The time, the way of submitting the declarations, the conditions and limits of exemption from taxation in case of acquisition of a first residence, the scales of tax calculation and what applies to the time of limitation of the cases are listed in detail in the form of answers to the 12 commonly asked questions and for the purpose of fully informing taxpayers.
The most common questions and the corresponding answers of AADE are detailed as follows:
1 When is gift-parental benefit tax imposed?
Parental benefit or donation tax is imposed when an asset or sum of money is transferred by parental provision to a natural person or when an asset or sum of money is donated to a natural or legal person.
2 Who must submit the declaration of donation-parental benefit?
The declaration must be submitted by both contracting parties (donor and recipient).
3 To which tax agency is the gift-parental benefit tax return submitted?
The declaration is submitted to the DOU of the income tax of the person liable for the gift tax or of the child, and in case the competent authority for receiving the income tax declaration is the KEFODE of Attica or Thessaloniki, it is submitted to the KEFOK of Attica and Thessaloniki, respectively. If the donee or the child lives abroad or has its headquarters abroad, KEFOK Attica is responsible.
4 What is the deadline for submitting the gift-parental allowance tax return?
In the event that a notarial document is drawn up for the donation or parental benefit, the declaration is submitted before the contract is drawn up. When no contract is drawn up, the declaration is submitted within 6 months of the delivery of the object of the donation or parental benefit.
5 What are the conditions for exempting the first residence from parental allowance tax?
a) The child requesting the exemption, his/her spouse and their minor children do not have the right to full ownership or usufruct or to live in another residence or an ideal share of a home that meets the family’s housing needs or the right to full ownership of a buildable plot of land or on an ideal plot share, to which corresponds a building area that meets their housing needs and are located in a municipality or community with a population of more than 3,000 inhabitants. The housing needs are considered to be covered if the total area of the above properties is 70 sq.m., increased by 20 sq.m. for each of the first two children and by 25 sq.m. for the third and each of the subsequent children of the beneficiary.
b) The child must be Greek or a citizen of EU member states. and EEA countries.
c) The property to be acquired by full ownership and in its entirety.
d) The tax exemption for the acquisition of a first home is granted for one time. The child is not exempted if he/she or his/her spouse or their minor children have already been exempted from transfer or parental benefit or inheritance tax.
e) The residence or plot of land must remain in the ownership of the child for at least five years.
f) The request for the exemption is submitted with the timely declaration before the contract is drawn up.
6 What are the tax-free amounts for the acquisition of a first home with parental benefit?
The exemption is granted for a home value of up to €200,000 for each minor or unmarried and up to €250,000 for married, which is increased by €25,000 for each of the first two children and by €30,000 for the third and each of the following minor children, of which the beneficiary has custody of. The amount of the exemption also includes the value of a car parking space and a storage space, for a surface area of up to 20 m2 each, as long as they are on the same property and acquired at the same time. An exemption is also granted for land worth up to €50,000 for each minor or unmarried person and up to €100,000 for each married person, increased by €10,000 for each of the first two children and by €15,000 for the third and each of the following children. The above amounts apply to the acquisition of a first home with inheritance and with parental allowance. The above surcharge, with regard to the inheritance tax, is valid, as long as the heir inherits a single residence or a single plot in its entirety and by full ownership and not an undivided percentage.
7 How is the gift tax – parental benefit calculated?
Taxpayers, depending on their kinship with the donor, are classified into three (3) categories, for each of which different tax scales apply with different tax-free amounts and rates.
Category A includes:
a) The spouse or the person with whom the donor has entered into a cohabitation agreement,
b) the children,
c) the grandchildren and
d) the parents of the donor.
The B category includes:
a) blood descendants of the third and subsequent degrees (great-grandchildren, etc.),
b) second and subsequent blood ascendants (grandparents, great-grandparents, etc.),
c) voluntary or judicially recognized children against the ascendants of the father who recognized them,
d) the descendants of the recognized against the recognizer and his ascendants,
e) brothers (half-brothers or half-brothers),
f) third-degree blood relatives (nephews of the inheritor or the donor),
g) stepfathers and stepmothers,
h) the children from a previous marriage of the spouse,
i) illegitimate children (brides and grooms) and
j) the descendants (father-in-law – mother-in-law) of the heir or the donor.
