Greek tax rules tighten on parental benefit transfers, risking 20% tax

Greek tax authorities warn that errors in transferring parental benefits can strip the €800,000 exemption and trigger a 10% tax from the first euro. The tax office now examines who actually possessed the money, who could afford the transfer, who gave the transfer order and who the real donor was, even if the declaration lists a different person.

A recent dispute resolution decision involved a €26,000 donation reported as a gift from a daughter to her father. The daughter had no income to justify the amount, while her husband had sufficient earnings and had instructed the bank transfer from a joint account. The authority concluded the husband was the true donor, reclassifying the transaction as a gift from son‑in‑law to father‑in‑law, which is taxed at 20%. The family was assessed €5,200 in tax and a €2,600 penalty.