What taxes are planned to be reduced after the elections

Immediate implementation of tax breaks and support measures promised by the New Democracy Party for a four-year period, the extension of the Market Pass, the strengthening of tax breaks for electronic receipts are on the agenda of the new Treasury Department.

From the first day they take office, officials will have to comply with the provisions of a comprehensive bill that will be submitted to Parliament in the last ten days of July and include: benefits for employees, young people, property owners, freelancers and businesses, and Market Pass expansionsince the rise in food prices persists despite the general decline in inflation.

At the same time, the new finance minister will have to make decisions on a number of issues that have been frozen due to two election campaigns, such as the reward that those who report tax evasion will receiveand new conditions interconnection of cash registers with POS. At the same time, it is possible that the new minister will introduce improvements to the regulation of 36 and 72 installments on debts created during the energy crisis, in order to increase the number of beneficiaries.

Measures in the new government’s first multi-tax bill include:

1. Increasing the tax-free limit. For families with children, the non-taxable allowance will increase by 1,000 euros from 1 January 2024 at a budgetary cost of 77 million euros. The measure concerns income generated from next year by employees, pensioners and professional farmers and will result in an additional €90 tax reduction per year for those with one child and €220 for taxpayers with two or more children. Employees and retirees with dependent children will see an increase in their monthly earnings from January 2024 through tax cuts, and farmers will see benefits by filing a tax return in 2025. It is noted that with an increase of 1,000 euros, a tax-free limit of 10,000 euros is set from 9,000 euros, which applies today for married couples with one dependent child, to 11,000 euros from 10,000 euros for taxpayers with two children, in €12,000 from €11,000 for those with three dependent children and up to €13,000 from €12,000 for taxpayers with four children. As a reminder, the tax-free limit for taxpayers without children is 8,636 euros.

2. The annual professional activity tax (tέλους επιτηδεύματος)* will be phased out. It will be reduced by 20% in 2025, 30% in 2026, and completely abolished in 2027, at a cost of €89 million in 2025, €222 million in 2026 and €443 million in 2027. This measure was introduced during the period of the memorandums and burdens professionals and businesses from 400 to 1000 euros per year.

**Тέλους επιτηδεύματος is a Greek expression that means “annual tax on professional activities”. This is an additional tax that is levied on entrepreneurs and freelancers who keep category B and C accounts. The amount of this tax depends on the location and turnover of the business, as well as on the number of employees. Certain categories of taxpayers are exempt from this tax if certain conditions are met.

3. Imputed income – imputed expenses or “tekmiriya”. From January 1, 2025, taxes on housing, cars and other property will be reduced by an average of 30% with the mandatory introduction of myData e-books and the expansion of the use of electronic transactions.

4. Reduced property tax ΕΝΦΙΑ. From 2024, those who annually insure their property against natural disasters (fires, floods, earthquakes, etc.) will receive a 10% discount on ΕΝΦΙΑ. The measure, which costs about 40 million euros per year, will benefit property owners with mortgages, as home insurance is mandatory for borrowers. According to the data, out of 6,371,901 houses, 1,074,050 are insured.

5. Enterprises. Decreased tax on capital accumulation from 0.5% to 0.2%.

6. Exchange operations. 50% reduction in exchange tax from 0.2% to 0.1%

7. An 8% increase in the minimum guaranteed income. The annual budget allocated for this will amount to 49 million euros.

8. New reduction in insurance premiums. The cost, according to the previous government, is 230 million euros in 2025, the first year of the new reduction, with equal costs in 2026, and 509 million euros in 2027.

9. Increasing maternity benefits for the self-employed and farmers. Budget – 40 million euros per year.

10. Gradual (partial) exemption of former EKAS beneficiaries from their participation in pharmaceutical expenses. Budget – 38 million euros per year.

11. Youth Pass for young people who have reached the age of majority. Budget – 30 million euros per year. Start of the program – 2024

12. Help for families. New position for civil servants. The allowance for one child will increase from 50 to 70 euros, for two children from 70 to 120 euros, for three children up to 170 euros and for four children up to 220 euros.

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