Greece’s Circular E. 2011 clarifies procedures for government leases, local official pay, and school crossing guard compensation under the Digital Transaction Tax, including transitional rules, retroactive withholdings, and exemptions.
Greece’s Independent Authority for Public Revenue (AADE) issued Circular E. 2011 on 10 March 2026, providing detailed guidance on the application of the Digital Transaction Tax (Law 5177/2025), which replaced the Stamp Duty on 1 December 2024.
The circular outlines procedures for lease agreements with government entities, remuneration of elected local officials, and compensation for school crossing guards.
Under the circular, for leases with the State or general government bodies, the lessee must remit the Digital Transaction Tax via a specific declaration. During the transitional period from 1 December 2024 to 31 December 2025, if the tax was withheld by the government entity but not remitted, the entity may pay it using the e-Paravolo application with code 5008, including the months covered and the lessee’s name and Tax ID (AFM) in the “Remarks” field. A certificate of remittance must be provided to the lessee. From 1 January 2026, standard legal procedures apply for rent payments.
For remuneration of mayors, deputy mayors, and presidents of municipal councils, a 1.20% Digital Transaction Tax applies. Local authorities must retroactively withhold tax for the period from 1 December 2024 to 6 November 2025 via payroll and remit it by 29 May 2026 to avoid penalties.
Compensation for school crossing guards is exempt from the Digital Transaction Tax, as such payments are not considered taxable under Law 5177/2025. Any tax withheld incorrectly since 1 December 2024 must be refunded through payroll.
This guidance aims to ensure legal certainty and fair administration during the transition to the new Digital Transaction Tax regime.
