More than 7 million taxpayers in Greece will see tax breaks worth 3.87 billion euros, following the latest legislative changes tabled by the government and ratified by Parliament.
According to the Independent Authority for Public Revenue (AADE), tax deductions and exemptions over the last five years have meant less revenues for public finances, with AADE figures up until September 2023 showing 1,064 tax exemptions worth 15.557 billion euros.
Reducing income and corporate taxes was a main campaign plank of center-right New Democracy (ND) prior to the 2019 and 2023 general elections, which the party handily won.
Exemptions in capital taxation – affecting property transfers, parental benefits, donations, inheritances and social insurance contributions – total 5.5 billion euros, meaning a less revenue of 5.396 billion euros.
Thanks to the implementation of 206 tax exemptions and deductions, around 48,000 businesses leveraged relief from tax burdens to the tune of 1.84 billion euros, while nearly 4.9 million property owners saw a 76.5-million-euro decrease in this year’s property tax (ENFIA) due to discounts and exemptions.
Recently, Bank of Greece (BoG) Gov. Yannis Stournaras warned that the state was in “need of revenue” advising the Mitsotakis government to reassess tax breaks and determine who is actually eligible and who meets the criteria for “assisting the most vulnerable”.
Tax Exemptions Breakdown
Some of the notable breaks include:
- Income tax for individuals, 239 exemptions and deductions costing 5.39 billion euros. Breaks worth 3.85 billion euros are related to the tax-free ceiling utilized by wage-earners, pensioners and farmers.
- An annual road tax, with total exemptions worth 11.844 billion euros.
- The corporate tax scale, where 206 exemptions and deductions are worth 1.84 billion euros, and apply to 48,248 businesses.
- The regime for VAT remittances has 75 exemptions and tax reliefs, benefiting businesses, professionals and consumers, and is worth 939.1 million euros.
