The newly elected Prime Minister of Greece delivered his first policy speech in Parliament last week, outlining the government’s program and presenting the legislative agenda until the end of the calendar year. Specific tax reductions have been announced, forming part of the government’s agenda to put an end to austerity measures.
On 30.07.2019, the Greek parliament approved gradual reductions of the annual property tax (ENFIA) imposed on private individuals, depending on the total value of their property and specific improvements to the 120 instalment debt repayment plan which enables also companies and legal entities to benefit from the regime.
Furthermore, the following measures are expected within the next period:
- reduction of the corporate tax rate from 28% to 24% for income earned within FY 2019 and to 20% for income earned within the next fiscal years,
- reduction of the dividend withholding tax rate from 10% to 5%,
- VAT reduction of the standard 24% rate to 22% and of the reduced 13% rate to 11%, as well as suspension of VAT in the building sector,
- reduction of the tax rate for the first bracket of employment income from 22% to 9% and
- gradual reduction of the social solidarity contribution.
