Τaxpayers whose tax residence is in Greece are subject to tax on their worldwide income obtained within a certain tax year, i.e., on their taxable income obtained in Greece and abroad (Article 3 of the ITC). Foreign sourced income is any income that in not Greek sourced (Article 5 of the ITC). In cases where the foreign sourced income is obtained in a country with which Greece has concluded a Double Taxation Convention, which determines whether the income will be taxed in the source state, in in the state of tax residence of the individual who obtains it, or in both states, the provisions of the relevant Convention are applied, due to increased formal validity.

When a tax resident of Greece receives income arising in another country and there is a Double Taxation Avoidance Agreement (DTA) in force between Greece and this other country, the income will be taxed according to the provisions of the DTA between Greece and this other country. The taxpayer must present to the authorities of this other country a Greek tax residence certificate, obtained through myAADE digital portal here.

Foreign tax credit – Double taxation avoidance
For income of all categories (from employment and pensions, from business/agricultural activity, from capital, from capital gains), which was obtained abroad, by a Greek tax resident, the payable income tax (domestic), in respect of that income, is reduced by the amount of tax paid abroad for that income. The reduction of the income tax provided for income obtained abroad may not exceed the tax that would otherwise be attributable in Greece on this income (article 9 ITC). The limitation of the foreign tax credit up to the amount of the tax attributable to this income in Greece applies in any case where both the foreign country and Greece have the right to tax, whether it is foreseen on the basis of the DTA that both countries have the right to tax or there is no agreement with the source country of the income.