Personal Income Tax

What generally applies

If you are a natural person who has his residence in Greece, you have reached the age of 18 and you earn real or imputed income1,  regardless of whether you are a dependent member or not, then you are required to submit an income tax return every year through the digital portal myAADE by selecting “Tax services” → “Income” → Personal income tax return (E1-E2-E3).” Taxpayers who have made a commencement of activity for a sole proprietorship have a similar obligation.

More information on this obligation can be found at the link at:
1. Instructions for filing a Personal Income Tax return
2. FAQs on the tax return, its submission, as well as on the imposition or non-imposition of personal income tax.

[1] Imputed Income: The income calculated based on objective living expenses and expenses of acquiring assets of the taxpayer and his dependents, as defined in the law and is taxed when it is higher than his total real income.
Total exemption from income tax

If you have a disability of at least 80% and your income comes from salaried work, pensions and fixed wages, then you are fully exempt from income tax.

Exemption from paying income tax does not mean exemption from the obligation to fill in Form E1 and submit an income tax return.
The codes of Form E1 that you must fill in, in this case, can be found in Table 2.INFORMATION ITEMS.      

The exemption granted to disabled persons with a disability rate of at least 80% applies to the incomes obtained either by a tax resident of Greece or by a tax resident of a foreign country who obtains income in Greece and presents a disability of 80% or more, as long as the specified supporting documents are presented.

The income tax exemption also applies to the following income categories:

  • Pension payable to war invalids and victims or families of war victims, as well as peacetime invalids, military personnel in general, injured in the line of duty or their families.
  • Fees paid by the World Association of Disabled Artists (V.D.M.F.K.) to its members, foot and mouth painters, who are tax residents of Greece, exclusively for the work of painting paid by the above Association in foreign exchange.

The sums of money paid by the Organization of Welfare Benefits and Social Solidarity (OPEKA) from 01.01.2019 onwards, as welfare benefits in cash to people with disabilities, do not fall into any category of income.

The extrainstitutional allowance and any related amount paid to special categories of people with disabilities, regardless of the institution that grants them from 01.01.2022, does not constitute income (art. 169 of Law 4972/2022).

The above are not taxable and are not subject to the special solidarity contribution of article 43A of Law 4172/2013. These amounts can cover presumptions and be entered in codes 781-782 of Form E1 of the income tax return (E2105/2019 and E2077/2020 are related).

Exemption from the solidarity contribution

If you belong to the category of persons with any form of disability of 80% or more, then you are exempt from the imposition of the special solidarity contribution.

This exemption applies to any income from 01/01/2020.
The special solidarity contribution of Article 43A of Law 4172/2013 is abolished for all income, without exception, earned from 01.01.2023 onwards (Article 177 of Law 4972/2022).

Tax reduction by 200 euros

If you or your spouse or dependents have a disability of at least 67%, then you have an additional reduction by 200 euros in the tax that will result from your tax return, regardless of the income category. 

The codes of Form E1 that you must fill in, in this case, can be found in Table 3. TAX REDUCTION DUE TO DISABILITY.

This tax reduction by 200 euros also applies to:

  • Disabled officers, conscripts due to war, as well as war victims if their pension payment information notes are presented, showing the pension registration number, which must start with 3 or 4.
  • Officers who suffered injury or illness, which occurred due to hardships in wartime, provided that a certificate from the competent state agency granting them their allowances is presented.
  • Victims of terrorist acts if a certificate is provided by the relevant pension institution recognizing the taxpayer as a victim of a terrorist act forced to retirement for this reason, based on the relevant legislative framework, as applicable each time.
Exemption from Business Tax

Traders, natural and legal persons and freelancers are liable to pay an annual business tax if they keep books using the single or double-entry system. 
If you belong to the category of people with any form of disability of 80% or more and you are self-employed or have a sole proprietorship, then you are exempt from the imposition of the business tax.

Exemption from making expenses for purchasing goods and receiving services with electronic means of payment

If you belong to the category of people with a disability of 80% or more, then you do not have the obligation to use electronic means of payment (e.g., payment by credit or debit card, payment through a bank account, etc.) in order to secure the tax deduction.

Exemptions from annual objective living expenses (presumptions)

Living expenses, now called “objective living expenses,” are amounts that represent the minimum annual costs of using and maintaining assets such as homes, cars, yachts, aircraft, and swimming pools, as well as amounts that represent the minimum annual expenses of the taxpayer for his personal maintenance.
Excluded from these are:

  • As a living expense, the Passenger Car for Private Use of a disabled person that is exempt from Annual Road Tax.
  • Regarding the purchase of Private Use passenger cars specially adapted for the physically disabled over 67%. That is, those that have been modified after permission from the competent authority to be driven by persons with mobility disabilities of over 67% or to transport these persons together with the objects necessary for their transportation.
  • Expenditure on special schools for disabled people.
  • Expenses paid for domestic helpers, car drivers, teachers and other staff when you or a dependent person living with you has a disability of 67% or more due to mental retardation or physical disability.

