To accelerate the transfer process, but without affecting the interests of the Public sector, the Independent Authority of Public Revenue (AADE) proceeds to the abolishment of the requirement for a tax clearance certificate for specific acts and transactions. The new decision stipulates that the submission of a tax clearance certificate is no longer required in the following cases:
- For the distribution or exchange of joint property.
- For the establishment of a horizontal or vertical ownership or for the modification of such without compensation from the debtor who will acquire the real right on a property of an equal or greater value than the real right that he/she had, as defined for the imposition of the property transfer tax.
Already, based on the regime in effect, the submission of a tax clearance certificate is not required for the following acts and transactions:
- For the Greek public sector, the public sector of other countries, international organizations, local self-administration organizations, Public Law Legal Persons, as well as institutions established pursuant to Law 2039/1939 (Α’ 455) and constituted pursuant to the provisions of the Code for properties bequeathed or donated to the State – properties of unknown owners.
- By the insolvency administrator of a natural or legal person for acts or transactions pertaining to the bankrupt property, the liquidator of a company for acts of liquidation, escheat trustees when his actions are proven to concern the liquidation of the escheat property, as well as the estate trustee for acts or transactions pertaining to the inheritance.
- For people who permanently reside abroad, foreigners or expatriates who were born abroad and retain the Greek nationality provided that they have no income in Greece.
- For people who collect fees or receive a fixed remuneration from the provision of dependent work, pensions, alimony, business expenses of public servants, hospitalization and funeral expenses, provided that the amount is paid directly to the beneficiary salaried employee, pensioner or to his/her family or an authorized person.
- For beneficiaries of insurance compensations and tort compensations decided by a court judgment.
- For the establishment of a real right of the State.
- For beneficiaries of unseizable monetary claims, according to the provisions of the law in effect, as determined by the service proceeding to the assessment.
When is the tax clearance certificate compulsory?
- For the collection of money or the settlement of a payment title from the Public Sector, as determined in the laws in effect, by public accounting officers and by people proceeding to payments on order or authorization of the above, provided the gross amount for each payment title exceeds 1,500 Euro per beneficiary. The tax clearance certificate is given by the collecting officer to the person making the payment or settlement of the title, at the time of payment or settlement of such title. Payment titles which are paid with an amount under 1,500 Euro are offset with any debts of the beneficiaries.
- For the conclusion and renewal of loan, credit and financing contracts with banks and other financial institutions which are accepted in Greece, provided they are granted by guarantee of the Greek State, except the ones granted for the restoration of damages caused by extraordinary incidents. The tax clearance certificate is given by the counterparty to the Bank or Financial Institution at the time of the conclusion or renewal of the contract and at the time of its execution by the collector.
- For the transfer of property against monetary consideration, by parental grant, donation or via a voluntary auction, as well as for the voluntary establishment of real rights on property, the distribution of co-owned properties, the voluntary exchange of properties and the establishment of a horizontal property, provided that in the last case, the contract is drafted between the co-owners of the property and/or third parties, irrespective of the fact that it may still be under the condition precedent of the building. The tax clearance certificate is given, respectively, by the person transferring the property or the donor of the parental grant or donation, the person providing the real right, the co-owners and/or the buyer on behalf of the seller in the case of self-contract, to the notary drafting the relevant deed, who is obliged to mention in the text of the deed the service issuing the certificate, its number and date.
- For the participation in a tender to undertake the execution of public projects or the provision of services or supplies to the Public Sector, as determined in the laws in effect. The tax clearance certificate is given by the person making the bid to the service to which the bid is submitted.
- For the payment of any ceded claims against the institutions of case a of this article. The tax clearance certificate is provided to the person making the payment or settlement, both by the grantor or debtor and the grantee or creditor. The issuance of the tax clearance certificate of the grantor or debtor is requested by the grantee or the creditor. If it cannot be issued due to the existence of debts, the collected money is given to the State up to the amount needed to cover the debts pending at the time of payment.
- For any other act, transaction or action for which a tax clearance certificate is required by the provisions in effect at that time.