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     February, 2013
oCar Taxation of those residing Abroad 

Since 01.01.2011, according to article 18 of the Income Tax Code, as applied, the provisions regarding the costs of living and for acquiring assets shall not apply to any natural person having his tax residency abroad, provided he has no income in Greece. 

     Therefore, if they have no income in Greece will not be taxed for any imputed income arising on assets, as a private car, they may have at their disposal.

     On the other side, if these have income from any cause whatsoever, such as from rents, an imputed income will be calculated, according to the provisions of article 16 of the Income Tax Code and they will be taxed for the higher income between arising, i.e. the real or the imputed.

oNew law provision for the aggregate Bank Deposits

According to a draft of law of the Ministry of Finance, which is already discussed in public but not yet voted, if a bank account is aggregate for over 20 years, the State will have the right to use the deposited amount for the specific purposes of supporting vulnerable social groups in health and education issues.

Each Bank must send notices to the beneficiaries of aggregate accounts after 5, 10 and 15 years, while after the third notice, a special file must be created, which will be finalized after the lapse of 20 years. The crediting of these accounts with Interests and their capitalization are not considered to be transactions.

After the expiry of 20 years, each Bank is required to deliver to the Bank of Greece by the end of April of each year a list with the balance of these aggregate accounts plus the accrued interests.

The Minister of Finance will report annually to the Parliament on the amount and allocation of these funds.

It should be noted that the European Court of Human Rights has condemned Greece for violating the right to protection of property, judging the action of the son of the deceased Anastasios Zolotas, with which he argued that the Greek authorities were wrong to seize the amount of 30.550,00 euros, which were in a dormant bank account of his father, due to the lapse of 20 years. 
oYachts’ Taxation – Establishing of sailing and recreation tax

In the immediate future the Greek Parliament is going to vote a new provision regarding the establishment of a new yacht tax called “Duty of Sailing and Sojourn”. At the same time they will abolish the luxury and special tax which has caused  among other things, the ceasing of the importation of yachts in Greece, since the import costs had been prohibitive (23% VAT + 10% luxury tax on the value of the vessel), while even planned imports had been cancelled.
This new tax will only concern the sail and recreational private vessels, regardless their flag.
The said “Duty of Sailing and Sojourn” for yachts is expected to cause their return to Greek seas and marinas, which will stipulate the economy of the islands and coastal areas and create thousands of new jobs.
The current tax regime for yachts is governed by law 3790/2009, concerning the special tax for yachts, as modified by law 3842/2010, whereby:
a)A special annual and indivisible tax is levied on all private recreational vessels, which are in Greek territory, are registered in Greek or foreign registry and are equipped with a Recreational Vessel Traffic Bulletin or a Yacht Traffic Bulletin or any equivalent document. This special tax is levied on private recreational vessels only if they remain in Greek territory for a total period of more than 60 days during each calendar year.
b)The said special tax is levied on yachts exceeding 10 meters and sailboats exceeding 15 meters. 
c)Yachts of less than 10 meters length and sailboats not exceeding 15 meters pay a special registration fee of 1,00 euro.
d)Liable for paying this special tax is the owner of the vessel, natural or legal person, while jointly liable is considered to be its holder or user.
e)Also a special annual payment (luxury tax) is anticipated for owners or possessors of private recreational vessels. Especially for year 2013 this tax shall not apply. 

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