Frequent or high-value transfers between friends, acquaintances and distant relatives can draw tax authorities’ attention if their purpose and source are unclear.
Money transfers through IRIS or other banking applications do not automatically constitute taxable income. However, frequent transactions, particularly those involving large amounts without a clear explanation, may come under scrutiny by Greece’s tax authorities.
In such cases, authorities may examine whether the money represents undeclared income or an undeclared gift. The relationship between the sender and recipient is also important, as different tax treatment applies depending on the degree of family relationship.
As a result, repeated or significant transfers between friends, acquaintances or more distant relatives may require sufficient documentation explaining their source and purpose.
If a transaction is deemed by the tax authorities to be a gift or parental transfer and it has not been declared according to the required procedures, a tax liability may arise. The same can happen if the amounts are determined to constitute undeclared income.
How different relationships are treated
The tax treatment of money transfers varies depending on the relationship between the people involved.
Parents, grandparents and grandchildren: Transfers of up to €800,000 are tax-exempt. If the transfer is made in cash, however, a 10% tax applies from the first euro.
Children’s allowances and small IRIS transfers: Pocket money and small transfers are not treated as gifts.
Siblings, nieces, nephews and uncles or aunts: There is no tax-free threshold.
Friends and acquaintances: Repeated transfers to the same person can result in a 20% tax.
