GREECE Law and Practice Contributed by: Fotodotis Malamas, Bernitsas
10. Charitable Planning 10.1 Charitable Giving
of money by corporations or individuals is subject to tax, which is calculated at a rate of 0.5%. The acquisi - tion through inheritance of other assets by such indi - viduals or corporations is subject to a tax calculated independently at a rate of 0.5%”. The amount of the resulting tax also includes 3% in favour of municipalities and communities. All gifts/donations of money in favour of corporations are subject to an independent tax of 0.5%, with an annual tax-free threshold of EUR1,000. 10.2 Common Charitable Structures The Civil Code regulates the establishment, operation and dissolution of civil law companies (CLCs). A minimum of two partners are required for the establishment of a not-for-profit civil law company (NPCLC), which is managed by its partners (who have joint and unlimited liability) and may appoint one or more managers. A general meeting of the partners is the supreme governing body of an NPCLC and may decide on all issues relating to its operation. An NPCLC is not permitted to distribute profits, divi - dends or liquidation proceeds to its members, and upon its dissolution any liquidation proceeds will be transferred to organisations with similar purposes in accordance with the provisions of its articles of asso - ciation or the decision of a general meeting. Liability of Partners The entry into force of Law 4072/2012 confirmed the provisions regarding the liability of the partners of a registered NPCLC, and clarified that they are held jointly and severally liable with the NPCLC for its tax liabilities. NPCLCs are subject to 22% income tax for any income received or gained. Partners’ contributions and subscription fees, dona - tions and aid received from enterprises and third parties are not included in the calculation of gross income. The same rules apply with regard to income from activities pursued within the framework of NGO activities.
In Greek tax law, as in other systems, there are spe - cial favourable provisions concerning the funding of charitable purposes systematically pursued by private or public institutions. Inheritance and Donation According to the Inheritance and Donation Code, the following gifts/donations are not subject to gift tax and do not need to be declared: • gifts/donations of money or other movable prop - erty, whether made anonymously or not, organised at a national level and proven to be charitable in nature; and • gifts/donations of any property to the church insti - tutions. Acquisitions Acquisitions by the following legal persons and enti - ties or individuals are also exempt from tax but not from the obligation to submit a declaration: • the Greek State or accounts created in favour of the Greek State; and • foreigners subject to the rule of reciprocity, on the condition that this tax exemption is provided for by international conventions – if the legislation of the foreign country does not provide for a full exemp - tion but for lighter taxation subject to the rule of reciprocity, the inheritance or trust subject to taxa - tion in Greece of a foreign national corporation or individual is subject to lighter taxation correspond - ing to the tax imposed by the foreign country in question. Transfers of Assets Free transfers of movable or immovable assets belonging to the State, municipalities or communities and public organisations are exempt from donation tax. By virtue of the Inheritance and Donation Code, an acquisition is also subject to independent taxation when the beneficiaries are specific legal entities. In accordance with Article 29, paragraph 5 of that Code: “[The acquisition through inheritance of sums
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