Tax audits and tax litigation in Greece follow a structured administrative and judicial path administered by the Independent Authority for Public Revenue (AADE), with mandatory appeal stages before proceedings may advance to the courts. International businesses and funds operating in Greece face particular exposure during audits that touch on transfer pricing, permanent establishment questions, and cross-border structuring – areas where procedural missteps can permanently close off defences. Ferraz & Whitmore advises clients at every stage of this path, from the initial audit response through to treaty-based dispute resolution.
When You May Need Specialised Audit and Litigation Support
A tax audit in Greece can arise from routine desk reviews, industry-wide campaigns by AADE, or targeted examinations triggered by cross-border transactions flagged during automatic exchange of information. The risk is not confined to large corporates: investment funds, holding vehicles, non-domiciled individuals under the lump-sum regime, and employees using the inbound employee regime are all potential audit subjects when their Greek nexus or income characterisation is scrutinised.
Common situations that bring clients to us include: receipt of an AADE information request or inspection notice; a preliminary tax assessment (provisional or final) that differs materially from the filed position; disputes over the arm's-length pricing of intra-group transactions; and challenges to the application of a double tax treaty or the EU Arbitration Convention 90/436/EEC. The earlier specialist input is sought, the broader the available response options.
The Greek Tax Dispute Path: From Audit to Council of State
Greece operates a mandatory administrative appeal stage before any judicial recourse. An assessed taxpayer must submit an appeal to the Dispute Resolution Directorate (DED) within the prescribed statutory period. Failure to complete this step bars access to the administrative courts. The DED examines both procedural and substantive grounds and may partially or fully annul an assessment; it may also uphold it, in which case the taxpayer's litigation options open.
After the DED, the dispute moves to the administrative courts. First-instance administrative courts hear the majority of tax disputes; significant or legally complex matters may ultimately reach the Council of State (Symvoulio tis Epikrateias), Greece's supreme administrative court. Cases involving transfer pricing and treaty interpretation have produced important judicial guidance at this level. The Areios Pagos – Greece's supreme civil and criminal court – becomes relevant in a narrower set of circumstances, primarily tax criminal proceedings or enforcement-related civil matters.
Throughout this path, strict procedural timelines apply. Missing a filing window at the DED or court stage typically extinguishes the right to challenge the assessment. Our role is to map those deadlines from the moment we receive an audit file and ensure nothing is waived inadvertently.
If you are at the audit response stage or have just received a preliminary assessment, we can review your position and advise on the strongest available defences. Write to us at info@ferrazwhitmore.com or visit our contacts page.
Cross-Border Dimension: MAP, the EU Arbitration Convention and Directive 2017/1852
Where a Greek tax assessment effectively taxes the same income that has already been or may be taxed in another state – a classic double-taxation scenario arising from transfer pricing adjustments or permanent establishment attributions – purely domestic litigation is often insufficient. The preferred instruments for resolving these situations are:
- Mutual Agreement Procedures (MAP) under the applicable bilateral tax treaty, initiated through the competent authorities of the two states involved. MAP suspends or limits the taxpayer's exposure to double taxation while the competent authorities negotiate, but it does not guarantee a binding outcome within a fixed period under all treaties.
- The EU Arbitration Convention (90/436/EEC), which covers transfer pricing disputes between EU member states and provides for mandatory arbitration if competent authorities fail to reach agreement within the prescribed period. Greece is a contracting party.
- Directive (EU) 2017/1852 on tax dispute resolution mechanisms in the European Union, which strengthens and modernises MAP and arbitration procedures between EU member states and sets clearer procedural obligations on competent authorities.
Choosing the right instrument – or combining domestic litigation with MAP – requires careful sequencing. A court judgment in Greece, for example, may affect the treaty competent authority's position. We advise clients on this sequencing before any formal submission is made.
For a broader picture of how Greek tax law applies to inbound investment and structuring, our Greece tax law overview provides the foundational context that this page builds upon.
Typical Pitfalls in Greek Tax Audits
Clients approaching us after an audit has begun often face avoidable complications. The most frequent include:
- Inadequate documentation at the outset. AADE inspectors examine contemporaneous records. Transfer pricing files, board resolutions, intercompany agreements and bank statements must be available and internally consistent. Reconstructing documentation after an information request is both difficult and unconvincing.
- Treating the DED appeal as a formality. The DED stage is a substantive opportunity to present legal and factual arguments, submit new evidence, and narrow the disputed amount. A weak submission here limits what can be argued in court.
- Missing the window for advance certainty. AADE issues rulings and circulars that can clarify a taxpayer's position before a transaction is executed or a filing is made. Clients who do not seek this certainty in advance sometimes find themselves litigating positions that could have been confirmed or restructured before they became disputes.
- Underestimating the interaction between Greek proceedings and foreign entities. A Greek assessment that adjusts a payment made to a related party in another country creates a corresponding adjustment risk for that entity. Coordinating the response across jurisdictions from the start reduces the risk of conflicting positions.
- Failing to consider special regimes. The non-dom lump-sum regime and the inbound employee regime each have specific compliance conditions. An AADE audit that questions the conditions of either regime can produce assessments that are larger than the client anticipated if the procedural response is not calibrated correctly.
How Ferraz & Whitmore Works on Greek Tax Disputes
Our approach begins with a structured review of the audit file or assessment notice: we identify the legal basis of AADE's position, map the available defences, and set out the procedural timeline in writing so the client understands what decisions need to be made and when. We do not treat audit defence and litigation as separate exercises – the arguments developed at the DED stage are built with the administrative courts in mind.
Where the dispute has a cross-border dimension, our Lisbon and partner-network teams engage alongside local Greek counsel to coordinate the MAP or EU Arbitration Convention track in parallel with domestic proceedings. This integrated coverage is particularly relevant for multinational groups where the Greek entity is one of several parties affected by a transfer pricing adjustment.
Our litigation and arbitration practice in Greece sits alongside our tax work and is available for the enforcement and procedural dimensions of complex disputes. Where structuring changes are warranted in light of an audit, our tax structuring practice for Greece provides the advisory layer.
We also maintain a detailed practical guide on how to challenge a tax assessment in Greece, which sets out the procedural steps in granular terms: Challenging a Tax Assessment in Greece – Practical Guide.
Self-Assessment: Is Your Position Protected?
Before an audit notice arrives, it is worth asking whether the following are in order:
- Are your intercompany agreements signed, dated and consistent with how transactions are actually executed and priced?
- Do you have a contemporaneous transfer pricing file that meets the documentation standards applicable in Greece?
- Have you assessed whether your group's activities in Greece create a permanent establishment risk, and is that assessment documented?
- If you rely on the non-dom or inbound employee regime, are the qualifying conditions actively monitored each year?
- Do you have a process for tracking AADE circulars and rulings that may affect your filing positions?
- Is there a coordinated response protocol between your Greek advisers and the tax teams in other jurisdictions where related entities operate?
A negative answer to any of these questions represents an area of exposure that can be addressed before an audit begins rather than managed reactively under time pressure.
Whether you are facing an active audit, considering an appeal, or wish to review your exposure before AADE makes contact, our team is available to discuss the specifics. Contact us at info@ferrazwhitmore.com or through our contacts page to arrange a confidential initial conversation.
Disclaimer: This publication is provided for informational purposes only and does not constitute legal advice. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. Ferraz & Whitmore assumes no liability for actions taken or not taken based on the contents of this material. For advice regarding your particular situation, please contact info@ferrazwhitmore.com.