The tax status governing PICs is provided for in article 39 of Law 3371/05 (Official Gazette of the Hellenic Republic 178 A), as amended from 01/06/2016 from article 45 of Law 4389/2016.

Main Points:

Portfolio investment companies are required to pay tax at a coefficient set at ten per cent (10%) of the main refinancing operations rate (MRO) of the European Central Bank with a spread added of one percent (1%) and is calculated on the half-yearly average of the PIC’s assets, at current prices.

In case of a change to the MRO the new tax level is applicable as of the first day of the month following the change. The half-yearly tax due may not be less than 0.375% of the half-yearly average of the PIC’s assets, at current prices.

The tax is paid to the appropriate tax authorities within the first fortnight of July and January of the semester following the calculation. This tax payment constitutes the sole tax obligation of the PIC and of its shareholders.