Taxation in Germany

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.

The state budget recorded a surplus of 4.376 billion in the first half of January-November, exceeding by 2 billion more than the estimates for a surplus of 2.293 billion euros that were forecast in the budget presentation report, which was passed yesterday for 2025.

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.

The taxes that individuals and businesses must pay during December amount to 5.5 billion euros.

The payment of income tax, Single Property Tax (ENFIA), value-added tax (VAT) and road tax are the most important obligations that taxpayers must cover by December 31.

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.

The tax bill submitted to Parliament on Tuesday provides for a number of significant changes to property taxation among the long list of amendments to legislation, as the government is attempting a tax overhaul that will make taxation more fair and investment more attractive.

Reducing the tax burden for those investing in real estate, especially in preserved and closed properties, is offered by provisions in the tax bill tabled in the House.

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

Three out of four enterprises in Greece show losses or profits below the minimum wage in their tax returns. Small and personal companies do not fall under any kind of "minimum taxable income," so the tax they are required to pay depends on the content of the books and the auditing capabilities of the state mechanism.

The tax exemptions provided by the state to households and businesses have reached 18.8 billion euros, an amount corresponding to 28.2% of total tax revenue.

Without tax exemptions, tax revenues would have reached €85.5 billion, enabling governments to pursue social policy with targeted actions and permanent measures.