The tax burden for Greek citizens will fluctuate depending on their profession and incomes for the 2023-24 season, as some will have to fork out more money while others will see a decrease in their financial obligations to the tax services, according to the Hellenic Revenue Authority (IAPR).
The categories who will experience a notable drop in their taxes include freelancers declaring net profits exceeding the minimum taxable income; those who have made new hires; individuals who renovated their properties; and public employees receiving additional compensation for overtime, grants, and special allowances.
In contrast, the tax bill will be inflated for freelancers, self-employed individuals, and sole proprietorships that have in the past reported very low or even zero incomes.
Regarding freelancers, self-employed individuals, sole proprietorships with incomes above the minimum taxable income, this year’s tax liability will drop by €325 due to a 50% reduction in the business tax fee (from €650 to €325). If the businesses have a linked branch or subsidiary, an additional €300 reduction applies (the fee decreases from €600 to €300).
The tax for professionals and small/medium-sized enterprises (SMEs) that increased their staff for at least three months within 2023 will see a relief of up to €1,000. They are fully exempt from the business tax fee, resulting in savings of up to €1,000, depending on the type and location of their company. Professionals and businesses with gross incomes up to €2 million annually, which increased the number of full-time employees by at least 3/12 compared to the previous year, are also eligible for this relief.
Public servants who received additional pay for overtime, grants, and special allowances in 2023 will be exempt from solidarity contributions due to the abolition of this measure. Since solidarity contributions for additional and extraordinary earnings are not deducted at the time of payment but during the declaration settlement, the amounts saved range from €22 to €176, depending on the amount of extra compensation received.
Taxpayers who incurred expenses for home renovation and repairs will receive a tax relief of up to €1,600 in this year’s income tax. According to the regulations for renovation or repair expenses carried out between 2022 and 2023, the tax deduction reaches 40%, with a maximum spending limit of €16,000.