Greece’s Independent Authority for Public Revenue (AADE) is examining frequent or high-value transactions made through IRIS to determine whether they involve undeclared income, gifts or parental gifts, according to a report by ERT. Money transfers through IRIS do not in themselves constitute taxable income, but the nature and purpose of each transaction are crucial if the tax authorities request supporting documentation.
Money transfers made without consideration that are deemed to increase the recipient’s assets — for example, funds used to purchase property or a car, make an investment, build up savings or repay a personal loan — may be considered a parental gift when they come from parents, or a gift when they come from third parties, and must be declared through the relevant filing on MyPROPERTY. Ordinary living expenses and pocket money for minors or students up to the age of 25 are exempt from the declaration requirement, according to clarifications by a tax expert cited by ERT.
Including a clear description or reason for each IRIS transfer does not eliminate any potential tax liability, but it can significantly help document the transaction in the event of an audit.
Gifts are subject to taxation depending mainly on the relationship between the sender and the recipient. For monetary gifts or parental gifts between persons in Category A — spouses or civil partners, children, grandchildren and parents — when the transfer is demonstrably made through a financial institution, a tax-free threshold of up to €800,000 applies, with a 10% tax on any amount above that threshold.
Monetary gifts to persons in Category B — such as siblings, nieces and nephews, stepparents, stepchildren, sons- and daughters-in-law, and parents-in-law — are taxed at 20%. Transfers to persons in Category C — including any other relatives not falling within the first two categories, as well as non-relatives such as friends or acquaintances — are taxed at 40%.
Including a clear and accurate description of the reason for each IRIS transfer does not remove any potential tax obligation, but it may significantly help establish the purpose of the transaction in the event of a tax audit.
Sources: ΑΑDΕ, ΕRΤ
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