Capital Control and VAT changes in Greece

Our Managing Director in Athens provides a summary of Greek capital control and VAT changes over recent weeks.

You may have seen the news posted last week about the abolishment of reduced VAT rates on six popular holiday islands. From 1 October 2015, the Greek mainland VAT rates of 6%, 13% and 23% have applied on the islands of Rhodes, Santorini, Mykonos, Naxos, Paros and Skiathos.

Businesses based on the above islands must adjust their prices and update their software and devices. These changes also impact the filing of VAT returns.

Capital Controls

Following is a summary of what is allowed under the current capital control measures.

  • The opening of a bank account for all new established companies and professionals (with a date of incorporation after 1 May 2015) is allowed.
  • The opening of one single bank account (not for cash withdrawal) is allowed for servicing any loan taken before or after the end of the bank holiday (caused by capital controls) by the financial institution in which the loan has been opened.
  • The use of credit or debit cards is allowed for buying goods and services abroad. Buying goods from abroad is allowed in general however there are some exceptions (eg. clothing market, online betting).
  • The early loan payoff is exceptionally allowed (partial or total) with cash, remittances from abroad and with a new loan for the purpose of restructuring.
  •  The early ending of time deposits is exceptionally allowed for the payment of hospitalization and tuition, payroll, overdue debts to the banks, and Greek public and social security departments.

If you would like clarification on any of this information please get in touch with our expert team in Greece.

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Yannis Goussiakis
Yannis  Goussiakis
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