Tax incidence

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.

The large increase in revenue from income and value-added tax - as the electronic tools for curbing tax evasion are paying off - provide the government with the leeway to move forward with permanent tax cuts as of 2025.

The government is launching a new round of tax cuts with a focus on direct income taxes. The signal was set by the prime minister and the minister of the national economy at the inauguration of the new AADE facilities, stressing that tax revenues will allow for new tax cuts.

Prime Minister Kyriakos Mitsotakis announced forthcoming tax cuts as Greece's economy stabilizes, with an eye on reducing VAT and income tax rates by the end of his term in 2027. 

Freelancers will be asked to pay two or three times the income tax they paid in previous years, according to the first settlement notes received.

Salaries may have risen in Greece in 2023, but the tax burden has also increased. For some the rise in wages has taken them into a higher tax bracket, while for most the burden is a result of tax brackets not being adjusted for inflation.

The Finance Ministry and the tax administration are looking for solutions so that professionals stop hiding their actual incomes - i.e. taxable material - through fictitious expenses. 

Ljubljana – Environmental taxes paid into the national budget amounted to EUR 1.309 billion in 2020, 18.4% less than in the year before. Energy taxes represented more than four-fifths of the overall tax take, while almost two-thirds of total taxes was paid by households.

A reduction in business tax from 28 to 24 percent for 2019 and incentives to link large investments to a reduction in taxable foreign income are some of several incentives for investments are some of the measures the government is seeking to introduce in a new draft bill that was presented for public consultation late on Thursday.

Salaried workers, pensioners and self-employed professionals will see significant reductions in their tax bills in 2020, according to a draft law that reduces the lowest income tax bracket to 9 percent from 22 percent for incomes up 10,000 euros, maintains the income tax-free ceiling at 8,636 euros per year and offers deductions for families with children.