Greece tax authorities monitor IRIS money transfers

The Independent Authority for Public Revenue (AADE) is increasing scrutiny of money transfers made via the IRIS instant payment system. Tax experts warn that while IRIS is convenient for daily transactions, users must provide clear justifications for transfers to avoid being flagged for undeclared income or undocumented donations.

For first-degree relatives, such as spouses, children, and grandparents, there is a tax-free threshold of €800,000 for donations or parental provisions made through the banking system. However, transfers intended for wealth accumulation—such as purchasing real estate, vehicles, or making investments—may require formal declaration via the myProperty platform. If such transfers are made in cash rather than through banking institutions, a 10% tax applies from the first euro.

Specific rules apply to parental support for minors and students up to age 25. For routine living expenses like rent, tuition, and books, there is no specific monetary limit and no requirement for a donation declaration, provided the purpose is clearly stated.

Tax rates for other relationships are higher: second-degree relatives, such as siblings, face a 20% tax rate from the first euro, while transfers between friends or non-relatives can be taxed at 40%. Experts emphasize that users should avoid vague or humorous descriptions in transaction notes to ensure proper documentation during potential audits.