Moving to Greece and afraid of tax tapestery? Fret not! We’ve got you covered!
As an expat in Greece, understanding the nuances of the local tax system is paramount. One of the most common queries revolves around the distinction between the Tax Number and Tax ID.
This article aims to shed light on these two essential components, ensuring you’re well-equipped to navigate the Greek financial landscape with ease and confidence.
Let’s dive in!
What Is The Tax Number In Greece?
The individual’s tax identification number is the AFM (TIN). In Greece, it is necessary for many regular transactions. Check out the procedure for requesting a Greek AFM – tax identification number. Each person’s nine-digit number is distinctive.
It is used while corresponding with Greek government officials and filling out virtually any paperwork, such as:
- Before beginning a new job
- Making a bank account opening
- Remitting tax
- Investing in a boat, automobile, or other assets
- Acquisition of a fishing license
- The connecting of utilities
- The act of switching driver’s licenses
Requirement of Greek Tax Number
Any person who lives in Greece or who owns property there must apply for an AFM number. The local Tax Office/Internal Revenue Services (Eforia), either in the area of residence or where the person is purchasing property, is where one can receive the AFM number (also known as a TIN). Greek tax offices are typically open from 7:30 am until 2:30 pm.
In contrast, many tax offices don’t open until after 7:30 am and remain open until 1:30 pm because workers must only put in 5.5 hours daily.
A completed application form must be submitted in person at a nearby Eforia or by an authorized individual (such as a lawyer or accountant) (Form M1). The following records are necessary:
- Passport along with its copy
- Those without passports are required to present a birth certificate.
The Eforia staff can confirm that you might need the following records with photocopies:
- A marriage license
- Birth registration
For non-EU citizens, a visa or other necessary documentation: You have two options in Greece for proving your residency or either present a lease or produce a water or power bill in your name.
You could also fill out the declaration form, known in Greek as the “Ypeuthini Dilosi,” available at tax offices.
How to get a Greek Tax Number as an Ex-pat
For ex-pats and foreigners, as well as for businesses, obtaining a Greek Tax ID number might be difficult. Not only is there a language barrier, but there are also unfamiliar procedures to follow and specific Greek documentation requirements.
Greek-speaking tax attorneys can assist by ensuring you stay aware of translation and that the process with the tax authorities goes as smoothly as possible.
Greek English-speaking tax attorneys are familiar with the procedures and have good working relationships with the authorities, so ex-pats in Greece should be OK with tax compliance.
Working with Greek professionals in your area is essential because there’s a good chance that an ex-pat may provide the tax authorities with false information, which would only make things worse for the potential taxpayer.
How long must you wait for your AFM, and why?
Obtaining your AFM Greek tax ID could take more than one month. A tax officer must validate the authenticity of the supporting documentation before granting an AFM.
The validity of the submitted information and the truthfulness of the provided proof of address will be confirmed. It may take some time because this process is challenging.
Before authenticating the validity of the given documents, no tax office in Greece can issue an AFM tax number, and this authentication procedure might take up to a month.
How to get TAXIS.net and its benefits?
To register for and utilize the TAXIS.net online platform, you must obtain your Greek AFM tax identity number first. It is crucial to register on TAXIS.net since this service enables you to carry out the following actions:
- File your annual tax return.
- Create a certificate for your AFM tax identification number.
- Provide an income tax certificate.
- Get social assistance (if eligible)
- Verify your insurance clearance and other official information about your financial and employment position.
You can generate a unique login and password by entering this secret number on your first visit to the TAXIS.net platform. These will be needed to connect to the platform.
What If You Have Lost Your Greece Tax ID?
You can request a duplicate of your Greece Tax Identification Number (TIN), also known as an AFM (Αριθμός Φορολογικού Μητρώου), by following these procedures:
Get a duplicate of your TIN by contacting your neighborhood tax office in person or over the phone. To verify your identity, you will need to give some personal information.
Alternatively, you can submit a request for a duplicate TIN online at www.aade.gr, which is the website of the Independent Authority for Public Revenue. Choose “Taxpayer Account” from the list of services under “Services for People” on the website. You can open an account and ask for a second TIN from there.
If you cannot get your TIN back via these procedures, you can go to your neighborhood tax office with your ID card or passport and ask for a new TIN.
Remember to safeguard your TIN and notify any necessary organizations and authorities if it changes.
What Is The Freelance Tax Number In Greece?
If you work in Greece as a freelancer or independent contractor, you must register and pay VAT there. Although certain goods and services are subject to reduced rates of 13% and 6%, the Greek government nevertheless charges a regular VAT rate of 24%.
Standard Vat rates are usually 24%, although they can be as low as 13% for certain types of tourism and other basic consumer goods like food and kid’s products.
For prescription drugs, cultural events, and some utilities like gas and electricity, VAT can be further reduced to 6%.
The relevant information on Greek VAT law is contained in the General Tax Law, and VAT administration is handled by the Greek Ministry of Finance in coordination with regional tax authorities.
When Should a Greek Freelancer Register for VAT?
In Greece, there is no threshold for VAT registration, thus if you fall under one of the following categories, you must register for VAT:
- You sell or provide yourself with Greek VAT-liable products or services.
- You bring products into Greece.
- You plan activities and programs for the nation.
- For a year, you’ve been providing “Supply and Install” services.
- You export Greek products to other EU nations.
The VAT registration threshold is €35,000 per year for foreign independent contractors who sell their services to customers online. As a result, you must register for VAT as soon as your yearly sales revenue surpasses €35,000.
You don’t have to establish a local business or practice, but just like all other Greek taxpayers, you must record your VAT, make all required payments, and follow all other applicable laws.
In wrapping up, the differentiation between Tax Number and Tax ID in Greece is more than just semantics; it’s about ensuring compliance and understanding your obligations as an expat.
With this knowledge in hand, you’re better positioned to make informed decisions, ensuring a seamless and hassle-free experience in the beautiful Hellenic Republic.
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