Enter the gross dividend amount to calculate the 5% withholding tax deducted at source in Greece and the net amount you receive.
Withholding tax (5%)
--
Net dividend received
--
Your breakdown
Updates live as you type
Item
Amount
How Greek dividend withholding tax works: 5% flat rate since 2020
When a Greek company distributes dividends to its shareholders, it is legally obligated to deduct 5% of the gross dividend amount at source and pay it directly to the Greek tax authority, AADE. This mechanism is called withholding tax (parakratisi forou). The shareholder receives the net amount after the deduction. For individual shareholders who are Greek tax residents, the 5% withholding is the final tax on dividend income, and no further income tax applies unless the shareholder elects to aggregate the dividend with other income for the progressive scale. The flat 5% rate applies to dividends from both quoted and unquoted Greek companies, including distributions from private limited companies (EPE) and anonymous companies (AE). It does not apply to interest income or rental income, which are taxed at different rates under the Income Tax Code.
Corporate tax and dividend: understanding the combined tax burden
Greek companies pay corporate income tax at a flat rate of 22% on their taxable profits before any distribution. After paying corporate tax, the remaining after-tax profit can be distributed to shareholders as dividends. When dividends are distributed, the additional 5% withholding applies to the gross dividend. This means the combined effective tax rate on corporate profit that is eventually distributed as dividends is approximately 25.9%. For example, a pre-tax profit of 100,000 euros generates a corporate tax liability of 22,000 euros, leaving 78,000 euros available for distribution. If the full 78,000 euros is distributed as dividends, the withholding tax is 3,900 euros (5% of 78,000), and the shareholder receives 74,100 euros net. Understanding this cascade helps business owners model the most tax-efficient approach to profit extraction.
Dividend income and the Greek income tax return: final vs. aggregated
For Greek resident individuals, the 5% withholding on dividends is normally treated as a final tax. This means the dividend income does not need to be declared separately in the annual income tax return (E1 form) and is not added to employment or business income for the progressive tax scale. However, taxpayers may elect to aggregate dividend income with their other income and apply the progressive rate scale (9% to 44%), in which case the withheld 5% becomes a tax credit that offsets the higher liability. This election is generally disadvantageous for most taxpayers, as the progressive rates exceed 5% for virtually all income levels. The practical implication is that dividends from Greek companies are lightly taxed relative to salary income, which also carries EFKA social contributions of around 13.87% plus progressive income tax.
Legal basis and official sources for the 5% dividend rate
The 5% dividend withholding rate is established in Article 40A of the Greek Income Tax Code (Kodikos Forologias Eisodimatos), Law 4172/2013, as inserted and amended by Law 4646/2019. The Greek tax authority, Independant Authority for Public Revenue (AADE), publishes guidance and circulars on dividend taxation at aade.gr and taxisnet.gr. Companies distributing dividends must file the relevant withholding declaration with AADE and remit the tax within the statutory deadline. Shareholders can verify the withheld amount through their personal tax account on taxisnet.gr. The rates and thresholds presented in this calculator reflect the rules in force for the 2025 tax year and are provided for informational purposes only. They do not constitute tax advice. Consult a licensed Greek tax adviser (forologikos symvulos) for guidance on your specific situation, particularly if you are a non-resident or have cross-border shareholdings.
Frequently asked questions
What is the dividend withholding tax rate in Greece in 2025?
In Greece, dividends distributed by Greek companies to individual shareholders are subject to a flat withholding tax of 5% at source. This rate applies to the gross dividend amount before any other deductions. The company distributing the dividend is required to withhold the tax and remit it directly to the Greek tax authority, AADE, on behalf of the shareholder. The 5% rate is final, meaning the recipient does not need to include dividend income in their annual personal income tax return unless they elect to aggregate it with other income for the purpose of applying the progressive income tax scale. For most individual investors, the flat 5% rate represents the total Greek tax liability on dividend income, making Greece one of the more competitive environments within the European Union for dividend taxation. The rate has been stable since 2020 and is set out in Article 40A of the Greek Income Tax Code, Law 4172/2013, as amended by Law 4646/2019.
When did Greece reduce its dividend tax rate to 5%?
Greece reduced the dividend withholding tax rate from 10% to 5% through Law 4646/2019, which was enacted in December 2019 and became effective from tax year 2020 onwards. Before 2020, dividends were taxed at 10% at source. This reduction was part of a broader tax reform package introduced by the government to attract investment, improve the business climate, and encourage profit distribution from Greek corporations. The cut effectively halved the tax burden on shareholders receiving dividends from Greek companies. The reform aligned Greece more closely with other competitive EU member states and was designed to reduce the incentive for profit retention rather than distribution. Since the 5% rate came into force, it has remained unchanged through subsequent budget cycles, including 2021, 2022, 2023, 2024, and 2025, providing stability and predictability for investors and business owners planning their corporate structures and distribution strategies.
How does Greece double-tax treaty network protect dividend recipients?
Greece has signed double taxation treaties (DTTs) with more than 50 countries, including all major EU member states, the United States, Canada, the United Kingdom, and many others. These treaties generally limit the withholding tax that Greece may impose on dividends paid to non-residents, often setting reduced rates of 5%, 10%, or 15% depending on the treaty and the ownership percentage. For qualifying parent companies holding a significant stake (typically 25% or more), many treaties reduce the dividend withholding to 5% or even 0%. Non-resident individual investors should review the applicable treaty to determine whether a reduced rate applies in their case and whether a refund claim or pre-approval procedure is required. In practice, domestic shareholders resident in Greece are subject to the standard 5% final withholding and do not need to invoke treaty protection. Non-residents should engage a Greek tax adviser to confirm the applicable treaty rate, the procedural requirements for claiming it, and any conditions such as minimum holding periods or beneficial ownership tests that may apply under the relevant treaty or under general anti-abuse provisions of Greek law.
Is it more tax-efficient to pay a salary or dividends from a Greek company?
The choice between salary and dividends in Greece involves a careful trade-off between income tax, social contributions, and corporate tax. Salaries paid by a Greek company are deductible from corporate profits, so the company reduces its 22% corporate income tax base. However, salaries are subject to progressive income tax at rates of 9% to 44% and EFKA social contributions of roughly 13.87% for the employee, making high salaries expensive. Dividends, by contrast, are paid from after-tax profits that have already borne the 22% corporate tax, and then face the additional 5% withholding at the shareholder level. The combined effective tax on corporate profit distributed as dividends is approximately 25.9% (22% corporate tax on the profit, then 5% on the remaining 78%). For a shareholder drawing a modest salary, topping up with dividends may be more efficient than a large salary subject to the 44% top marginal rate. The optimal split depends on personal income levels, EFKA caps, the size of the company profit, and whether the shareholder has other income sources. A Greek tax adviser or accountant should model the specific scenario annually, as changes in EFKA caps and income tax credits can shift the optimal balance from year to year.