Taxes in Greece: Full Guide 2025

Overview of the Greek Tax System

The Greek tax system is structured to tax individuals, businesses and consumption while providing incentives for economic growth and foreign investment. It is regulated by various tax authorities, with the Independent Authority for Public Revenue (AADE) playing a central role in administration and enforcement. The following is a detailed summary of taxation in Greece.

The Greek tax system follows some basic principles:

• Greek tax residents are taxed on their worldwide income, while non-residents are taxed only on income earned in Greece.
• Individuals pay income tax at progressive rates, while corporations are subject to a flat corporate tax rate.
• Taxpayers are responsible for declaring their income and filing returns through the Taxisnet platform.
• Greece levies value-added tax (VAT) on goods and services, as well as excise taxes on certain products such as fuel, tobacco, and alcohol.
• Special tax breaks exist for start-ups, R&D investments, renewable energy and tourism-related businesses.

Corporate Tax in Greece

Corporate taxation in Greece is structured to tax the profits of legal entities operating within its jurisdiction.

As of 2025, the standard corporate income tax rate in Greece is 22%. This applies to all types of legal entities, including corporations (AE), limited liability companies (EPE) and partnerships (OE, EE). Greek branches of foreign companies are also taxed at 22% on Greek source profits.

Corporate tax losses can be carried forward for up to five years: this allows companies to offset future taxable profits and reduce their tax liability in profitable years.

Greece offers several tax incentives to encourage investment and economic growth:

• Innovation and Business Transformation: Law 5162/2024 introduces tax incentives to promote innovation and facilitate business transformation, providing benefits to companies engaged in innovative activities or undergoing restructuring.
• Job creation incentives: Under certain conditions, employers may obtain a 50% increase in the tax deductibility of contributions, up to 14 times the minimum wage of an unmarried employee over 25 years of age, for each new job created.
• Research and development (R&D) incentives: Companies that invest in R&D activities can benefit from enhanced tax deductions, including a 130% super deduction for qualifying expenses.
• Maritime industry incentives: Ships built in Greek shipyards and registered under the Greek flag are exempt from taxation for the first six years. In addition, there’s a 50% tax reduction for vessels operating regular routes between Greek and foreign ports or exclusively between foreign ports.
• Incentives for returning residents and digital nomads: A new law offers a 50% tax exemption for the first seven years to Greeks living abroad and digital nomads who relocate to Greece, with the aim of attracting talent and investment back to the country.

VAT (Value Added Tax) in Greece

In Greece, Value Added Tax (VAT), locally known as “Fóros Prastithémenes Axías” (ΦΠΑ), is a consumption tax applied to most goods and services.

VAT in Greece is applied at different rates depending on the type of goods and services provided. The standard VAT rate is 24%, which applies to most goods and services in the country. However, there are reduced rates for essential goods and services.

• 24% – Standard rate: Applies to all goods and services not specifically listed under reduced or super-reduced rates.
• 13% – Reduced rate: Includes certain food, water, some medicines, medical equipment for the disabled, hotel accommodation, passenger transport and certain social services.
• 6% – Super reduced rate: Covers certain medicines, books, newspapers, periodicals, certain admissions to cultural events and utilities such as electricity and gas.

In addition, a zero rate (0%) is applied to intra-community and international air and sea transport.

There is no minimum threshold for VAT registration in Greece, and any individual or business that carries out economic activities in the country is required to register for VAT.

The frequency of filing VAT returns in Greece depends on the type of accounting records kept:

• Monthly returns: Required for businesses that keep double-entry books.
• Quarterly returns: Applicable to businesses keeping single-entry books and foreign VAT-registered entities.

VAT returns must be filed electronically through the TAXISnet portal. The deadline is the last working day of the month following the end of the reporting period. For example, for a tax period ending in March, the VAT return is due by the last working day of April.

Personal Income Tax

In Greece, personal income tax is based on an individual’s residency status and the type of income earned.

Individuals who spend more than 183 days in Greece during a tax year are considered tax residents. They are taxed on their worldwide income, regardless of where it is earned.

Individuals who do not meet the residency criteria are taxed only on their Greek-source income (such as income from Greek employment, real estate, or business activities in Greece).

Greece applies progressive tax rates to earned income, pensions and business profits:

For example, if you earn €25,000 per year:

• The first €10,000 is taxed at 9% (€900)
• The next €10,000 at 22% (€2,200)
• The remaining €5,000 at 28% (€1,400)
• Total tax owed: €4,500

Different types of income are subject to separate taxation.

These taxes are usually deducted at source before the income is received.

