By Christos ILIOPOULOS*
The online tax filing process, which has undergone a recent “lifting” by the Greek tax authority, is not only about the yearly tax returns, already a reality in Greece since at least 2010. Now, it is mainly about the inheritance or estate tax declaration, when the heirs declare to the tax office the assets which they inherit, and about the parental gift tax declaration, when the children receive real estate free gifts from their parents, in most cases without paying any transfer tax at all.
Up to now, these tax declarations had to be filed by physically visiting the tax office and filing a bunch of hardcopy documents. With the new system in place, the interested parties, meaning the heirs, or the persons who receive the parental gift or those who receive a donation of immovable property will not have to visit the tax office, but they will be able to file the necessary declaration and supporting documents from the office of their notary public. The tax authority will be able to review the documents filed and within days the reply will appear at the computers of the transacting parties, who can read the written reply of the tax authority by accessing online their digital tax file using their username and password. If the tax office has given the green light, the transactions (notarial deeds of acceptance of inheritance, parental gift or donation of property) will materialize and the relevant deeds will be signed and certified by the notary and the persons involved. Finally, these deeds must be registered with the local land registry where the immovable property is located, called Hypothykophylakeeo or Ktimatologio, so the deeds take full legal effect.
It is noted that the spouse and the children of the deceased can claim a tax free inherited share of at least 150,000 Euros per person and after the first 150,000 Euros tax free amount, the next 150,000 Euros incur an inheritance tax of only one percent (1%). This means that for spouse and children, if each of them inherits a share worth up to 300,000 Euros, the inheritance tax will be only 1,500 Euros. The surviving spouse can claim a tax free inheritance share up to 400,000 Euros, provided the marriage had lasted at least five years until the death of the deceased.
For the parental gift, which usually is a gift of property from parent to child, (but it can be the other way around, with the child gifting property to the parent), the tax free amount is 800,000 Euros, which means that the vast majority of parental gifts (goniki parochi) in Greece are tax free.
For the process of the inheritance settlement, it is advisable and for the parental gift and the donations of property it is mandatory that the real estate property be measured with a new survey map and other technical documents drafted by a civil engineer, to ensure that any apartment, building or structure legally transferred does not have any building violations. A number of certificates must be issued as supporting documents for the transactions, issued by the tax authority, the municipality, often the court, other public authorities and by a number of professionals. If the transacting parties (parents, children, heirs etc.) do not live in Greece, they can complete the entire process without having to physically come to the country, by signing specific powers of attorney at the Greek Consulate or at a notary public of their country. The text of such power of attorney must be drafted by a notary or an attorney in Greece.
*Christos ILIOPOULOS, attorney at the Supreme Court of Greece , LL.M.
