed only in certain cases; otherwise a private
agreement is sufficient. Private Capital Companies are established
through the General Commercial Registry of the Chamber of
Commerce and their Articles of Incorporation are filed with this
Registry.
The minimum capital is EUR 1 and can be contributed in cash or in
kind, in the form of personal services to the firm, or in the form of
guarantees/liability undertaken by the partners towards third parties.
The affairs of the company are administered by one or more
administrators and the accounting period is the same as that
previously described for AEs.
Chapter 5 | Business taxation | 9
Chapter 5
Business taxation
On page 70, under Deductibility of payments to residents of noncooperating countries or of countries with preferential tax treatment
the first sentence of the last paragraph is replaced by the following (the
underlined words are added):
For income tax purposes, an individual or an entity is considered to
enjoy a preferential tax treatment in a country outside Greece, if they
are not subject to any tax in that country or although subject to tax, are
not actually taxed, or are subject to tax at a rate which is equal to or less
than 60% of the rate which would be applicable to their income in case
they were resident in or had their registered address or a permanent
establishment in Greece.
On page 71, the second paragraph under the heading Filing of the tax
return is deleted and after this heading, a new section called Annual Tax
Audit Certificate issued by Certified Auditors is inserted as follows:
AE and EPE companies which are obliged to be audited by certified
auditors must have an Annual Tax Audit Certificate issued by their
certified auditor who verifies the companys tax position after carrying out
special audit procedures. The Certificate is submitted by the Auditor to the
company within 10 days of the income tax return filing deadline and to the
General Secretariat Information Systems (GSIS) of the Ministry of Finance
within 10 days of the approval of the Companys accounts by its General
Assembly of Shareholders. If the certificate does not include any
qualifications then the tax authorities will not carry out a tax audit unless
the company falls within the sample of at least 9% of the companies
which were audited by Certified Auditors (cases will be selected to be
audited by the tax authorities based on criteria set by the Ministry of
Finance in accordance with the provisions of Article 80 of Law
3842/2010). Such criteria will include the companys legal form, the
category of books, the gross revenues, the place of operations etc.
Apart from the companies selected for audit based on the sample
above, the Ministry of Finance may conduct regular audits on an
additional number of companies in certain cases (such as in case of

issuance of fictitious tax records, transfer pricing infringements,
criminal proceedings for money laundering actions against members
of the Board of Directors etc.).
Strict penalties may be applied on both the companies and the
auditors for violations and/or non-compliance.
On page 77, under Investment income a third paragraph is inserted as
follows:
The sale of government or corporate bonds at a price higher than
their acquisition cost is considered investment income.
On page 78, under Interest a new paragraph is inserted as follows:
Special tax provisions were introduced in relation to the new bonds
received by investors participating in the Private Sector Involvement
(PSI) in the course of restructuring Greeces debt, summarized as
follows:
The new bonds are considered to be a continuation of the bonds
surrendered. Therefore, the exemption from income tax on interest is
applicable in case the bond holder is a foreign resident.
Interest on bonds issued by the European Financial Stability Facility
(EFSF) have the same tax treatment as the interest on bonds of Greek
State, i.e. they are exempt from income tax for foreign residents.
Financial instruments issued by the Greek State within the context of
PSI (whose return is linked to the Gross National Product) are
considered as derivatives.
The loss arising from the exchange of Greek State bonds or corporate
bonds in the context of PSI is tax deductible in equal annual
installments over the life of the bonds received in exchange.
Any withholding tax on interest on Greek State Bonds, Treasury Bills
and corporate bonds that has not been recovered and appears in the
books of banks in 2010 onwards.
On page 79, under Tax on stock exchange transactions the last
paragraph is replaced by the following:
The sale of listed shares acquired from 1 January 2013 will not be
taxed as above and any profits (gains) arising from the sale of listed
shares will be taxed according to the general provisions of tax law, and
any losses will be tax deductible.
Chapter 6 | Taxation of individuals | 11
Chapter 6
Taxation of individuals
On page 85 under Overview the last three paragraphs are replaced by

