Greece: Implementation of Capital Gains Tax approved
On 21 December 2013, the Greek Parliament approved the Income Tax Bill implementing Capital Gains Tax (CGT) as of
1 January 2014
The 15% Capital Gains Tax (CGT) will be applicable to capital gains derived from transfers of the following securities:
- Equities (listed and unlisted);
- Greek government and corporate bonds;
- Greek Treasury Bills; and
- Derivatives.
CGT rates
The applicable tax rates are as follows:
Individuals
Individuals (resident and non-resident) will be subject to 15% CGT.
However, non-resident individuals are, provided that they submit the relevant documentation to the tax authorities, exempted from CGT when a Double Taxation Treaty (DTT) between their country of tax residence and Greece is in force.
Legal entities
Legal entities (resident and non-resident) are in general exempt from CGT, such income being classified as income from business activity, and are taxed according to the relevant rates.
Note: No withholding obligation applies to Clearstream Banking1 and capital gains must be reported to the local tax authorities by the beneficial owner of the securities with the annual filing of returns.
Impact on customers
No CGT will be applied on Greek equities and bonds held in Clearstream Banking. However, final beneficial owners that are liable to CGT will be responsible for declaring the gains to their local tax authorities. Beneficial owners should consult with their tax advisor on this matter.
Customers are reminded that, in line with the current holding restriction, they may not hold Greek corporate bonds in Clearstream Banking, whether they are themselves Greek tax residents and beneficial owners of such corporate bonds or they hold such corporate bonds on behalf of a beneficial owner that is Greek tax resident.
Furthermore there is no impact on Greek Sales Tax, which will continue to apply despite the CGT implementation.
Further information
Further guidance is still expected from the Greek Ministry of Finance regarding the beneficial owner documentation and practical implementation of the CGT.
For further information, customers may contact the Clearstream Banking Tax Help Desk on:
| Luxembourg | Frankfurt | |
| Email: | tax@clearstream.com | tax@clearstream.com |
| Telephone: | +352-243-32835 | +49-(0) 69-2 11-1 3821 |
| Fax: | +352-243-632835 | +49-(0) 69-2 11-61 3821 |
or Clearstream Banking Customer Service or their Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500 (CBF) and Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Register of Commerce and Companies under number B-9248 (CBL).
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