AADE tax clarifications on money transfers

The Independent Authority for Public Revenue (AADE) has issued several clarifications regarding the taxation of money transfers in Greece.

Initially, the AADE addressed the status of same-day returned transfers. Following a decision by the Dispute Resolution Directorate (DED) No 1544/2026, the authority confirmed that a transfer of €51,801 returned to the sender on the same day is still classified as a taxable donation. The authority noted that the act of delivering money creates the donation, making the tax due regardless of any subsequent reversal.

Subsequently, the AADE provided guidance on transfers between relatives and close associates to address social media discussions. The authority stated that small transfers, such as pocket money from parents or grandparents to children, are generally not of tax interest unless they show patterns of abusive practice. In one specific case involving a student in Euboea, the AADE clarified that a tax levy applied to a donation made before certain exemptions were implemented, noting that voluntary declarations cannot be revoked retroactively through administrative appeals.

Further guidance clarified that for first-degree relatives, donations and parental provisions are tax-exempt up to a limit of €800,000, provided transfers are made through the banking system and appropriate electronic declarations are submitted via myPROPERTY. Amounts exceeding this threshold are subject to a 10% tax. The authority also warned against mislabeling transactions; incorrectly marking a transfer as a ‘donation’ or ‘loan’ can trigger automatic taxation of up to 40%. Additionally, IRIS payments made to self-employed professionals are treated as business income and are subject to standard taxation.