the following:
An individual is considered to be resident (domiciled) in Greece if he
resides in Greece for more than 183 days in total within the calendar
year. Residence (permanent) is assumed to exist unless the taxpayer
can prove the opposite.
Non-Greek tax residents, need to file with the Non-Greek Resident Tax
Office the following documentation:
Where the individual is tax resident (i.e., taxed on his/her worldwide
income) in a country with which Greece has concluded a Double
Taxation Treaty (DTT), the individual should file a tax residence
certificate in a form which is determined by the applicable DTT and
issued by the competent authorities of the treaty country (an
exception exists for the United States and Turkey which issue tax
residence certificates of a different type);
Where the individual is tax resident (i.e., taxed on his/her worldwide
income) in a country with which Greece has not concluded a DTT (a
non-treaty country), the individual should file the following
documentation with the Greek tax authorities:
a) an income tax return filed with the tax authorities of the individuals
non-treaty home country (provided that such a filing obligation exists
in that home country), or
b) a certificate issued by the competent authorities of the non-treaty
home country (i.e., tax authorities or municipal authorities, etc.),
which should certify the worldwide income of the individual, as
well as the permanent residence status of both the individual and
his or her family members (i.e., spouse and children), in order to
prove that the individual has strong bonds with the non-treaty home
country.
If the individual wishes to transfer his residence to another country, he
is obliged to provide evidence/documentation to be determined by the
Ministry of Finance (in practice such requested

evidence/documentation amongst others is in the form of a tax
residence certificate issued by the authorities of respective country).
An individual who has been Greek tax resident cannot be considered
to have changed his tax residence and become a tax resident of a
country included in the list of non cooperating countries issued by the
Ministry of Finance. Furthermore, an individual who has been Greek
tax resident for five consecutive years and wishes to transfer his
residence or usual residence to a country with a preferential tax
regime and has in Greece substantial financial interests is considered
to be subject to tax in Greece for his global income for a period of five
years after the change in residence. This period commences from the
filing of the declaration for the change of the residence.
On page 86, the second sentence of the last paragraph of the section
under Basic Principles is replaced as follows:
For other foreign tax resident individuals, the progressive income tax
rates commence at 10% and not 0%, while they are not entitled to
deductions from taxable income or tax credits available to Greek tax
residents.
In the same paragraph, the last sentence as follows is deleted:
A 1.5% discount or EUR 118 (whichever is lower) is granted if the
annual income tax return is filed electronically (through the internet).
On page 87 under Determination of the income tax liability all
paragraphs under the subheading Deductible expenses are replaced
by the following:
The following expenses of a personal nature are deductible on
condition that appropriate receipts exist:
employees share of obligatory social security contributions paid to
social security funds established by law;
10% of the amount of sponsorship to cultural non for profit entities as
determined by Law 3525/2007;
20% or 40% (depending on specific conditions) of the amount of
investment for film productions.
On page 87 all paragraphs under the subheading Tax credits
The tax payable is decreased by 10% of:
Total annual amount of medical and hospital care expenses; up to EUR

3 000.
Annual rent for the primary residence of the taxpayer and his family;
up to EUR 100.
Annual rent for the accommodation of children attending courses in
approved schools; up to EUR 100.
Annual expense for the taxpayer and dependent children for private
lessons at home or for tuition of any recognized educational level or
foreign language; up to EUR 100.
Interest on loans granted for the acquisition of a primary residence of
up to 120 sq.m. The amount of interest recognized for this purpose is
limited to interest payments corresponding to a loan principal of up to
EUR 200 000.
Interest on loans granted for the restoration, repair and maintenance
of buildings which are considered as preservable or are located in
traditional areas, for loans up to EUR 200 000;
Life, health and personal accident insurance premiums up to EUR 120
for single taxpayers and EUR 240 for families.
Alimony paid to ex spouses; up to EUR 1 500.
The value of medical equipment and ambulances donated to state or
municipal hospitals;
Cash donations to the State, municipalities and certain other local
institutions (religious, philanthropic, educational, medical) which
exceed the amount of EUR 100. The amount of expense recognized
for this purpose cannot exceed 10% of total taxable income;
Cash donations to charitable institutions and non for profit entities
which exceed the amount of EUR 100. The total amount of expense
recognized for this purpose cannot exceed 10% of total taxable
income;
Amount of obligatory social security contributions paid by non salaried
individuals to funds established by law;
Total amount of expenses for the energy upgrading of a building which
are made within the framework of the business program
Environment Sustainable development according to the provisions
of Law 3614/2007 and Law 3661/2007 for the energy inspection of
buildings; up to EUR 300.
an amount equal to 20% of the cash donation for the settlement of

