Tax

With one hand, the 2025 state budget “gives” €1.1 billion for new benefits, tax breaks, and measures to support the economy. However, with the other, it “takes,” as rising incomes lead to a corresponding increase in tax revenues.

Hundreds of thousands of taxpayers use cards to pay for everything from hair salons to taxis, but without seeing the deduction the tax office has promised.

Moreover, a regulation introducing a "haircut" in the settlement for those who upgrade the energy efficiency of their home has so far benefited less than 1,000 owners across Greece.

The Ministry of Finance aims to address the growing housing problem by offering a dual incentive to taxpayers: a subsidy for the renovation of vacant properties and tax-free rental income. The “Renovate – Rent” program provides a subsidy of up to €8,100 for renovation expenses, while the income from the rental remains tax-free for three years.

Let’s see an example:

The Interior Ministry has started cleaning up electoral rolls, implementing a provision included in the law on postal voting, approved last January.

According to an official announcement, the aim is to remove deceased voters from the rolls, particularly those abroad whose deaths were never reported to the relevant Greek authorities.

Corporate and personal income taxes will not increase next year, Deputy Prime Minister and Finance Minister Lyudmila Petkova announced. She also confirmed that the 2025 budget deficit will be kept within 3% of GDP, with a package of measures targeting both revenues and expenditures to achieve this goal.

Greece lowers the percentage of taxes in terms of GDP and converges with the eurozone average, while increasing its dependence on indirect taxes and especially value-added tax.

The standard arrangement of 24 to 48 installments for debts to the tax office is becoming more flexible, as the draft law makes it easier for those who owe more than 50,000 euros.

Municipalities across Bulgaria have initiated increases in local taxes and fees, with several municipal councils incorporating changes to the Ordinance on determining the amount of local taxes into their meeting agendas. Dobrich's municipal councilors were the first to act, approving hikes in property and car taxes, as well as fees for taxi transport licenses within the municipality.

Ahead of the new tax bill, the Ministry of Economy and Finance answers 13 questions to make it more clear what changes are coming in this section. The 12 tax cuts that are being enacted, the incentives given to businesses and all the reforms to the tax law.

The 13 questions and answers on the new tax bill