Greece offering tax relief to businesses to attract investment

Greek parliament

Greek parliament

The Greek government on Thursday introduced a new draft bill offering a reduction in business tax from 28 % to 24 % for 2019, and incentives to link large investments with a reduction in taxable foreign income are some of several incentives for investments.

The bill proposes that dividends tax be reduced from 10 % to 5 %, and it relieves company bonds in official markets from income tax and the solidarity fee.

The bill also provides extensive measures to reduce the burden on households, including the introduction of a basic tax rate of 9 % for workers, contractors and pensioners - instead of the current 22 % - and other measures, including a higher tax exemption per child.

As Prime Minister Kyriakos Mitsotakis had promised, VAT payments for all licenses issued as of January 1, 2006 will gain a 40 % tax reduction in improvements to make buildings more energy-efficient.

Additionally, it also introduces an attempt to crack down on tax evasion, by obliging transactions above 300 euros to be carried out and thus registered by electronic means (from the current 500 euros per transaction).

"In other words, the taxation bill sets the foundations for Greece's economic renaissance," the Finance Ministry said in a statement presenting it on Thursday.

The draft bill, titled "Tax reform with a development prospect for Greece's future," is open for comments by specialists and the public alike, and will be available until 08.00 on November 15.