the state deficit;
an amount equal to twice the amount of rental payment made to
certain businesses.
Cash donations and sponsorships exceeding EUR 300 must generally
be deposited with a bank or the Fund of Deposits and Loans (not
applicable for donations to the State).
The tax payable is also decreased by EUR 60 for each child for a
taxpayer who earns employment income on condition that he offers
his services in or resides for at least nine (9) months within the taxable
year in certain border areas of Greece.
On page 88 under the subheading Income tax scale/Tax rates the first
paragraph and table are replaced by the following:
The income tax scale and corresponding tax rates for individuals (selfemployed/free-lancers as well as employees and pensioners) are as
follows for 2012 (amounts in Euro):
Income bracket Tax rate
Tax per
bracket
Aggregate
income
Aggregate
tax
First
5 000
Exempt
5 000
Next
7 000
10%
700
12 000
700
Next
4 000
18%
720
16 000
1 420
Next 10 000
25%
2 500
26 000
3 920
Next 14 000
35%
4 900
40 000
8 820
Next 20 000
38%
7 600
60 000
16 420
Next 40 000
40%
16 000
100 000
32 420
Exceeding 100 000
45%
On page 89 the third and subsequent paragraphs are replaced by the

following:
The amount of receipts required is calculated at 25% of the taxpayers
declared income which is taxable according to the general provisions
for income up to EUR 60 000 (i.e. maximum amount of receipts
required EUR 15 000 per taxpayer). In case the value of submitted
expenses (receipts) does not reach the required amount, a tax penalty
at the rate of 10% is imposed on the difference.
The tax-free amount of the first income bracket is increased by EUR 2
000 for each of the first two children of the taxpayer, by EUR 3 000 for
each child above two. The Tax-free amount of the first income bracket
is increased by EUR 2 000 which is considered as expenses without
supporting documentation if the taxpayer and/or his dependants are
disabled, blind, or war victims.
A supplementary tax is computed at the rate of 1.5% or 3% on gross
rental income from real estate that is taxable. The 3% rate applies
where the real estate is used for residential purposes and exceeds
300 square meters or in case of commercial lease agreements.
Foreign residents are taxed on the basis of the above income tax
scales but they must pay tax at the rate of 10% on the first EUR 5 000
of their income (except for EU residents earning over 90% of their
income in Greece).
On page 90 under the heading Return filing and payment procedures
a new paragraph is inserted after the first paragraph as follows:
For 2012 filing season (for income earned during 2011) electronic filing
was obligatory for taxpayers whose total income exceeded EUR
12 000.
The third and fourth paragraphs of page 90 are replaced by the following:
A 1.5% discount is granted if the tax assessed is paid in a lump sum
within the deadline for the payment of the first installment. An
additional discount if the return is filed through the Internet is no
longer given.
The tax assessment will include an amount equal to 55% of the
relevant year's tax payable as an advance against the following year's
tax. An exemption from the advance tax applies only if:
(a) the amount of advance tax does not exceed EUR 30;
(b) the income declared includes only employment income and income
arising for the owner occupying his own residential real estate.
Also on page 90, all the paragraphs under Illustrative tax computation
The Illustrative tax computation for income earned in 2012
Assumptions:
Salaried residents living in Athens insured for social security purposes

after 1992 for the first time, married with two children whose spouse
has no taxable income with living expenses enabling them to fully
utilize the tax free bracket. Annual salary of EUR 41 000. For the
purposes of this computation no tax has been withheld at source.
Euro
Gross annual salary
41 000.00
Less Social security contributions (16.50%)
(6 765.00)
Taxable income
34 235.00
Calculation of income tax payable:

