For the first time, Greece introduces a formal binding tax ruling mechanism, aligning its framework with the preventive compliance practices applied by other countries. Under the new Article 9A of the Tax Procedure Code, individuals and legal entities are now entitled to request, in advance—namely, before specific factual circumstances take place— a binding interpretative position from the Tax Administration on tax and customs matters that arise (Binding Tax Ruling “BTR”).
The new provision enters into force on 1 October 2026. Further procedural details are expected to be specified by decision of the Governor of the Independent Authority for Public Revenue (IAPR). The framework for BTRs is summarised in the following points:
Scope and exclusions
The interpretation of applicable legislation on tax and customs matters is covered. Excluded are:
a. the advance pricing agreements (APA) for transfer pricing methodology,
b. issues related to the application of foreign law in Greece,
c. cases of the applicant that are pending before administrative or judicial appeals.
Basic requirements
a. The factual circumstances are specific, sufficiently defined, and have not yet occurred.
b. There is a question of interpretation of the provisions.
c. The required fee is paid.
Timeframe for issuance of the BTR
The BTR is issued or the application is rejected with reasoning, within 150 days from the receipt of a complete file and the payment of the total fee.
An expedited processing request is available, although the shorter timeframe for issuing the BTR or rejecting the application in such cases is not specified.
Binding effect and validity
The BTR remains in force as long as:
a. the factual circumstances and the legislation remain unchanged,
b. there is no contrary interpretation by a supreme court,
c. any terms/conditions imposed are observed.
For as long as the BTR is valid, it is binding on the Tax Administration. If the taxpayer has complied with it, their tax return is not considered inaccurate/non-filed.
Cost
Minimum fee of €3,500 for the admissibility of the application.
Total fee: €10,000 - €50,000 depending on complexity, the accumulation of issues, the legal form/size of the applicant, and any expedited processing request.
If the application is rejected, the fee is refunded for the amount exceeding €3,500.
Transparency and publication
BTRs are published on the IAPR website in anonymised or pseudonymized form.
The applicant may request non-publication of information that constitutes trade,business, or industrial secrets, or a commercial process.
What’s next
The introduction of BTRs, a mechanism already established in many European countries as well as internationally, has been a longstanding request and constitutes a positive step towards enhancing tax certainty due to its binding nature on the Administration. However, the full effectiveness of the mechanism, which is linked to the further development of investments and transactions in the country, will depend on the operational planning of the IAPR and on the forthcoming regulatory specification by decision of the Governor. Indicatively, it is expected, and it would be appropriate that the following aspects are regulated:
The exact “minimum content” of the application and the level of detail required so that the factual circumstances are considered “specific and sufficiently defined”.
The exact level of the fee based on the criteria set by law and the cost increase in case of an expedited processing request.
The implications of the rejection of the application and whether the required reasoning will be limited to the finding that “there is no interpretive issue” or whether specific, factual and legal substantiation will be provided as to why the issue raised is considered resolved and which is the correct interpretive approach according to the Administration.