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Greece – Court decision on tax residency

Written by
KREMALIS LAW FIRM, offering full service for employment matters in Greece.
The Dispute Resolution Division ruled on 19  October 2018 that even if someone has worked at a University in Greece, made a living in this way and kept tax records, this does not necessarily make them a Greek tax resident.

The court ruling that the Administration must make an overall assessment of criteria beyond financial or professional activities, including: where the person’s principle residence is and the centre of their vital interests.

This ruling follows previous court decisions, which allowed someone who lives abroad but does paid work in Greece, not to be considered Greek tax resident. This enables them to submit to Greek tax only for income obtained in Greece, so avoiding double taxation.

These decisions have clarified that the centre of vital interests is not the only criterion for determining tax residency. Therefore, the centre of vital interests means the personal, financial and social relations of a person. The Administration must assess all other elements, including: being present in the country, the presence of family members, the exercise of professional activity, political activity etc.