Tax free bracket corresponding to two children
of EUR 9 000 (i.e EUR 5 000 plus EUR 4 000)
Euro
Exempt
10% tax on EUR 3 000
300.00
18% tax on EUR 4 000
720.00
25% tax on EUR 10 000
2 500.00
35% tax on remaining EUR 8 235.00
2 882.25
Income tax thereon
6 402.25
Income tax payable
6 402.25
On page 91 under Income tax withholding on salaries in the second

sentence of the first paragraph the rate of tax withholding of 30% is
replaced by 45%.
On page 92, the second full paragraph is replaced by the following:
As of 1 January 2012, remuneration paid to administrators of an EPE
and fees paid to Board members of an AE out of corporate profits are
subject to a withholding tax at the rate of 25%. The 25% withholding
extinguishes the income tax liability of the recipient of the
remuneration/fees.
Before the section Professional income two new sections called

Solidarity contribution and Annual entrepreneurship duty are
inserted as follows:
Solidarity contribution
A solidarity contribution was introduced in 2011 and it is imposed on
individuals with annual income exceeding EUR 12 000. The applicable
rates range from 1% to 4% (the highest rate is imposed on income
exceeding EUR 100 001). The contribution is imposed on the total
income reported not taking into consideration any tax credits or
deductions stipulated under Greek tax law. A solidarity contribution at
the rate of 5% applies to high ranking state officers (i.e. the President
of the Parliament, Ministers, General and Special Ministerial
Secretaries). A special contribution is imposed on private cars whose
ccs exceed 1,929, on pleasure boats, swimming pools etc.
The solidarity contribution is imposed on income earned in financial
years 2010, 2011, 2012, 2013 and 2014 (fiscal years 2011, 2012, 2013,
2014 and 2015 respectively).
Furthermore, employers are also obliged to withhold and remit to the
Greek tax authorities the special solidarity contribution via payroll as of
January 2012 onwards. Employers normally calculate the special
solidarity contribution corresponding to the total annual remuneration
of each employee and then withhold and remit to tax authorities the
amount corresponding to the monthly remuneration of the employee.
Annual entrepreneurship duty
An Annual entrepreneurship duty of EUR 400 is imposed on enterprises
and freelancers having their registered seat in a town or village with a
population of up to 200 000 residents. The above annual duty is EUR
500 for freelancers and enterprises having their registered seat in areas
with a population exceeding 200 000 residents. Moreover, an annual
entrepreneurship duty of EUR 300 is also imposed on branch operations
of such enterprises/freelancers. Exemption from the above duty is
provided for freelancers and enterprises having their registered seat in
areas with a population of up to 500 residents and on islands with a
population of under 3 100 residents. Moreover, an exemption from the
above obligation is provided for sole traders and freelancers for the first
five years of their business activity as well as for professionals for three
years prior to their retirement.
On page 93 all the paragraphs under Dividends are replaced by the
following:
As of 1 January 2012 a withholding tax of 25% is imposed on

dividends of Greek corporations. The 25% withholding extinguishes
any further income tax liability. The same treatment applies to
dividends received from foreign entities. The 25% withholding tax is
imposed on the net amount of the dividend (i.e. gross amount of
foreign dividend minus foreign tax paid).
On page 94 the first paragraph under Capital gains tax is replaced by
the following:
Capital gains tax, as discussed in Chapter 5, also applies to individuals
except that capital gains on the transfer (sale) of private assets
(excluding shares or participations in partnerships or EPEs) are not
taxable. Capital gains tax imposed on individuals is a final tax with the
exemption of capital gains from the transfer of corporate and Greek
state bonds effected as of 29 February 2012, which are subject to a
withholding tax at a rate of 20%. Notwithstanding the rates set out in
Chapter 5, it should be noted that the transfer of individual enterprises
or participations in partnerships between relatives is subject to the
following lower capital gains tax rates:
On page 96 under Foreign employees the last sentence of the first
paragraph is deleted. It reads as follows:
For expatriate employees, it has been possible for items such as
company provided housing and school fees to be non-taxable
reimbursement given that they offset costs of the expatriates due to
relocation.
Chapter 7 | Labor | 19
Chapter 7
Labor
On page 97, under Wage regulations/Labor Agreements the first

