Reductions in tax burdens for businesses, freelancers, farmers, restaurant workers and income earners, as well as a reduction in insurance contributions for all salaried employees in the public and private sectors, among other things, are provided for in the new tax bill that is expected to be put to public consultation this year week from the Ministry of National Economy and Finance.

According to the Free Press, the 9+1 measures to reduce tax and other burdens that will be included in the government’s tax bill provide for the following:

  • Abolition of the pretension fee of 325 euros for tradesmen, artisans and freelancers with sole proprietorships subject to the taxation presumptions of Law 5073/2023, as well as all those who are employed in dependent labor relationships and collect their wages by issuing service receipts to their employers (for workers with “blocks”).
  • Improvement changes in the provisions of Law 5073/2023 that provide for the determination of the taxable income of individual businesses based on presumptions. The changes that were decided provide that:
  • H 50% reduction of the minimum amount of net income which currently applies to settlements with a population of eas 500 inhabitants and currently occupies 11.4% of the population will also apply to settlements belonging to municipal communities with a population of up to 1,500 inhabitants. Thus the reduction will occupy 18% of the population.
  • In the event that in an enterprise the maximum annual wage paid is higher than the annual minimum wage of the private sector, the addition of criteria of payroll costs and turnover it will not be done on the maximum salary, but on the minimum, with any increments due to three years. Then the amount resulting from this addition will be compared with the amount of the maximum annual salary paid and whichever of the two amounts is the greater will be taken into account as the minimum net presumptive income.
  • Tax exemption for vacant or short-term rental properties to be made available for long-term leases.Any owner who makes available, for at least a three-year long-term lease, a residence that he owns and which has been vacant for at least 3 years (as shown by the E2 form) or is on a short-term lease for at least 3 years, will be exempt from income tax for the rents he will collect in the next three years. The exemption concerns residences up to 120 sq.m. belonging to natural persons. The time period during which owners are given the opportunity to take advantage of this provision started as early as September 8, 2024 and will end on December 31, 2025.
  • Abolition of the landline fee 5% for optical fiber connections with a speed equal to or greater than 100 mbps.
  • Exemption from the 15% premium tax on health policies for children up to 18 years of age.In the case of a family or group contract, the tax is reduced in proportion to the number of minor members it covers.
  • Tax relief for voluntary business benefits for employees who are new parents.Will not be subject to personal income tax, voluntary financial benefits of the employer which are provided to a new parent for a period of up to twelve months from the acquisition of a child, up to the amount of 5,000 euros per year, increased by an additional 5,000 for each dependent child.
  • 20% reduction in ENFIA for homes insured against damage from natural disasters. The maximum reduction rate of ENFIA for houses insured against the risks of flood, fire and earthquake is doubled from 10% to 20%. The measure will apply to homes with a taxable value of up to 500,000 euros.

Homes with a taxable value of more than 500,000 euros that are insured against the risks of flood, fire and earthquake will continue to have a 10% discount in ENFIA in the following years.

  • Independent taxation of NHS doctors on call at a rate of 22%.
  • Establishment of a tax-free limit of 300 euros per month for tips.A special tax-free limit is established for tips paid to employees of catering businesses and the provision of health and social care services. The tax-free amount is set at 300 euros per month and will be valid from November 1, 2024 onwards. Gratuities in excess of the tax-free amount will be subject to income tax withholding and will be added to each employee’s other taxable income to ultimately be taxed based on the income tax scale. Gratuities will also be exempt, regardless of their amount, from any insurance deduction.
  • 1% reduction in insurance contributions from 1/1/2025of which 0.5% from employee contributions and 0.5% from employer contributions. For public sector employees, the reduction will concern the monthly withholding of the Health sector contribution, the percentage of which will drop from 2.55% of gross earnings to 2.05%.