Capital Gains Taxation in Greece
In Greece, capital gains taxation is a crucial aspect of the tax system, affecting individuals and businesses alike. The legal framework governing capital gains taxation is outlined in the Greek Tax Code (Law 4172/2013), specifically in Article 43. This article defines capital gains as the profit derived from the disposal of assets, including real estate, stocks, bonds, and other investments.
Definition of Capital Gains
Capital gains in Greece are defined as the difference between the selling price of an asset and its acquisition cost. The acquisition cost typically includes the purchase price, any expenses incurred during the acquisition process, and any improvements made to the asset.
Taxable Capital Gains
Taxable capital gains are calculated by subtracting the acquisition cost from the selling price. Any expenses related to the sale, such as brokerage fees or legal fees, can be deducted from the selling price to reduce the taxable gain.
Tax Rates
Capital gains in Greece are taxed at a flat rate of 15%. However, certain exemptions and deductions may apply, depending on the type of asset and the taxpayer's circumstances.
Legal Framework
The Greek Tax Code (Law 4172/2013) provides the legal framework for capital gains taxation. Article 43 outlines the general principles of capital gains taxation, including the definition of capital gains, the calculation of taxable gains, and the applicable tax rates.
Policy Objectives
The capital gains tax system in Greece aims to generate revenue for the government while also encouraging investment and economic growth. The flat tax rate of 15% provides a relatively low tax burden on capital gains, making Greece an attractive destination for investors.
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