Minimum rates of pay are set each year (or every two years) by the
National General Collective Labor Agreement. However, in accordance
with announcements of the Greek government in 2012, the method of
determination of the minimum rates of pay is anticipated to be
amended as of April 2013. Certain industries and trades have
established their own Collective Labor Agreements (CLAs) which
provide their own minimum wage and salary rates on the basis of the
number of years of service (Sectorial or Professional CLAs). However,
since February 2012, when major amendments to Greek employment
legislation were introduced, the majority of Sectorial/Professional
CLAs have expired and no new Sectorial/Professional CLAs have been
concluded. Further, Business CLAs, which apply to the employees of a
certain business, can also be concluded to provide for the wages to
apply in the specific business. In accordance with the legal framework
currently in force, neither the Sectorial or Professional CLAs nor the
Business CLAs can set rates of pay lower than those prescribed by
the National General Collective Labor Agreement, but Business CLAs
can set rates of pay lower than those prescribed by the Sectorial or
Professional CLAs which would apply to the certain business.
On page 98, under Working hours, vacations, and public holidays
the first sentence of the first paragraph is replaced by the following:
The working week is generally 40 hours over five days although
discussions are made for the extension of the working week to six
days.
On page 99, under Overtime the third paragraph is replaced by the
following:
During periods of increased demand and following a certain procedure
provided for by law, employees working up to 40 hours may be
requested to work two additional hours daily with a corresponding
reduction of working hours in other weeks (the period of increased

and reduced employment cannot exceed six months in total during
twelve months). Alternatively, it can be agreed between the
employees and the employer that the daily working hours during
certain periods not exceeding thirty two weeks per year can be
increased by up to 256 working hours per calendar year provided that
a corresponding reduction in other weeks is also agreed.
On page 100, under Termination/Dismissals the last paragraph is
Dismissal of a female employee during the period of her pregnancy as
well as for a period of eighteen months after the birth of her child or
during her absence for a longer period due to sickness because of the
pregnancy or the delivery of the baby is legally invalid, unless the
dismissal is for a serious cause and the procedure provided for by the
applicable legislation is followed. The above period of protection can
be extended to twenty one months under certain conditions. The
deterioration of the employees performance due to the pregnancy
itself does not qualify as a serious cause. Termination of employment
by the employer during sickness is not prohibited by law. During
periods of sickness and for up to one month depending on the
employees term of service, the employer is obliged to pay all or part
of the salary to the employee, whereas a sickness benefit is also paid
to the employee by the Greek social security authorities provided that
the absence from work due to sickness has lasted more than three
days (other conditions must also be met).
On page 101, under Social security system the last paragraph is
From time to time, incentives are provided to employers in the form of
reduced contributions or subsidies for the purposes of maintaining or
creating employment positions. Provisions have been introduced
obliging employers to make social security contributions on behalf of
dismissed employees under certain conditions.
On page 101, under Foreign employees the first paragraph is replaced
by the following:
Foreign employees may, in certain circumstances, be exempt from
registering with the Greek social security system. For instance, foreign
nationals who are insured in EU countries or in non-EU countries
having bilateral Social Security Agreements with Greece may be
Chapter 7 | Labor | 21
temporarily exempt from being insured with a Greek social security

fund on the normal condition that they have been seconded to work in
Greece by their employers and they continue to be insured in the
country of their origin. For persons insured in other EU countries,
exemptions can also be provided in other cases based on the
provisions of EU legislation.
On page 102, under Social Security contributions the table is
The contributions are calculated on the gross salaries or salary ceilings
at the following rates:
Fund
IKA
ETAM
Total
Employer (%)
Employee (%)
Total (%)
25.56
13.50
39.06
3.00
3.00
6.00
28.56
16.50
45.06
Further, under this heading, a new paragraph is inserted as follows:

