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Greece clarifies tax rules for money transfers between relatives and friends
🇬🇷 Greece /Economy & Trade

Greece clarifies tax rules for money transfers between relatives and friends

From Ta Nea · () Greek

Translated from Greek, summarized and contextualized by DistantNews.

At a glance

News Sources not specified Context piece
  • Greek tax authorities are clarifying rules on money transfers between relatives and friends to distinguish between everyday small amounts and taxable gifts.
  • Transfers via IRIS or other banking methods are generally not taxed if they are small and cover daily needs, but repeated large transfers may be scrutinized.
  • Gifts of money to close relatives up to 800,000 euros are tax-free if declared through the myProperty platform; larger amounts incur a 10% tax, and cash gifts are taxed at 10% without an exemption.

Greek tax authorities are clarifying the rules surrounding money transfers between individuals, aiming to differentiate between casual, everyday transactions and taxable gifts or parental provisions. The clarification comes after confusion arose regarding the use of the IRIS payment system and other banking methods for sending money.

The bell can ring when transactions suggest a specific pattern that points to abusive practice.

— Hellenic Revenue Administration (AADE)Clarifying when money transfers become a tax concern.

The Hellenic Revenue Administration (AADE) has stated that small, regular transfers between family, friends, and acquaintances, whether via IRIS or other banking channels, do not typically attract special tax interest. However, the AADE will scrutinize transactions that suggest a pattern of abuse, such as frequent, consistent, and large transfers.

Specifically for pocket money given to children and grandchildren, the AADE considers small amounts intended for daily expenses and minor costs as not constituting a financial gift. Therefore, each such transfer does not require a gift declaration on the myProperty platform. This distinction separates casual allowances from formal financial provisions.

When it comes to small amounts that cover daily needs and minor expenses, the AADE does not treat them as a financial gift.

— Hellenic Revenue Administration (AADE)Explaining the tax treatment of pocket money for children and grandchildren.

The rules change significantly for formal parental provisions or gifts. These can be subject to taxes ranging up to 40%. Gifts of money up to 800,000 euros to individuals in the first tax category (children, spouses, parents, grandchildren) are tax-exempt, provided they are made through the banking system and declared. Amounts exceeding this threshold are taxed at 10%.

Gifts of money up to 800,000 euros to individuals in the first tax category... are tax-exempt, provided they are made through the banking system and declared.

— Hellenic Revenue Administration (AADE)Detailing the tax-exempt limit for gifts to close relatives.

Taxpayers must declare financial parental provisions through the myProperty platform. The AADE then verifies these transactions against data from financial institutions. If a transaction is not confirmed by the bank, or if the taxpayer fails to provide necessary documentation, the tax office may impose a tax from the first euro, without considering the tax-exempt amount. This tax can be 10%, 20%, or 40%, depending on the degree of kinship. Financial parental provisions made in cash, outside the banking system, are taxed at a flat rate of 10% with no exemption.

Financial parental provisions made in cash... are taxed at a flat rate of 10%, without an exemption.

— Hellenic Revenue Administration (AADE)Specifying the tax rule for cash gifts.
DistantNews Editorial

Originally published by Ta Nea in Greek. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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