New guidelines for the implementation of the Digital Tax, which replaced the stamp duty from December 1, 2024, are provided by the Independent Authority for Public Revenue (AADE) in its circular. The circular clearly defines which transactions are subject to the tax and at what rates, as well as the tax obligations arising for taxpayers, businesses and the Public sector.
Digital Tax: Changes for rentals, loans and banking transactions
Among these are property rentals used for professional activities, loans between individuals or businesses, bank checks, as well as other contracts of an economic nature. Specialized rules apply particularly to real estate and banking transactions regarding the amount of the tax, the method of payment and the timing of payment.
In detail:
Real estate
1. Professional rentals without the option of VAT coverage are subject to a rate of 3.60% on rent, provided the property is located in Greece. The obligated party is usually the lessor, through income declaration, with special regulations when contracting with the Public sector or General Government. Residences are not covered (nor storage, parking spaces when rented together with residence). If part of a residence is used professionally, the tax is imposed proportionally. In case of subletting a residence, the original lease is examined independently. No tax is imposed on residential rentals or on storage or parking spaces when rented together with the residence. The exemption also applies when a company rents a residence for employee accommodation. Individual rental of storage or parking by a private individual is not covered. The obligated party declares the rent in the income tax return for payment certification; any tax credit is offset against the tax, accordingly.
2. Digital Tax is not imposed on real estate transfers, because these transactions are subject to other taxes such as the Real Estate Transfer Tax. Coverage under these excludes the Digital Tax.
3. Transactions at mortgage registry-land registry offices. In the case of registration of leases over 9 years, a fixed tax with a rate of 1.20% is imposed on the total rents of the contract, one-time through a notary. For mortgage registration or conversion of preliminary registration to mortgage (based on law or court decision), digital tax is imposed at a rate of 3.60%, regardless of the origin of the debt. The person requesting the transaction is obligated to pay, with e-Payment voucher. No tax is imposed on mortgages to secure certified debts to the Tax Administration or social security funds, mortgages in favor of National Lottery agents for ticket prices, mortgages/conversions to secure loans from financial institutions or bond loans.
Banking transactions
1. Digital Transaction Tax is imposed with a limit of €150,000 per loan:
(a) loans, interest-bearing or interest-free, (b) credits equivalent to loans and credit cards, and (c) conversions of unpaid debts to new loans when the original was not covered or was legally exempt. Capitalized contractual interest is considered new capital and is covered. Forms of credit (leasing, factoring, derivatives, repos, securities lending, credit sales) that fall under VAT/RET are not covered. Loans and credits are exempt when a supervised financial institution is involved, bond loans from foreign banks, loans with payment to permanent establishments abroad connected to their activity, and financing through the Hellenic Development Bank. Modifications of terms without capital increase or change of contracting parties are not covered.
For loans between natural persons engaged in business activity, provided that the lending is exclusively for purposes related to their business activity, digital tax is imposed at a rate of 2.40%. For loans with at least one of the contracting parties being a corporation or partnership established domestically or abroad, a tax of 2.40% is imposed. For loans with the Public sector or general government body with corporations or partnerships established domestically or abroad, also 2.40%. Also for loans between private individuals 3.60%, loans between NPLEs or between the Public sector and NPLEs 3.60%, loans of private individuals with NPLEs 3.60%, loans of civil non-profit organizations with private individuals or with other civil non-profit organizations 3.60%, loans between natural persons engaged in business activity where the lending is not related to their business activity 3.60%.
2. Deposits-Withdrawals
Digital Transaction Tax is imposed on deposits and withdrawals made from and to legal entities, legal entities when movements are made by partners, shareholders or other persons, outside the framework of special contracts and not as withdrawals against profits within the management period. Transactions must be evidenced only by accounting entry or equivalent document. If during the tax year withdrawals by shareholders and partners exceed proportional profits, the difference is subject to tax, which is paid by the end of the next month from the approval of the General Assembly. Deposits for future capital increases are excluded, provided the amounts are not used for other purposes. No tax is imposed on deposits or withdrawals from financial institutions and foreign banks. A rate of 1.20% is imposed when the legal entity is a corporation or partnership (domestic or foreign).
3. Loan and current accounts.
Digital Tax is imposed on loan current mutual credit accounts. Accounts are not covered when one party is a credit institution or foreign bank. The tax is calculated per tax year on the largest debit or credit balance of the year, without carried forward balance from previous year and without interest. A rate of 2.40% is provided when all parties are entrepreneurs and the account serves exclusively their activity or when one party is a company. In any other case, a rate of 3.60% is imposed.
4. Bank checks.
Tax is imposed on registers where checks are mandatorily recorded, which are presented to credit institutions established in Greece for collection, pledge or custody, at a rate of 3‰ and is calculated on the total value of checks listed in the relevant register. The check bearer is subject to the tax, while the credit institution is obligated to submit the declaration and pay the tax.
