Greece clarifies tax rules for personal money transfers

New clarifications have been issued regarding the tax treatment of money transfers between individuals in Greece. The assessment of these transfers depends on the actual reason for the transfer rather than the payment method used.

Funds sent from parents to children for daily needs, student expenses, or small personal amounts are not automatically classified as donations. However, significant amounts intended for wealth accumulation, such as purchasing a vehicle, land, or a home, require a donation declaration via the myProperty platform. For first-degree relatives, such as parents, children, or grandparents and grandchildren, there is a tax-free limit of up to 800,000 euros, provided the transfer is made through the banking system.

Taxation varies by relationship; for example, donations between siblings are taxed from the first euro, while transfers to friends carry a higher tax burden. Professionals using systems like IRIS must ensure that any professional income is accompanied by necessary documentation and recorded for VAT and tax purposes, though simple reimbursements between friends are not considered professional income.