Submit your income tax return online by filling out the codes that correspond to your case.
As long as the disability (yours or that of a member of your family) appears in IAPR’s system, then your tax return clearance will proceed by calculating the exemptions and reliefs you are entitled to.
Otherwise, you will be notified to send the necessary supporting documents to the competent Tax Office, in order to register them and to be able to clear your declaration with the corresponding reliefs/exemptions.

Disability certification for income tax purposes

For the exemption from income tax and from the special solidarity contribution, it is noted that in any case when the taxpayer receives a pension from a primary insurance institution, because he has a disability of at least eighty percent (80%), it is sufficient to present a certificate from the pension institution or a retirement decision form or a decision form  to extend the pension, from which it appears that, following a medical opinion by the competent health committee, he retired with a disability rate of at least eighty percent (80%), until the period of time that the said disability is expected to last. When the disability pension becomes automatically final (extended for an indefinite period), for the insured of all Social Security and Social Solidarity Agencies, Branches and Sectors, a new medical examination by a competent Health Committee is not required, and for its exemption from income tax it is required:

  1. decision to permanentize the disability pension (or to extend it indefinitely) by the competent pension institution, and
  2. medical opinion of the Disability Health Committee of all Social Security and Social Solidarity Agencies, Branches and Sectors, that was valid at the time of the permanentizing of the disability pension, which certifies a disability rate of 80% or more, whether it concerns an opinion of a Health Committee before K.E.P.A., or an opinion of a KE.P.A. Health Committee from 01/09/2011 onwards (Γ23/312-30.12.2016 document of the Social Security Foundation of Greece - I.K.A.).

In the above cases, by competent health committee is meant the health committee of any of the Agencies, Branches and Sectors of Social Security and Social Solidarity, as well as the one whose medical opinions, according to the relevant provisions, are mandatory for the insurance-pension agency that grants the pension. Furthermore, the medical opinion containing a medical judgment of incapacity is also accepted for any job with a disability rate of 80% or more, and in the event that the medical opinion contains a definitive judgment regarding the degree of disability or is valid for life, it retains its validity and becomes accepted regardless of the time of its issuance or the abolition of the health committee that issued it, that is, even when it is the opinion of a health committee before KE.P.A. (Circular 2225/2021 is related).

If the taxpayer has more than one medical opinion, from the same or different health committees and both are valid within the tax year 2021, certifying different rates of disability, then the medical opinion with the highest rate of disability is taken into account.
In the event that a medical opinion has been issued by a secondary health committee, it supersedes the opinion of the primary health committee.

In order to reduce the income tax by two hundred (200) euros, the following supporting documents are required, which certify the status of the taxpayer or his dependent member who is entitled to the said reduction:

  • For persons with a disability rate of at least sixty-seven percent (67%), medical opinion of the relevant health committees of the Disability Certification Center (KE.P.A.) or the Supreme Army Health Committee (A.S.Y.E.).
  • For the certification of the 67% disability rate, apart from the medical opinions of A.S.Y.E. and the medical opinions issued by the health committees of A.N.Y.E., A.A.Y.E., the A.Y.E. (Supreme Health Committee) of the Hellenic Police and the A.Y.E. of the Fire Brigade are also accepted for the certification of the taxpayer’s disability, since while all the Disability Certification Committees that operated in the Social Security Agencies, in the prefectures and the State were abolished, the Supreme Health Committees of the Army (A.S.Y.E.), the Navy (A.N.Y.), the Aviation (A.A.Y.E.), the Supreme Health Committee of the Hellenic Police and the Supreme Health Committee of the Fire Brigade continue to exercise their duties, for the certification of the taxpayer’s disability.
  • The opinions already issued before 01.09.2011 (date of the start of operation of the KE.P.A.) by the health committees of the prefectures can be used to recognize the tax relief in question indefinitely, if it is an indefinite judgment, otherwise until the date they expire.

In all the above medical opinions, in order to be accepted, the percentage of the disability of the person concerned must be explicitly established and confirmed, as well as the period of time that the said disability is expected to last and, in any case, must be in force in the tax year for which the interested party requests the application of the relevant provisions.
For the tax reduction by two hundred (200) euros, any occupational or insurance disabilities are not taken into account.