Taxation in the Netherlands

Businesses that have increased their staff for at least three months in 2022 will this year be exempt from the business tax known as the fee for practicing a profession ("telos epitidevmatos").

A new, favorable tax regime with lower rates has attracted more than 4,500 workers from abroad to work in Greece, many of whom are Greeks who left during the financial crisis in the previous decade. 

The government is attempting to support young freelancers in their first professional steps through a favorable tax framework.

In this context, new self-employed people will be taxed on their 2022 income at a rate of 4.5% - i.e. at a rate that is 50% lower than that which applies to the first tax bracket.

As many as 16 changes are being introduced from January 1 in the taxation of all households, enterprises and property owners, mostly concerning reduction that will significantly alter the landscape for local taxpayers. They are the following:

In its review of objective values - property rates used for tax purposes - the Finance Ministry is aiming to include real estate valued at an estimated 80-100 billion euros and at least 7,000 new areas in the system.

Freelance professionals and all personal enterprises in general are the biggest winners of the new tax bill. As of 2020 they will enjoy a reduction in their tax bills amounting to or in some cases even exceeding 1,300 euros each, thanks to the slashing of the basic tax rate from 22 to 9 percent.

The government will next month introduce a new set of tax brackets for 2020 incomes, but will take a few steps back from its election announcements to avoid undermining fiscal stability.

The government is reviewing some of its election pledges regarding next year, as their cost would go far beyond the fiscal leeway in 2020 and lead to a reaction by the markets and the country's creditors.

The Finance Ministry is considering the abolition of an amendment introduced by the previous government for a 10 percent average reduction of the Single Property Tax (ENFIA), the cost of which is estimated at 265 million euros, without ruling out New Democracy's own program on property taxation as of this year.

The government's pledge to reduce the minimum income tax rate from 22 to 9 percent for the first 10,000 euros declared will have a fiscal cost of at least 800-900 million euros per year.