Μake us preferred on Google Everyday money transfers through Greece’s IRIS payment service and bank accounts do not automatically create a tax liability. Using an electronic payment service does not, by itself, mean that a transaction constitutes taxable income or a gift.
What matters to the tax authorities is the reason for the transfer, the frequency of the transactions and the overall pattern of money movements.
No threshold for “safe” transfers
Greek tax rules do not establish a specific monetary threshold below which a transfer is automatically considered tax-free and above which it automatically triggers a tax issue.
There is therefore no rule stating that a transfer of, for example, up to €50 or €100 will not be examined, while a larger transfer will automatically be taxed.
Instead, authorities may assess the pattern of transactions. Small, occasional transfers related to everyday needs or the sharing of common expenses do not acquire a taxable character simply because they are made electronically.
When tax authorities may take an interest
The situation is different when transfers are large, systematic and have no obvious financial justification.
In such cases, tax authorities may examine the nature of the transactions and seek to establish their actual purpose. Depending on the circumstances, they may investigate whether the payments constitute a cash gift, payment for services or another type of financial transaction.
In other words, an occasional small transfer between friends or relatives is not treated in the same way as a regular pattern of significant money flows between two people.
What applies to transfers between relatives
The relationship between the person sending the money and the recipient is also important.
For cash gifts to people in Category A, which includes, among others, parents, children and grandchildren, an €800,000 tax-free threshold applies, subject to the conditions established by Greek law.
A key requirement for this tax treatment is that the gift be documented through a money transfer via a financial institution, in accordance with the applicable rules.
The same tax-free threshold does not apply in the same way to cash gifts between friends. The tax treatment depends on the category of the recipient and their relationship to the donor.
IRIS does not make a transaction a gift
The IRIS service is simply the method used to transfer the money. It does not mean that every payment made through the service is a gift or taxable income.
The crucial factors are the actual reason for the transaction and the overall financial profile of the money movements.
Ordinary, small transfers that correspond to genuine everyday needs or the settlement of shared expenses do not, by themselves, create a tax obligation.
By contrast, when transactions become systematic and involve significant amounts without a clear explanation, they may attract the attention of tax authorities, which could request documentation establishing the origin and purpose of the funds.