Employers social security contributions are anticipated to be reduced
shortly.
On page 103, under Pensions the fourth paragraph is replaced by the
following:
Following amendments to social security legislation, both the age and
the insured working days required for the proportional pension are
increased on an annual basis until 1 January 2015 when the general
requirements are the 60th year of age and 12 000 insured working
days. Based on a recent announcement of the Greek government,
the age limit is expected to rise to the 67th year of age.
Also on page 103, all paragraphs under Sickness are replaced
by the following:
Persons insured with IKA for at least 90 working days (to increase
to 100 working days as of 1 January 2013) during the previous calendar
year or during the previous fifteen months (not taking into account the
last three months of the fifteen-month period in question) are entitled to
medical treatment by IKA doctors free of charge and to dental treatment
at reduced cost. Medicine prescribed by doctors may generally
be obtained at reduced prices and, in some cases, free of charge.
In addition, an insured employee is entitled to collect a sickness

benefit provided that during the previous calendar year or during the
previous fifteen months (not taking into account the last three months
of the fifteen-month period in question) he has accumulated at least
120 working days. The sickness benefit is equal to half of the deemed
wages of the insurance category within which the insured person falls.
In the case of sickness, the employer is obliged to pay up to one
months salary to each employee. However, the amount payable by
the employer is reduced by the relevant amount paid by the Social
Security Fund.
Chapter 8 | Acquisition of real estate/Other tenure forms | 23
Chapter 8
Acquisition of real estate/

Other tenure forms
On page 106, under Ownership the third sentence of the first
For real estate owned by individuals, this tax is levied at progressive
rates ranging from 0.2% to 1% of the objective value whereas the tax
free threshold is EUR 200 000 per owner.
Also on page 106, after Ownership a new section called Special duty
on buildings which are supplied by electric power is inserted as
follows:
A special duty in favor of the State is imposed on buildings which are
supplied by electric power and used for residential or commercial
purposes and which are subject to real estate tax on 17 September of
each year. For the calculation of the special duty, the surface areas
price zone and age of the building as these are mentioned in the utility
bill issued by the Public Power Corporation or by the alternate
distributors of electric power, are taken into consideration with the
rates ranging from EUR 0.5 per sqm. to EUR 16 per sq.m. depending
on the price zone. The lowest bracket concerns persons who are
disabled or who have three or more children (under certain conditions)
who own buildings in areas with price zones up to EUR 3 000 whereas
the highest rate of EUR 16 concerns buildings in areas with price
zones of higher than EUR 5 000. Also, there is a surcharge rate which
corresponds to the age of the building (from 1 to 1.25).
The amount of the special duty is calculated by multiplying the
following: the surface area in sq. meters of the buildings on which the
duty of par. 1 of article 24 of Law 2130/1993 (Real Estate Duty) was
calculated by the Public Power Corporation (or the alternate
distributors of electric power), the rate of the special duty which
corresponds to the price zone of the building and the surcharge rate
which corresponds to the age of the building.
The special duty burdens the owner of the building and in case of
usufruct, the user. n cases of joint ownership, the duty burdens the
joint owners in proportion to the percentage ownership of each owner.

The user of the building is liable for paying the special duty, which is
payable with the utility bill for the consumption of electric power. In
case the user is a lessee, the payment of such duty by the lessee is
considered to set off any due or future rents. Any different agreement
between the parties is not valid.
The special duty is collected by the Public Power Corporation or the
alternate distributors of electric power. In case the special duty is not
paid, the Public Power Corporation and the alternate distributors of
electric power must disconnect the supply of electric power and will
reconnect it until the duty is paid.
Certain exemptions from the special duty are provided for buildings
which belong to the Greek State, State Owned companies, Municipal
and Communal Authorities and municipal enterprises, religious legal
entities exclusively for buildings which are used for pursuing their
worship, educational, religious and charitable purposes, recognized
foreign religious entities for buildings which are used exclusively for
pursuing their religious, church, charitable, educational, art or public
beneficiary purposes, foreign states in case such buildings are used
for the establishment of embassies and consulates on condition of
reciprocity etc.
Also, the following are exempted: common or public areas of
apartment buildings and hotels, and buildings which are characterized
as perceivable and are not owner occupied or do not provide income
as well as buildings which are characterized as historical or
archaeological monuments. Finally, buildings used exclusively for
agricultural or animal-breeding or small industry or industrial purposes
are exempted.
The special duty is not deductible for income tax purposes.
Appendix 3 | Summary of Company Law requirements | 25
Appendix 3
Summary of Company
Law requirements
Appendix 3 on page 117 is replaced by the following:
Branch
AE
EPE
No
No
Formation/Founders
Minimum number
of founders
Residence requirements No
Articles
No
Yes/Before
Yes/Before
One Stop Authority One Stop Authority
Registration
Yes
Yes
Yes
Publication
Yes
Yes
Yes
Minimum number
Residence requirements
Meetings
Annual within
6 months
of year end
Annual within
3 months
of year end
Shareholders
Board of Directors/
Administrator(s)
Minimum number
Residence
requirements
Meetings
Yes
Yes
Yes
(for at least one) (for at least one) (for at least one)
-
Branch
AE
EPE
Minimum value
EUR 0.30
EUR 30
Maximum value
EUR 100
None
None
EUR 60 000
EUR 4 500
Yes
Yes
Yes
(in selected cases)
No (certain
filing requirements
only)
Annual
Annual
Shares/Units
Capital
Minimum
Accounts
Audit
Publications
For further information please contact:

