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Tax exemption for international entities

Greece

The Ministry of Finance clarifies that non-Greek legal entities are exempt from capital gains tax on the disposal of shares, bonds and other securities in Greece. Taxand Greece provides an overview of the new revisions.

The Greek Ministry of Finance issued guidelines (Circular POL 1032/2015) in relation to the taxation of gains from the disposal of securities. The new guidelines concern both individual taxpayers and legal entities disposing of shares, bonds and other securities. Shares in shipping companies are not affected by the rules interpreted by the guidance.

The guidelines clarify among others that:  

  • capital gains earned from the disposal of the assets in question by foreign legal persons/entities without a Greek permanent establishment are not subject to Greek income tax
  • capital gains arising from the disposal of units in UCITS seated in Greece or EU/EEA are tax exempt, while capital gains from the disposal of units in UCITS seated in third countries are subject to Greek income tax  
  • capital gains arising from the disposal of Greek corporate bonds issued under the regime of Law 3156/2003 are tax exempt; the same applies for capital gains arising from the transfer of corporate bonds issued by EU/EEA companies

The new guidelines were issued on 26 January 2015, before the new government came into power in Greece.

Discover more: Greek tax authorities clarify that non‐Greek resident legal entities are tax exempt 


Your Taxand contact for further queries is:
Daphne Cozonis
T. +30 210 69 67 000
E. d.cozonis@zeya.com

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Taxand's Take

International entities in Greece should consider the tax implications, as covered in the guidelines, to ensure they are aware of all the benefits and obligations they will have to meet. 

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