I have been told that if the person who rents out their house for tourists with an EOT licence is paying National Insurance in UK (or similar elsewhere) they can obtain an A1 form, which exempts them from paying the OAEE (TEBE) insurance payment of 900 Euros every two months.
Has anyone else been told this, or can give advice?
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Message posted by Dextercat on 14 January 2012 at 3:58pm - IP Logged
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This is correct, but of course it excludes UK pensioners who no longer pay National insurance. I imagine many property owners in Corfu fall into this category.
Message posted by SusieH on 14 January 2012 at 4:22pm - IP Logged
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I am a pensioner and no longer paying NI in the UK. Because I own a property in Corfu which I let, I was told I had to pay 250 euros per month insurance because I am no longer working. I don't really understand why. Insurance for what? Can someone enlighten me please?
Message posted by CorfuHelp on 14 January 2012 at 9:57pm - IP Logged
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CorfuHelp
It is the Greek equivalent of NI for running a business (lettings) in Greece
Message posted by Jeanne on 15 January 2012 at 3:28pm - IP Logged
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I am afraid that you can only get an A1 form if the business or work you carry out in Greece is the same as the UK. Mike has been down this road.
I am coming over to Corfu in the summer with my wife and we are also think about looking for a flat to buy and let it out when not there. This sound OK?
But this above is putting me off. I will not be working in Greece so my UK NI is no use then for exemption?
Also is this charge for the whole year?
Ed
And what happens if you get no punters?
And do you pay UK income tax? I live and work there.
Is the charge based on house size?
Message posted by janmanessi on 16 January 2012 at 10:33am - IP Logged
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Have had other advice stating that the AI is available even if the work is not the same- so have asked my son in UK to investigate as he is applying for the permit- and I am seeing accountants etc. here too to check...not over hopeful but will try!
Yes the charge is for the whole year and is irrespective of whether you have clients or not- as this is the insurance for running a business with no caveats as to the success or failure of it!
I was told I could have a cheaper insurance (OGA) if I had less than ten beds (I have) and if each room had an ensuite bathroom (they have not)
Message posted by angela chapman on 16 January 2012 at 11:36am - IP Logged
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angela chapman
Rules seem to change all the time.
We spoke to the U.K. regarding the N.I.also received a letter, part of it says,
We can only issue certificate A1 under article 13.2 of EC regulations 883/04 if the work you carry out in the country in which you will be working is similar to the work normally done in the U.K.
The phone no is 0044 1912259824 if anyone needs it.
Seems that at the moment to hire out your property for holiday rentals is classed as a business, however our accountant has since told us that if you rent out on a permanent basis that is not classed as a business. There has got to be some clarification soon because there will be even more people dropping out of holiday rentals (as we and others we know have already done)
How much is the OGA??? we have 2 beds both ensuite so that may be an option for 2013.Although I suspect this will all have changed again by then.
We are fortunate that we never built the house with the intention of renting it out, but work in the U.K. keeps us from spending as long there as we first anticipated
Angela
Message posted by janmanessi on 16 January 2012 at 3:54pm - IP Logged
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Accountant in Corfu insists AI is not only for similar work...we shall see what the NI people say to my son- don't hold out much hope though! Thank you for the phone number which I will pass on to him
Message posted by angela chapman on 16 January 2012 at 5:55pm - IP Logged
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angela chapman
Yes our accountant told us the same thing. Good luck.
It is not feasable to pay all this money for N.I. by the time you pay everything else you would have to increase rentals substantially to make it worth while, tourism will suffer.
And what makes the difference if your bedrooms are ensuite, daft.
Also been told that the rules are not the same in the whole of Greece, each area puts there own take on things.
Message posted by Tina B on 16 January 2012 at 9:09pm - IP Logged
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The HMRC website makes it very clear what the A1 form is for, and it is for similar work etc.
As regards tax as Greece is in the EU there is a double taxation agreement in place, which people are getting wrong too. Again HMRC website has plenty of information and a helpline number.
Message posted by janmanessi on 16 January 2012 at 9:48pm - IP Logged
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Is there another form that can be got when all the Greek authorities are asking for is proof that the owner of a business (renting a property) in Greece is insured in his home National Insurance scheme?
Message posted by Dextercat on 16 January 2012 at 11:18pm - IP Logged
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Still having trouble getting my head round why NI should or can be paid in two EU countries.
Something doesn't seem to add up.
Hopefully all will become cleat at some stage.
Message posted by Tina B on 16 January 2012 at 11:44pm - IP Logged
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They also seem to be wanting those who are of state retirement age in the UK and exempt from NI here to pay contributions in Greece if renting property. I have been looking for an official government site in Greece to check this out, still searching.
Message posted by janmanessi on 16 January 2012 at 11:53pm - IP Logged
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My situation is that I get a UK state pension (not full as I only worked for a few years there), and a percentage of my husband's Greek pension.
I jointly own our property with my two sons.
If I put our EOT application in in my name I immediately lose my Greek pension because I am deemed to be working, and to add insult to injury I also have to pay TEBE (who currently give me my pension) about 900 Euros every two months...
I understand the reason any business has to have insurance and hope we can sort things out!
Message posted by SusieH on 17 January 2012 at 1:03am - IP Logged
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