Chrysostomos Tsoufis

The mini-tax bill, which includes various provisions that mostly reduce the “burdens” for households and businesses, will probably go to the Parliament tomorrow, Wednesday.

REAL ESTATE

ENFIA: The discount is doubled to 20% for property owners worth up to €500,000 who insure their property against natural disasters (cumulative for fires, floods and earthquakes).

For properties worth more than €500,000, the discount remains at 10%, as long as they are insured. If the owners of this category neglect or ignore it, they will not be compensated by the State in case of destruction of their property.

CLOSED PROPERTIES : A three-year exemption from rent tax is established for those owners who will open their properties that have been closed until now (and at least for the last 3 years) and put them on the market. Conditions to make them available for long-term lease, not to exceed 120 sq.m and to belong to natural persons.
The exemption also concerns conversions of short-term leases (at least the last 3 years) into long-term ones.

VAT: The suspension of VAT for sales of newly built properties is foreseen for one more year, until the end of 2025.

Capital Gains Tax: Capital gains tax will also be frozen until the end of 2025. It is imposed at a rate of 15% in cases where there is a positive difference (i.e. a higher price) between the purchase price and the subsequent sale of a property.

FREE PROFESSIONALS

End of pre-employment: Abolished from 2025 for all natural persons, i.e. for self-employed, self-employed and self-employed as well as blocks.

Now it will be maintained only for legal entities with a horizon of its abolition in 2027.

Presumed Income: The minimum presumptive income that applies to settlements up to 1,500 inhabitants is reduced by 50% (Today it applies to mainland settlements up to 500 inhabitants and islands up to 3,500 inhabitants)

In addition, the criterion of the maximum salary of an employee as a basis of comparison is transferred to the end, as a field of comparison after the calculation of the other criteria (Today, the turnover and percentage of the salary costs are added to the maximum salary of an employee)

The average turnover of KAD is also increased, with the result that the number of professionals who are burdened with a 5% surcharge on the minimum taxable income when they exceed this turnover is limited.

BUSINESSES

Contributions: They are reduced from the New Year by one unit. 50% concerns the employees’ contributions and 50% the employers’ contributions.

Insurance for natural disasters: It becomes mandatory for every business with a turnover of more than €500,000. Otherwise, they will not be compensated.

Tax incentives for mergers

TAX STATEMENTS

A clear timetable for the start and end of the tax return submission process is established, from March 15 to July 15 each year.

An escalation of the tax deduction is also foreseen in the cases of one-off payment of:

4% for submitting a statement from 15/3 to 30/4
3% for submitting a statement from 1/5 to 15/6
2% for submitting a statement from 16/6 to 15/7

For the first time fines of €2,500 are imposed on the leading executives of public organizations (Governors, Secretaries, Directors) for any delays or errors in sending to the AADE the data necessary for the pre-completion of the tax returns.

PHILOSOPHY

From November 1 tax-free up to €300/month for card tips received by employees and exemption from insurance contributions.
At the same time, it is stipulated that employers who may want to reduce wages by declaring part of them as tips, will pay a fine of 22% on the reduction of regular wages.

I.X.

Insurance for natural disasters: Mandatory for every vehicle. (private or professional use) must be insured against natural disasters. It will apply to every new contract or renewal of an old one.

OTHER SETTINGS

15% exemption on health insurance tax for children
Independent taxation at a rate of 22% for NHS doctors on call. Average benefit €150/month
Exemption from income tax of employers’ financial benefits to new parents up to €5,000 per year, increased by €5,000/child. It is valid for 12 months from the birth of a child

They are exempt from tax on childcare vouchers that businesses provide to their employees.