Electronic means of transaction

Electronic means of payment include, but are not limited to, cards and means of payment with cards [debit or credit cards, prepaid cards], payment through the payment account of Payment Service Providers of Law 4537/2018 (credit transfer, direct debit orders , standing orders, bank or postal cheques), through electronic banking (e-banking), electronic wallet (e-wallet), paypal, etc., as well as the payment of cash to Payment Service Providers of Law 4537/2018 (in counter or at an easy-pay machine).

It is reminded that the above electronic means of payment also include electronic means of foreign origin.

From which countries should the expenses come?

From tax year 2020 onwards, the costs of acquiring goods and receiving services in the country or in member states of the European Union or the EEA, incurred by taxpayers, must be paid by electronic means of payment of domestic or foreign origin.

Calculation

The required amount of expenses with electronic means of payment for each tax year is set at 30% of the actual income, which arises in the country and/or abroad and comes from salaried work and pensions, from business activity and from real estate and up to €20,000 of expenses.

Also, in accordance with paragraph f of paragraph 6 of article 15 of Law 4172/2013 if the expenses, which have been incurred within the given tax year and concern personal income tax and ENFIA payments, regardless of the time certification of these, personal or professional loan obligations to financial institutions (in Greece or abroad) and for rents, exceed 60% of the real income, as defined by this article, then the required percentage of expenses is limited to 20%, under the condition that the above expenses have been paid by electronic means of payment. The rent includes the amount paid for the rent of the taxpayer's main and/or secondary residence, business accommodation, as well as the amount paid for the rent of the residence of his dependent children who are studying.

Exemptions

• Taxpayers who have reached their seventieth (70th) year of age by the end of each tax year.
• People with a disability rate of eighty percent (80%) or more.
• Those who are in judicial support.
• Foreign tax residents who are required to submit a declaration in Greece.
• Public officials and civil servants who serve abroad, as well as tax residents of Greece who live or work abroad. The concept of foreign country includes both the countries of the European Union or the EEA, as well as third countries.
• Minors who are required to submit an income tax return.
• Those serving their mandatory military service.
• Taxpayers who live permanently in villages with a population of up to 500 inhabitants and in islands with a population of less than 3,100 inhabitants, according to the last census, unless they are touristic places. Tourist places are defined as those included in Decree 899/1976, as amended by Decree 664/1977.
• Taxpayers who are beneficiaries of Social Solidarity Income (KEA).
• Taxpayers who are in a state of long-term hospitalization (beyond six (6) months).
• Those who live in a nursing home and psychiatric facility.
• The prisoners.

In which cases an additional discount applies

An extra income deduction equal to 30% of the receipts to be presented from 20 professional categories is provided for:

• Veterinary services
• Plumbing, cooling, heating conservator works
• Electrician works
• Insulation, masonry, plastering, tiling works
• Carpentry work
• Roof and sheet metal window location works etc.
• Concrete works
• Taxi services
• Hairdressers, barbershops and beauty shops
• Funeral services
• Massage services
• Physical wellness services
• Cleaning services and domestic services
• Developing photos
• Dance schools
• Gyms and leisure activities with subscription
• Various leisure services
• Personal care and nursing (excluding hospital activities)
• Legal services
• Childcare services.

The benefit to taxpayers will be proportional to the amount of income. Specifically, they will save tax:

• up to 450 euros if they have an annual income of up to 10,000 euros
• up to 1,100 euros if they have an annual income of 10,000.01 to 20,000 euros
• up to 1,400 euros if they have an annual income of 20,000.01 to 30,000 euros
• up to 1,800 euros if they have an annual income of 30,000.01 to 40,000 euros
• up to 2,200 euros if they have an annual income of more than 40,000 euros.

If the minimum required amount is not covered, then the tax is increased by the amount resulting from the positive difference between the required amount and the declared amount, multiplied by a factor of 22%.