Greece to reduce taxes, social security contributions over next two years
The Greek government will further reduce taxes and social security contributions for businesses and households, according to a two-year roadmap that was announced by Prime Minister Kyriakos Mitsotakis. Speaking at the start of the 85th annual Thessaloniki International Fair, the plan will help boost the competitiveness of Greek enterprises and bring needed relief to middle class families.
Since taking office in July 2019, the government has announced a series of both provisional and permanent tax cuts and reductions in social security contributions. Under the latest plan, the government will now make permanent a two percentage point reduction in corporate income taxes − to 22% from 24% previously – and introduce new tax incentives to spur consolidation in Greece’s private sector through mergers and acquisitions. Further tax incentives are also being extended to promote investment in digitization, the green economy and energy.
For individuals, the government is extending through 2022 a reduction in social security contributions and a temporary cut in a special social solidarity tax. Other measures include cuts in select value-added taxes, and duties on mobile telephone and pay-TV services. The government has also abolished taxes on intra-family transfers of less than €800,000 and is examining reductions in property taxes that will take effect in 2022.
This year’s Fair, coinciding with the second centennial of Greek Independence, is focused on entrepreneurship, and especially the role played by Greece’s small- and medium-sized businesses.
Greek government cuts taxes, social security contributions
- Suspension of special social solidarity tax extended through 2022.
- 3 percentage point cut in social security contributions extended through 2022.
- Permanent reduction in corporate income tax to 22% from 24%.
- Reduced VAT on transport services, coffee and non-alcoholic beverages, cinemas, tourist packages extended to June 2022.
- Reduced VAT on gyms, dance schools extended to June 2022.
- Suspension of duties on pay-TV services extended to June 2022.
- Taxes on intra-family transfers of up to €800,000 abolished.
- Duties on mobile phone services reduced to 10% from 12-20% currently; abolished for youth below 29 years of age from 1 January 2022.
- Permanent reduction of VAT on animal feed to 6% from 13%.
- Reduction in ENFIA property tax starting in 2022.