Category C includes anyone else related by blood or bloodline or exotic to the donor.
8 What are the applicable tax rates on donations-parental benefits?
A new tax scale applies to beneficiaries of the A’ category, for donations or parental benefits made to them from 1-10-2021, with a tax-free limit of 800,000 euros and the imposition of a tax at an independent rate of 10% for the excess value after deduction of the tax-free amount, as long as the taxable value of the asset donated or to which the parental benefit concerns exceeds 800,000 euros.
For eligible persons of B’ and C’ category, the scales listed in the relevant tables apply.
9 To which assets does the new Class A scale apply to donations and parental benefits?
It applies to donations and parental benefits of any kind of property (movable and immovable), with recipients being the persons of the A’ category (spouse, cohabiting partner, children, grandchildren and parents) and to monetary parental benefits or monetary donations to the above persons, as long as these are carried out (provably) by transferring money through financial institutions.
10 How is the donation or parental provision of monetary amounts taxed?
The donation or parental provision of sums of money (except for those transferred through financial institutions, for which a tax-free 800,000 euros applies for beneficiaries of the A’ category), is taxed independently at a rate of 10% for recipients who fall under the A’ category, 20% for recipients belonging to category B and 40% for recipients belonging to category C.
12 In how many installments is the tax on donations and parental benefits paid?
a) The tax arising on the basis of an initial or timely amending declaration is paid in 12 equal bimonthly installments, not less than €500, except for the last one. If the donor-child is a minor, the number of installments is doubled, provided that each installment is not less than €500, except for the last one.
b) After the submission of an overdue amending declaration or after the audit, the tax is paid within 30 days from the notification of the act of corrective determination.
c) In the event of a final administrative court decision, the tax is paid in two equal monthly installments.
d) In the case of a donation-parental provision of monetary amounts and mobiles, the tax is paid as a rule within 3 days from the submission of the declaration or from the issuance of the act of administrative determination of the tax respectively.
11 How are parental benefit donation tax returns submitted?
The initial timely declarations of donation tax and parental benefit, for cases where the drawing up of a contract is required, are submitted digitally through the myPROPERTY application (before the contract is drawn up and signed, if they concern:
a) properties which are located in areas where the system of Objective Property Value Determination (APAA) applies,
b) movable assets of any kind (indicative shares, receivables, securities, cars, works of art, etc.) and
c) sums of money to the persons belonging to the A’ category.
Digitally through the myPROPERTY application, the amending statements of the above, as long as the relevant contract has not yet been drawn up, as well as the initial declarations of donation tax-parental provision of mobile phones or money that have been made from 1/1/2022 onwards and for for which a notarial document is not drawn up. Particularly:
a) The initial (due and overdue) donation tax declarations/parental provision of movable assets (indicative of cars, company shares, listed or unlisted shares, works of art, etc.) to the beneficiaries of all categories of the tax scale. Also, the initial (due and overdue) gift/parental tax returns, which are transferred to the beneficiaries of the A’ category of the tax scale by transfer between financial institutions.
b) The initial (due and overdue) donation/parental tax declarations, except for those defined in paragraph a).
Declarations concerning other cases of donation-parental allowance tax are still submitted in paper form, either through the “My Requests” application, or with the procedure specified in Decision A.1137/2020 under items A.1137/2020.
THE TAX SCALE OF DONATIONS
CATEGORY B’
| Stairs
(in Euro) |
Scale factor | Tiered tax
(in Euro) |
Taxable property
(in Euro) |
Corresponding tax
(in Euro) |
| 30.000 | — | — | 30.000 | — |
| 70.000 | 5% | 3.500 | 100.000 | 3.500 |
| 200.000 | 10% | 20.000 | 300.000 | 23.500 |
| An exaggeration | 20% |
CATEGORY III
| Stairs
(in Euro) |
Scale factor | Tiered tax
(in Euro) |
Taxable property
(in Euro) |
Corresponding tax
(in Euro) |
| 6.000 | — | — | 6.000 | — |
| 66.000 | 20% | 13.200 | 72.000 | 13.200 |
| 195.000 | 30% | 58.500 | 267.000 | 71.700 |
| An exaggeration | 40% |
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