Where Do I Pay Taxes If I Live in Greece But Get Paid in Germany?

Question from Max, Where Do I Pay Taxes If I Live in Greece But Get Paid in Germany?

Answer from AI:

If you live in Greece but receive income from Germany, you may wonder where you are required to pay taxes. The answer to this question can be complex and depends on various factors, including your residency status, the nature of your income, and the tax treaties between the two countries.

Understanding Tax Residency

Typically, you are taxed based on your tax residency. In general, if you live in Greece for more than 183 days in a year, you are considered a tax resident of Greece. As a tax resident, you are usually required to pay taxes on your worldwide income in Greece. However, if you also have income from Germany, the situation can become more complicated due to the tax treaty between Greece and Germany.

The Greece-Germany Tax Treaty

Greece and Germany have a bilateral tax treaty to avoid double taxation and prevent fiscal evasion. According to this treaty, certain types of income may be taxed in the country where they are sourced. For example, if you are employed by a German company and perform your work in Germany, your employment income may be taxed in Germany.

However, the treaty also provides for relief from double taxation. This means that if you pay tax on your German income in Germany, you may be entitled to a credit for that tax in Greece.

Seeking Professional Advice

The rules surrounding international taxation can be complex and vary depending on individual circumstances. Therefore, it is strongly recommended that you consult with a tax professional or legal advisor who is familiar with the tax laws of both Greece and Germany. They can provide personalized advice based on your specific situation.

Here are some general steps you might take:

1. Understand your tax residency status in both Greece and Germany.
2. Review the tax treaty between Greece and Germany to understand where your income may be taxed.
3. Consult with a tax professional or legal advisor.

For more information, you can refer to the OECD’s list of tax treaties and the Greece-Germany tax treaty (in Greek).

Please note: This information is intended to provide a general understanding of the tax implications of living in one country and receiving income from another. It is not intended to provide specific advice. Always consult with a tax professional or legal advisor for advice tailored to your specific circumstances.