Taxation in France

The exhaustion of Greeks' taxpaying capacity and the difficulties in meeting day-to-day expenses are leading to more and more citizens waiving inheritances, especially when they concern real estate assets.

Last year the government implemented additional tax measures of 2 billion euros in compliance with the third bailout program. Nevertheless tax revenues grew by just 45 million euros in 2017 compared to 2016, according to official figures.

Changes in the way social security contributions are paid as of next year will increase the burden on freelance professionals.

In 2018 freelancers are set to see their incomes shrink further, as 46 percent will have to go toward the payment of contributions and taxes.

The new budget submitted in parliament on Tuesday projects growth of 1.6% this year and 2.5% in 2018, while unemployment is expected to drop from 19.9% this year to 18.4% next year, while there will be 2.1 billion euros in government spending cuts.

Instead of raising state revenues, as was intended, the increased demands on self-employed professionals in terms of taxes and social security contributions have resulted in increased tax evasion, confirming the Finance Ministry's worst fears.

Finance Ministry data released on Thursday confirm there is a black hole in state revenues for the month of July, mainly due to a large number of people not having paid the first installment of their additional income tax.

Net revenues for July amounted to 4.931 billion euros - 756 million below the target set in the medium-term program for 2018-21.

First-quarter budget data are generating concern as state revenues continued to show strong signs of fatigue, particularly the course of indirect tax takings.

About a tenth of Greek taxpayers forked out 60 percent of the total income tax paid last year, according to data released on Thursday by the Independent Authority for Public Revenue.

Greek households paid an additional 6.1 billion euros in taxes for the current fiscal year compared 2015, according to the data posted on the website of the Independent Public Revenues Authorities. The data showed that the aggregate tax income declared by Greeks in 2016 amounted to 82.1 billion euros, in comparison to 75.1 billion in 2015 after the calculation of th set of presumptions.

The government is considering a new property tax to replace the existing ENFIA after 2018, whose calculation will be based not only on the value of each taxpayer's property assets but also on their annual income.