How does mileage allowance in Greece work?
- Fuel rates: this is the primary expense covered by the allowance
- Wear and tear: the allowance factors in general vehicle depreciation due to business use.
- Maintenance and repairs: includes a portion of routine maintenance costs and potential repairs related to business use
- National insurance: a part of the vehicle insurance cost is considered, as business use may affect insurance premiums
- Vehicle tax: if applicable, a portion of annual vehicle tax or registration fees may be included
- Tyre replacement: the allowance typically factors in tyre wear due to business mileage.
In Greece, the tax treatment for cars, whether their own vehicle (owned by the employee) or company cars, includes guidelines for types of cars, such as electric and luxury cars. These rules were updated by a law passed in the tax year 2016.
Company cars as benefits in kind
Price range (Retail price before taxes)
Percentage of retail price
Reduction for 3-5 years old
Reduction for 6-9 years old
Reduction for over 10 years old
Up to €12,000
4%
10% reduction
25% reduction
50% reduction
€12,001 to €17,000
7%
10% reduction
25% reduction
50% reduction
€17,001 to €20,000
14%
10% reduction
25% reduction
50% reduction
€20,001 to €25,000
18%
10% reduction
25% reduction
50% reduction
Over €25,000
22%
10% reduction
25% reduction
50% reduction
Luxury Vehicle tax
Engine capacity
Additional percentage of retail price
1,929cc to 2,500cc
5%
Over 2,500cc
13%
Tax Benefits and Subsidies for Electric Vehicles (EVs) in Greece
- Exemption from luxury tax
- Lower CO2-based taxation
- Exemption from vehicle registration fees
- Exclusion of market value from income calculation for certain vehicles
Recipient
Subsidy description
Subsidy amount
Individuals
30% subsidy for long-term leases of EVs, without buyback obligation
Up to €8,000
Companies
30% subsidy for 1-20 vehicles
Up to €8,000 per vehicle
Companies
20% subsidy for 21 vehicles and over
Up to €6,000 per vehicle
Additional subsidies
Disabled persons, families with dependent children and companies based on Greek islands
Variable amounts
Smart charger purchase
€500 subsidy for purchasing a smart charger
€500
What is not included in the mileage allowance?
- Travel allowance: separate travelling allowance that covers broader travel expenses, such as flights, trains, or other transportation modes
- Public transportation fares: costs for using buses, trams, subways, or other public transport services
- Parking fees or tolls: charges for parking or road tolls, which are usually reimbursed separately
- Per diem: a daily allowance provided to cover meals, lodging and incidental expenses during business travel, so employees are compensated for out-of-pocket costs. The European Commission's per diem rate for Greece (updated as of 2022) is €82 for daily subsistence and €140 for accommodation per night.
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Frequently asked questions about mileage allowance in Greece
How do the mileage rates in Greece compare to other European countries?
Are there different mileage reimbursement rates in Greece for each type of car?
What is the HMRC equivalent in Greece?
How often are mileage reimbursement rates updated in Greece?
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