16 July 2015
Our local associates have advised us that Greek IPT rates will increase with effect from today. The Greek Parliament passed the relevant Legislation yesterday (L. 4334/2015, Article 1, Paragraph 3).
We anticipate further information will be released by the Authorities shortly. As such, this Alert is not conclusive but as the rate increase takes immediate effect we have provided you with our understanding to date. The new IPT rates are in accordance with L. 4334/2015, Article 1, Paragraph 3. These are, and subject to further information:
Fire/Property (Classes 8 & 9) 20.0%
Motor insurance (Classes 3 & 10) 15.0%
All other policies 15.0%
It appears that exemptions in respect of Non-Life insurance have been abolished. For reference, the default standard rate was 10.0%
We appreciate this puts insurers in a difficult compliance and commercial position based on limited information. We will update you immediately as soon as we have any further information. For the avoidance of doubt, this is a separate issue from other Greek premium taxes such as the TEAA PAE.