On the collection of expenses through electronic means of payment are counted all transaction, payment through payment accounts (credit transfer, direct debits, standing orders, bank or electronic checks), and carried out through e-banking (e-banking, mobile banking, phone banking),e-wallet, PayPal, etc. as well as the payment of cash to Payment Services Providers of n.4537/2018 (at the counter or at easy-pay machines), in Greece, in the European Union and EEA countries (Iceland, Liechtenstein and Norway), are eligible for tax deduction purposes, at minimum amount levels, according to the following scale:

The amount of special solidarity levy of Article 43 A of Law 4172/2013, as it results upon the issue of the act of administrative tax allocation of the respective tax year, and the amount of maintenance paid by the taxpayer to their divorced spouse or to a party of a partnership agreement and/or to a dependent child thereof, if paid by means of electronic payment, are not included in the calculation of real income. In addition, the income resulting from the added balance of presumptions of par. 1 of Article 34 of Law 4172/2013 does not fall within the meaning of real income.

For the taxpayer whose one or more accounts are seized, except for the account exempt from seizure of Law 4254/2014 (A’ 85), at any time until the 31st of December of the respective tax year, the limit of expenditure that has to be paid by using means of electronic payment within the tax year is limited to five thousand (5,000) Euros.

Furthermore, in the case where the expenditure, which has been made within the respective tax year and concerns payments of income tax of natural persons and Unified Property Ownership Tax (ENFIA), regardless of the time of affirmation thereof, personal or professional loan obligations to financial institutions (in Greece or abroad) and rents, exceeds sixty percent (60%) of the real income, as it is determined by this article, then the required amount of expenditure is limited to twenty percent (20%), under the condition that the above expenditure has been paid by means of electronic payment.

Rental expenses include the amount paid for rent as regards the taxpayer's primary and/or secondary residence, any business premises, as well as the amount paid as rent for the residence of any dependent children studying in another city.

How is the amount of family expenses shared between spouses or civil union parties?

The amount of expenditure is declared individually by each spouse or by each civil union party. If the required amount of expenditure is covered by any one of them, any excess amount may be transferred, following clearance, to the other spouse or civil union party to cover the required minimum amount of expenditure.

As regards joint tax returns, when one of the spouses or parties of a cohabitation agreement falls under a category for which they make payments by electronic means, even though this is not required, then, when tax is calculated, the declared amount of their expenses may be transferred to the other spouse or to the other party of the cohabitation agreement in order to cover the minimum required amount of expenses.

Reduce Your Tax

• Taxpayers who, until the end of the respective tax year, have reached their seventieth (70th) year of age..
• Individuals with an invalidity rate of 80% and over.
• Persons who have been placed into guardianship.
• Taxpayers residing abroad, who are required to file a tax return in Greece.
• Public servants and public employees serving abroad, as well as tax residents in Greece, who live or work abroad. 'Foreign country' means both Member States of the European Union or the EEA, as well as third countries (e.g. USA).
• Minors who are required to submit a tax declaration and are taxed according to the scale regarding paid employment and pensions.
• Persons doing their military service.
• Taxpayers permanently residing in villages with up to 500 inhabitants and on islands with less than 3,100 inhabitants, according to the latest census, except for tourist locations.
• Taxpayers who are beneficiaries of the Social Solidarity Income (KEA).
• Persons who have been hospitalized for a long time (6 months or more).
• Persons staying in retirement homes, psychiatric institutions and prisoners.

If the minimum amount of expenditure attributable to taxable income is not covered, the relevant difference will be taxed at 22%. The increase will be calculated on the amount resulting from the difference between the amount required and the amount declared.

Α table with relevant examples follows:

• Group 1 (Food and non-alcoholic beverages).
• Group 2 (Alcoholic beverages and tobacco).
• Group 3 (Clothing and footwear).
• Group 4 (Housing), excluding rents.
• Group 5 (Durable goods, household items and services).
• Group 6 (Health Care).
• Group 7 (Transport), excluding vehicle road and vehicle purchase tax, apart from bicycles.
• Group 8 (Communications).
• Group 9 (Leisure, cultural activities).
• Group 10 (Education).
• Group 11 (Hotels, cafes, restaurants).
• Group 12 (Other goods and services).

• Rent
• Payment of taxes
• Road tax
• House purchase
• Purchase of vehicles, boats, airplanes and aircrafts
• Loan instalments
• Purchase of investment shares
• Expenditure paid by using cards issued abroad

Transactions of a total value of 500€ or more for goods or services must be carried out exclusively by card or other electronic payment means, including, but not limited to bank transfers, payments through a payment account,e-wallet, etc. as well as the payment of cash to Payment Services Providers of n.4537/2018 (at the counter or at easy-pay machines).

The amount of special solidarity levy of Article 43 A of Law 4172/2013, as it results upon the issue of the act of administrative tax allocation of the respective tax year, and the amount of maintenance paid by the taxpayer to their divorced spouse or to a party of a partnership agreement and/or to a dependent child thereof, if paid by means of electronic payment, are not included in the calculation of real income. In addition, the income resulting from the added balance of presumptions of par. 1 of Article 34 of Law 4172/2013 does not fall within the meaning of real income.

For the taxpayer whose one or more accounts are seized, except for the account exempt from seizure of Law 4254/2014 (A’ 85), at any time until the 31st of December of the respective tax year, the limit of expenditure that has to be paid by using means of electronic payment within the tax year is limited to five thousand (5,000) Euros.

Furthermore, in the case where the expenditure, which has been made within the respective tax year and concerns payments of income tax of natural persons and Unified Property Ownership Tax (ENFIA), regardless of the time of affirmation thereof, personal or professional loan obligations to financial institutions (in Greece or abroad) and rents, exceeds sixty percent (60%) of the real income, as it is determined by this article, then the required amount of expenditure is limited to twenty percent (20%), under the condition that the above expenditure has been paid by means of electronic payment.

For example, any transactions for the purchase of goods and the provision of services which were performed in Greece, by debiting the taxpayer’s bank account and crediting a business or self-employed professional account, which was not however registered in the AADE special application. Moreover, any transactions which were performed with businesses in the European Union (e.g. payment of university tuition fees).

The electronic payment instruments provided by Piraeus Bank and used for tax deduction purposes are:

• Web Banking: Piraeus e-banking, Piraeus app and Piraeus phone banking
• Transactions via credit, debit, prepaid cards, either via POSs at business premises or through the internet (e-commerce).
• easypay e-payment services (portal, apps).