Minor Children, Dependent Members and Taxation of Income: What Article 11 of the Greek Income Tax Code Provides

The taxation of minor children is a frequent concern for parents, especially when children receive income from rental property or survivor’s pensions. Article 11 of the Greek Income Tax Code (Law 4172/2013) clearly defines both the concept of a “dependent member” and the way in which minors’ income is taxed.

1. Definition of a Dependent Member

According to Article 11 of the ITC:

Dependent members include, among others, unmarried children up to the age of 18.
However, if a child’s annual taxable income exceeds €3,000, the child is no longer considered a dependent member, even if living with the parent.

👉 In practice, this means:

The parent loses the tax-free allowance increase for dependent children.
The child is no longer listed as a dependent member in the parent’s annual income tax return (Form E1).

2. Taxation of Minors’ Income

Paragraph 4 of Article 11 ITC establishes the general rule:

The income of minor children is added to the parent’s income and taxed under the parent’s name, provided the parent exercises parental care.
Exceptions (where the income is taxed under the minor’s own tax ID):
- Employment income (Article 12 §2).
- Survivor’s pensions due to the death of father or mother.

3. Practical Example

Consider the following case:

A minor inherits an apartment generating €8,000 in annual rent.
Additionally, the child receives a €4,500 survivor’s pension due to the mother’s death.

Tax treatment:

The €8,000 rental income must be declared and taxed in the father’s tax return (the parent with parental care).
The €4,500 pension must be declared separately under the child’s own tax identification number (AFM).

📌 Important: Even though the child is no longer considered a dependent member (due to income exceeding €3,000), the rental income is still added to the parent’s income.

4. What This Means for the Parent

Loss of dependent allowance: The parent cannot claim tax benefits for dependent children.
Higher taxable income: The parent’s income increases, as minors’ rental income is aggregated and taxed under the parent’s return.
Dual filing obligation: One return is filed under the parent’s AFM (with the rental income), and a separate return is filed under the child’s AFM (with the pension).

5. Common Mistakes

Parents mistakenly declaring survivor’s pensions in their own tax return instead of the child’s.
Failure to declare minors’ rental income, assuming the child’s independence removes the obligation.
Confusion between the concept of “dependent member” and the obligation to declare minors’ income.

6. Conclusion

Article 11 of the ITC makes clear that:

A minor child with income above €3,000 is no longer considered a dependent member.
However, rental income from real estate is still taxed under the parent who exercises parental care.
Only specific categories of income, such as survivor’s pensions, are declared under the minor’s own AFM.

Correct treatment is essential to avoid penalties, as errors in reporting minors’ income are frequently identified by the Greek tax administration.