Statutory Framework of Donations and Sponsorship

Α. Donations and sponsorship by private individuals

The new tax law (3842/2010 art.1 para. 4ζ) provides for 20% tax breaks (on the sponsorship/donation amount) for private individuals who grant money in the form of sponsorship or donations to legal entities under private law set up for charitable or cultural purposes.

The following conditions must be met in order for the law to apply:

1. The total amount on which the reduction is calculated may not exceed 10% of total income taxable under the general provisions of the law.
2. The reduction comes into effect if the donation / sponsorship amounts exceed 100 euros per annum.
3. Where the donation / sponsorship amounts exceed 300 euros per annum, they are only taken into account if they have been deposited into a special account belonging to the legal entity, opened for this purpose at a bank legally operating in Greece. The note of payment issued by the bank must include the donor’s or sponsor’s details, the donation or sponsorship amount both in numerals and written out in full, the date of deposit and the donor’s or sponsor’s signature.
4. Legal entities set up for cultural purposes are determined by joint decision of the Finance and Culture Ministers, following checks carried out by the Ministry of Culture.

Β. Donations and sponsorship by businesses

The new tax law (3842/2010 art. 11 para. 3β) states that amounts up to 10% of total net income or balance-sheet profits, in the form of donations to legal entities under private law set up for charitable purposes, or sponsorship to legal entities under private law set up for cultural purposes, are offset.

The provisions of the new tax law and Law  3235/2007 on sponsorship apply in all other matters.

Law 3525/2007 on Cultural Sponsorship