Double Tax Agreement with Greece
Double Tax Agreement with Greece: All You Need to Know
Greece is a popular travel destination for many, but what do you know about the country`s tax laws? In order to avoid double taxation on income earned in Greece, many countries have signed a double tax agreement with Greece. In this article, we`ll dive deeper into the double tax agreement with Greece and what it means for individuals and businesses.
What is a Double Tax Agreement (DTA)?
A Double Tax Agreement (DTA), also known as a tax treaty, is an agreement between two countries that aims to prevent double taxation of income earned in both countries. Double taxation can occur when a person or business is taxed on their income in both their home country and the country where the income was earned. This can lead to a heavier tax burden and discourage cross-border investment and trade.
What is the Double Tax Agreement with Greece?
Greece has signed a double tax agreement with over 60 countries, including the United States, the United Kingdom, Canada, and Australia. The agreement outlines how income will be taxed in each country and provides relief from double taxation for individuals and businesses.
The double tax agreement with Greece typically follows the Organization for Economic Co-operation and Development (OECD) Model Tax Convention. This means that the agreement includes provisions for the taxation of business profits, dividends, interest, royalties, and capital gains.
How does the Double Tax Agreement with Greece benefit individuals and businesses?
For individuals who earn income in both Greece and their home country, the double tax agreement provides relief from double taxation. This means that they will only be taxed on their income in one country, either Greece or their home country, depending on the specific provisions of the agreement. This can result in a lower tax burden and encourage cross-border investment and trade.
For businesses, the double tax agreement can help to reduce tax costs and avoid double taxation on business profits, dividends, interest, royalties, and capital gains. This can make it easier for businesses to expand into new markets and increase cross-border trade and investment.
Conclusion
The double tax agreement with Greece is an important agreement for individuals and businesses who earn income in Greece and their home country. By preventing double taxation and providing relief from tax burdens, the agreement encourages cross-border investment and trade. If you earn income in Greece or are considering expanding your business into Greece, it`s important to understand the provisions of the double tax agreement with Greece. Consult with a tax professional for further details and guidance.
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