KPMG
3 Stratigou Tombra Street
Aghia Paraskevi, Athens 153 42, Greece
Telephone:+30 210 60 62 100
Fax:+30 210 60 62 111
400 esogeion Ave
Aghia Paraskevi, Athens 153 42, Greece
el: +30 211 1815600
2 N. Kountouriotou Street
Thessaloniki 546 25, Greece
Telephone:+30 2310 550 915
Fax:+30 2310 543 670
email: postmaster@kpmg.gr
kpmg.com/gr
2012 KPMG Certified Auditors AE, a Greek Societe Anonyme and a member firm of the
KPMG Network of independent member firms affiliated with KPGM International
Cooperative (KPMG International), a Swiss entity. All rights reserved. Printed in Greece.
The KPMG name, logo and cutting through complexity are registered trademarks or
trademarks of KPMG International.

Investment in Greece Updates

Diunggah oleh

Informasi Dokumen

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

Investment in Greece Updates

Diunggah oleh

Hak Cipta:

Format Tersedia

UPDATES

Numerous amendments have been introduced since the publication of the

Chapter 4 | Business entities | 5

On page 47, all paragraphs under Formation of an AE are replaced

The corporations establishment for corporate law purposes is

Chapter 4 | Business entities | 7

Similarly to AE companies, all actions required for the establishment of

registered address at legal representative must be published in the

Chapter 5 | Business taxation | 9

additional number of companies in certain cases (such as in case of

Chapter 6 | Taxation of individuals | 11

On page 85 under Overview the last three paragraphs are replaced by

Ministry of Finance (in practice such requested

Chapter 6 | Taxation of individuals | 13

The tax payable is decreased by 10% of:

Total annual amount of medical and hospital care expenses; up to EUR

an amount equal to 20% of the cash donation for the settlement of

Exceeding 100 000

On page 89 the third and subsequent paragraphs are replaced by the

Chapter 6 | Taxation of individuals | 15

Salaried residents living in Athens insured for social security purposes

Less Social security contributions (16.50%)

Calculation of income tax payable:

10% tax on EUR 3 000

18% tax on EUR 4 000

25% tax on EUR 10 000

35% tax on remaining EUR 8 235.00

Income tax thereon

Income tax payable

On page 91 under Income tax withholding on salaries in the second

Chapter 6 | Taxation of individuals | 17

Before the section Professional income two new sections called

As of 1 January 2012 a withholding tax of 25% is imposed on

On page 97, under Wage regulations/Labor Agreements the first

reduction of working hours in other weeks (the period of increased

temporarily exempt from being insured with a Greek social security

Further, under this heading, a new paragraph is inserted as follows:

In addition, an insured employee is entitled to collect a sickness

Chapter 8 | Acquisition of real estate/Other tenure forms | 23

Acquisition of real estate/

joint owners in proportion to the percentage ownership of each owner.

Appendix 3 | Summary of Company Law requirements | 25

For further information please contact:

Anda mungkin juga menyukai