Double taxation agreement article Greece: What you need to know

If you are a foreign investor or business owner who has ever dealt with taxes, you might have heard about double taxation. Double taxation occurs when the same income is taxed twice by two different countries. This may happen when you operate a business or receive income in two or more countries that have different tax laws. However, to avoid this unfair tax burden, countries sign Double Taxation Agreements (DTAs), which allow taxpayers to avoid being taxed twice.

Greece has signed double taxation agreements with over 60 countries worldwide, including Germany, Russia, the United States, and China. These treaties have been signed to promote cross-border trade and investment by avoiding tax discrimination based on nationality.

In this article, we will discuss the double taxation agreement article Greece and its impact on foreign businesses and investors operating in Greece.

What is Double Taxation Agreement Article Greece?

The double taxation agreement article Greece (DTA Greece) is a bilateral agreement between Greece and another country or jurisdiction that aims to eliminate double taxation on income and taxes paid by foreign investors and businesses in Greece. The agreement typically specifies the taxation rates in each country, the types of income that can be taxed, and the methods for avoiding double taxation.

The DTA Greece is essential for foreign businesses and investors as it ensures that they are not taxed twice on the same income earned in Greece. In addition, it provides certainty and stability to investors by clarifying the tax rules, which encourages more investments and enhances economic growth.

Key features of the Double Taxation Agreement Article Greece

The DTA Greece contains several features that are beneficial to foreign investors and businesses. Some of the key features include:

1. Taxation rates: The DTA Greece specifies the taxation rates for different types of income earned in Greece. It ensures that foreign investors and businesses are taxed at the same rate as local investors and businesses.

2. Taxation of income: The DTA Greece defines the types of income that can be taxed in Greece. Generally, it includes income from immovable property, dividends, interest, royalties, and other types of income.

3. Tax credits: The DTA Greece allows foreign investors and businesses to claim tax credits for taxes paid in Greece against their home country or jurisdiction`s tax liability.

4. Prevention of tax evasion and avoidance: The DTA Greece also includes provisions for the prevention of tax evasion and avoidance. It ensures that investors and businesses do not misuse the agreement to avoid taxes or engage in improper tax planning.

Conclusion

The double taxation agreement article Greece is a vital tool for foreign investors and businesses operating in Greece. It helps to eliminate the unfair burden of double taxation and provides certainty and stability to investors. If you are planning to invest or operate a business in Greece, it would be best to consult an experienced tax professional to understand the tax implications and benefits of the DTA Greece.