Income tax

The good course of the economy and increased revenues are also reflected in the data of the tax administration, according to which eight out of 10 euros are paid on time by taxpayers and businesses.

Taxes in excess of 5 billion euros will be paid every month from January 2025 by taxpayers and businesses, with total receipts approaching €70 billion next year, an increase of €2.5 billion compared to the current year.

Tax authorities will be able to issue income tax assessments that will be determined based on the data available to the tax authority even one day after the deadline for submitting tax returns.

Homeowners who rent closed properties or convert property from short-term to long-term leases will be able to exempt tax on income derived from those rentals, under new rules. This exemption for rental income will appear on the statements on the 2025 tax returns.

Greece applies one of the highest value-added tax rates internationally, but few people end up paying it. The 24% VAT rate, which is among the seven highest in Europe, only affects 38% of consumption, while only four out of 100 are taxed at the highest rate of the personal income tax scale.

There are a number of steps and options taxpayers can take starting today to reduce the cash portion of their 2025 tax return. These moves range from using electronic payments and collecting e-receipts, to spending on property renovations, activating closed properties and rational preparation for timely filing of tax returns.

As the political debate on VAT reductions in the country is “ignited”, the OECD published its annual report on Greece on Thursday and recommends that the government limit or abolish low VAT rates, remove tax exemptions for pensioners, and increase taxes on “unhealthy” habits and products such as tobacco or anything containing sugar, salt, etc.

The imbalances in the income tax calculation system are expected to come into focus in the coming period.

The government has finalized the new rules regarding the submission of tax returns to apply as of 2025, according to the final version of the tax bill currently being debated in Parliament.

The tax bill titled “Measures for the Enhancement of Income, Tax Incentives for Innovation and Business Transformations, and Other Provisions” was submitted to Parliament yesterday, including additional positive provisions.

Key Additional Provisions