Important tax changes for 2025

The Greek tax code for 2025 includes a number of changes, ranging from the taxation of insurance premiums to the fight against tax evasion using new technologies.

The tax authorities' strategy is based on two main areas: tax cuts And increase in incomewith special emphasis on the middle class. This social group constantly suffers from inflation and high tax burden. 2025 is expected to be a critical year as it will determine the scope for further permanent tax cuts. Actions AADE (Ανεξάρτητη Αρχή Δημοσίων Εσόδων – Independent State Revenue Authority) to combat tax evasion, combined with measures to increase revenue, are critical to achieving these goals.

Important tax changes

The first direction includes an extensive package of tax interventions, which will be implemented from 2025 with a total budgetary cost of 1.5 billion euros. According to the Ministry of National Economy and Finance, these interventions are aimed at increasing disposable income and at the same time comply with the European budgetary framework that limits spending. Major tax interventions include:

• Reduced insurance premiums: a decrease of one unit will lead to an increase in wages and a decrease in non-production costs. Since 2019, the overall reduction is 5.4%, with a cost of €440 million per year, benefiting both workers and employers in the public and private sectors.
• Cancellation of business tax: the phase-out, which began in 2024, will end in 2025 for the self-employed and self-employed, at a cost of €238 million.
• Exemption of low pensioners from pharmaceutical expenses: about 132,000 pensioners will no longer contribute to pharmaceutical costs, at a cost of 23 million euros.
• Tax benefits for certain real estate: properties with an area of ​​up to 120 m², rented out long-term, are exempt from income tax for three years, with costs of 3 million euros.
• Health Benefits: exemption from tax on insurance premiums for health policies affecting children under 18 years of age, with costs of 17 million euros.
• Decline ENFIA: ENFIA (Ενιαίος Φόρος Ακινήτων – Unified real estate tax) is reduced by 20% for residential premises of individuals with a taxable value of up to 500,000 euros, with a cost of 18 million euros.
• Cancellation of landline telephone tax: The measure concerns connections to high-speed fiber optic Internet, with a cost of 24 million euros.

Income support

The second pillar includes seven immediate income support measures to strengthen social cohesion and improve citizens' purchasing power:

• Increase in pensions: pensions increase by 2.4%, with costs of 398 million euros. Payments to students of military educational institutions are also increasing.
• Student Housing Allowance: the allowance for students from regional universities increases by 500 euros, reaching 2,500 euros in the case of shared accommodation. The total costs are 15 million euros.
• Increase in compensation: compensation for night work for military personnel is increased, with a cost of 25 million euros.
• Minimum salary: the minimum wage will be further increased in 2025, while civil servants' salaries will be adjusted accordingly.
• Benefits for the armed forces: the allowance for special conditions increases by 100 euros per month, with a cost of 111 million euros for 2025.

Through the above interventions, the government seeks to improve the standard of living of citizens, support the middle class, and create a sustainable and fair economic environment. The year 2025 is expected to be decisive for the formation of a new economic model that will combine development and social justice.

Combating tax evasion

Combating tax evasion remains a top priority for the government and the Ministry of National Economy and Finance, with a focus on reducing the VAT gap. The 11 initiatives implemented in 2023 resulted in an 11.2% increase in VAT revenue in the first nine months of 2024, according to Minister Costis Hadzidaxis.

With the completion of the POS connection to cash registers and the implementation of the myData system, additional VAT revenues of approximately €1.8 billion are expected in 2024.

In 2025, AADE will increase its efforts to combat tax evasion using new digital tools. The myData system will be expanded for income and expense reporting, while mandatory electronic invoicing, digital invoices and digital customer databases will be introduced.

Finally, the State Budget Office in Parliament estimates that the target of collecting an additional €2.5 billion from tax evasion from 2025 is realistic. It is expected that an excess of VAT revenues by 2 billion euros is possible as early as 2024. Additional revenues, according to the responsible authorities, should be directed, first of all, to reducing direct taxes, as this will stimulate an increase in employment.

Source: ΑΠΕ – ΜΠΕ

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