Information on the collection of expenditure for income tax

For the tax free calculation, especially for the years 2022-2025, the following have been implemented:

1. Medical expenses: The expenses paid by electronic means concerning medical, dental, ophthalmological and other medical and paramedical services shall be calculated twice their value for the coverage of the required amount of expenses. In the bank’s calculation, this doubling has not been made.


2. Expenses for the reduction of the taxable income: A new group of expenses is created, concerning sub-categories of the expenses for housing, services, transport, recreation & cultural activities, education and other services, which reduces the natural person’s taxable income from paid employment and pensions, business activity and immovable property, by 30% of the total said expenses up to five thousand euros (€5,000) annually.
The expenses for the reduction of the taxable income concern solely the taxpayer and any excess amount cannot be used by the other spouse or member of a civil partnership.
Especially for the expenses concerning the services of house repair and maintenance, the provisions of this article do not apply, if the natural person has benefited, within the same financial year, from the provisions of article 39B of Law 4172/2013.

Important note: The information on this page is for informational purposes only. For further details, consult your tax advisor.

For those engaged in business activity, the expenses incurred from their business bank account are taken into account in the collection of expenses in the Personal income tax return if they relate to their personal - private expenses and not to their business activity.

It should be clarified that the bank does not send information on these expenditures to the AADE, as the business accounts reflect the expenses incurred by the traders for their business activity. Any expenses incurred from the business account that relate to individual-private expenses are reported to the Personal income tax return by the taxpayer himself.

Important note: The information on this page is for informational purposes only. For further details, consult your tax advisor.

Yes, the respective fields in the Income Tax Declaration will be “open” in order for the taxpayer to declare any additional expenditure.

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).

Important note: The information on this page is for informational purposes only. For further details, consult your tax advisor.

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.

Important note: The information on this page is for informational purposes only. For further details, consult your tax advisor.

For the evidence of payment of such expenditure by means of electronic payment, any appropriate proof is accepted, such as, indicatively, bank statement or statement of account, detailed statement of cards, deposit or payment slips, copy of print of the transaction carried out through the terminal (POS), etc., without the collection of receipts being required.

Important note: The information on this page is for informational purposes only. For further details, consult your tax advisor.

The bank is unable to detect that. Consequently, all data which shall be sent from the bank to the AADE will indicate the natural person associated with the electronic payment means as the beneficiary on the collection of expenses. In any case, the taxpayer may invoke said expenditure for income tax purposes, provided that the taxpayer may evidence said payment by an electronic means of payment.

Important note: The information on this page is for informational purposes only. For further details, consult your tax advisor.

It's related to income from employment, pensions and business activity.

Important note: The information on this page is for informational purposes only. For further details, consult your tax advisor.

Expenses taken into consideration through electronic means of payment shall be included in the following ELSTAT (Hellenic Statistical Authority) consumer price index groups.

• 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)

Expenses not eligible for tax reduction are as follows:

• 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.

Important note: The information on this page is for informational purposes only. For further details, consult your tax advisor.

• 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.

Important note: The information on this page is for informational purposes only. For further details, consult your tax advisor.

It is possible that one or several transactions might be missing, especially if they are payments made to accounts which have not been registered by the beneficiary as professional in the special AADE application. The procedure suggested is:

• contact your accountant in order to confirm that the missing transaction was actually made to the corresponding beneficiary of the payment who should have registered the respective account in the application
• appropriately correct the field according to the bank data

It shall be noted that banks cannot intervene in the data and therefore cannot take corrective action.

Important note: The information on this page is for informational purposes only. For further details, consult your tax advisor.

On the collection of expenses through electronic means of payment are counted all transaction:

• cards and means of payment by card
• the 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.
• 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:

In the calculation of real income are not included:

• 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
• 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
• 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

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.

Important note: The information on this page is for informational purposes only. For further details, consult your tax advisor.

Yes. Banks will send to the AADE the expenditure that their customers, who are natural persons, have repaid by electronic means of payment for tax year.

More specifically, banks will send:

• All transactions via credit, debit and prepaid cards, excluding prepaid cards which have been credited with the Social Solidarity Income (KEA), for the purchase of goods and the provision of services which were performed to professional accounts in Greece and the European Union. In case of credit cards, if the transaction was made in instalments, the date of clearance of the amount of each instalment shall be taken into account.
• All transactions for the purchase of goods and the provision of services performed in Greece by debiting their bank account and crediting their business or self-employed professional account, provided that said account has been registered by the business or self-employed professional in the specific AADE application, which is available at: https://www.aade.gr/epicheireseis/phorologikes-yperesies/epaggelmatikos-logariasmos

According to the current legislation, all businesses and self-employed professionals are required to register all of their business accounts.

Specifically regarding bank account payments, the data to be sent will be calculated based on all business accounts which have been registered in the respective AADE application and will retroactively refer to all transactions for tax year, if the beneficiary has stated in the AADE application that said business account shall apply throughout for tax year.

Tax deduction (also known as 'building tax exemption') can be achieved through electronic transactions with companies or freelancers who have registered their business account(s) with the Independent Authority for Public Revenue (IAPR), in accordance with the applicable legislation. If a company or freelancer has not registered their business account(s) with IAPR, any transactions as regards the purchase of goods and services rendered in Greece, by debiting one's bank account and crediting the company's or freelancer's business account shall not be included in the information sent by the banks to IAPR. However, these transactions may be included in your tax-deductible amount if you declare them, on your own accord, in the relevant fields of the tax return form (for more details please see the answer to question 10). The same applies to any transactions as regards the purchase of goods and services rendered by using bank checks or by paying in cash to Payment Services Providers under Law 4537/2018 (at the counter or an easy-pay terminal) since banks are not aware, in these cases, of the payer's/tax reduction beneficiary's TIN.

Important note: The information on this page is for informational purposes only. For further details, consult your tax advisor.

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:

Important note: The information on this page is for informational purposes only. For further details, consult your tax advisor.

Transactions made by card or other electronic payment means for the purchase of goods or services are considered eligible for a public lottery program, the winners of which are rewarded with cash or other prizes.

Moreover, taxpayers are exempt from the process of collecting receipts, since Bank statements are sufficient to prove any transactions made.

Is the payment of my premiums through an “insurance agent” of my insurance company included in the other expenses paid through electronic means of payment?

The payment of insurance premiums through a business account or by card are included in the collection of expenses through electronic means of payment. If the payment is carried out through an insurance agent who does not have a declared business account, then it is not included in the collection of expenses through electronic means of payment.

Important note: The information on this page is for informational purposes only. For further details, consult your tax advisor.