eKathimerini — The job income of thousands of Greeks who live and work abroad can only be taxed in the country where it is earned, and not in Greece, even if their home and family are in Greece, according to a crucial verdict issued by the Council of State, the country’s highest administrative court, a few days ago.
The decision has resolved some substantial problems regarding tax domicile and the thousands of Greek people working abroad in recent years, which have seen a considerable outflow of human resources due to the economic crisis. It follows a so-called pilot trial process aimed at the speedy examination of a case that concerns many people.
It all started when a German national appealed to a Greek administrative court, arguing that he should not have to be taxed in Greece, where he lives with his Greek wife, on the earnings from his work as an architect in Germany. The tax authorities and the General Secretariat for Public Revenues had told him he had to file a common tax declaration with his wife, including their world wide income.
The administrative court referred the case to the Council of State, which it ruled in favour of the German, saying that filing a common declaration does not mean he should be taxed in Greece for incomes earned abroad.