Tax

The first of the two new Capital Taxation Centers (KEFOK), which undertakes to ensure the effective taxation and control of real estate, is to be activated on Monday. Their monitoring is leaving the local tax offices and all orders to them will be given centrally.

In the past, there were many cases of different interpretations, as well as glaring cases of mistakes by tax officials.

The Cypriot Parliament has passed a law enabling beneficiaries to apply for a 5% reduced VAT rate within a year of acquiring a residence.

The procedures for issuing tax information will be faster as the interoperability between the state agencies is adopted. The Independent Authority for Public Revenue (AADE) will be immediately informed about the existence of non-overdue debts of the citizen and accordingly grant the tax clearance certificate, or not.

The tax authorities are increasing the burden on owners choosing to rent out their property short-term.

After many months of outperformance, March tax revenues were slightly short of the budget target, perhaps signaling a return to balance and certainly justifying the government's refusal to offer any handouts at this stage, so as not to disturb fiscal stability.

Sofia residents who have dutifully paid their local taxes for the year 2024 have collectively pocketed a substantial sum, saving a remarkable BGN 4,678 million by April 14. This significant boon in savings comes as a result of timely payments, demonstrating a responsible approach to civic obligations.

Tax audits have made a huge leap in recent years, mostly in terms of their quality and not so much in terms of their number, which is more or less on the same level as previous years

Bureau audits, complex cross-checks and data now obtained from dozens of sources have curbed tax evasion, uncovering undeclared income.

The deployment of new technologies has made Greek authorities more adept at detecting tax evasion. Inspections are more targeted, more extensive, more transparent. 

However, the detection of violations does not automatically lead to the collection of the imposed fine. No algorithm has yet been found that will make the real punishment of tax evasion as effective as the inspections.

The Independent Authority for Public Revenue (AADE) is establishing a special forces squad for tax and customs audits.

The new large prosecution unit will take over the control of smuggling and tax evasion, with tax and customs officers working directly together, with the assistance of the AADE business chamber.

Finance Minister Kostis Hatzidakis disclosed a new array of economic measures for 2025 during the Delphi Economic Forum on Wednesday, valued at 870 million euros.