Rental income is taxed at progressive rates ranging from 15% to 45%:

In order to reduce the overall tax burden, Greece offers various deductions and tax credits. These deductions and credits are designed to support lower and middle income taxpayers while encouraging essential expenses such as healthcare and education.

For example, employees and pensioners can benefit from a tax credit of up to €777, which gradually decreases for higher incomes. Medical expenses, education costs and disability-related expenses may also qualify for deductions, provided they meet certain conditions. Families with dependent children receive additional tax allowances based on the number of children.

Examples of tax credits and deductions that reduce the total tax burden are:

• Employment tax credit: Up to €777 for those earning less than €20,000.
• Medical expenses: Taxpayers can deduct a portion of their medical and hospital expenses.
• Education expenses: Private school tuition and university fees may be deductible under certain conditions.
• Family and child allowances: Parents receive tax credits for dependent children.
• Charitable Contributions: Donations to approved charities may reduce taxable income.
• Disability Tax Allowance: Individuals with at least 67% disability qualify for additional tax relief.

The tax year in Greece follows the calendar year (January 1 – December 31).

Personal income tax returns must be filed electronically through the TAXISnet platform. The tax return deadline is usually June 30 of the following year.

Income tax is usually paid in several installments.

Property Tax in Greece

Greece property tax affects both individuals and businesses, covering everything from residential homes to commercial properties.

In Greece, property owners are subject to several property taxes, the most important of which is the Uniform Property Tax (ENFIA). ENFIA applies to both individuals and corporations and is calculated based on the size, location, age and other characteristics of the property.

ENFIA consists of a main tax, which is determined by the location, surface area, use and age of the property, and a supplementary tax, which applies to individuals owning properties valued at more than €400,000 and to companies owning properties.

ENFIA rates range from €2 to €13 per square meter, depending on the objective value of the property. High value properties and commercial properties are subject to additional progressive rates.

Both residential and commercial real estate in Greece are subject to several other specific tax regimes covering acquisition, ownership and income generation:

• Real Estate Transfer Tax (RETT): When purchasing residential or commercial property, buyers are liable for a 3% transfer tax on the value of the property. An additional municipal levy of 0.09% applies, bringing the total to 3.09%.
• Municipal taxes: Municipalities levy an annual tax, typically ranging from 0.025% to 0.035% of the property’s value, which is often included in utility bills.
• Rental Income Tax: Income from the rental of property is taxed progressively at 15% (up to €12,000), 35% (€12,001 – €35,000) and 45% (over €35,000).

Foreigners owning property in Greece may be subject to some additional tax obligations and considerations that differ from those of Greek residents. These differences mainly relate to tax residency, ownership structure and corporate real estate holdings.

Inheritance Tax in Greece

Inheritance tax in Greece is levied on assets transferred upon the death of an individual, with rates and exemptions varying according to the relationship between the deceased and the heir.

Greek inheritance tax rates are divided into three categories, reflecting the closeness of the relationship between the deceased and the heir:

• Category A: Spouses, children, grandchildren, and parents
  • Up to €150,000: 0%
  • €150,001 – €300,000: 1%
  • €300,001 – €600,000: 5%
  • Over €600,000: 10%
• Category B: Siblings, nieces, nephews, grandparents, and great-grandchildren
  • Up to €30,000: 0%
  • €30,001 – €100,000: 5%
  • €100,001 – €300,000: 10%
  • Over €300,000: 20%
• Category C: All other relatives and non-relatives
  • Up to €6,000: 0%
  • €6,001 – €66,000: 20%
  • €66,001 – €195,000: 30%
  • Over €195,000: 40%

Greek law provides for specific exemptions to reduce the tax burden on immediate family members:

• Heirs may be exempt from inheritance tax on a primary residence valued at up to €200,000 for each minor child and €250,000 for the surviving spouse, provided certain conditions are met.
• Funds in joint bank accounts are automatically transferred to the surviving account holder without incurring estate tax, unless the account is held in a non-cooperative tax jurisdiction.

Heirs are required to file an inheritance tax return within nine months of the date of death if the deceased died in Greece, or within one year if the deceased died abroad or the heir resides abroad.

Special Taxes and Excise Duties

Greece imposes several special taxes on certain goods, services and activities in addition to the standard VAT and income taxes.

These taxes are levied on fuel, alcohol and tobacco, plastic bags, and luxury goods, for example, to help regulate consumption, support public funding, and promote environmental sustainability.

Of note are the tourism-related taxes that Greece has implemented:

• Climate Resilience Tax: formerly known as the accommodation tax, this tax applies to all types of accommodation, including hotels and short-term rentals like Airbnb, to fund climate change prevention and support local communities. The tax varies by accommodation type and season, ranging from €2 per day (low season, November to February) to €8 per day (high season, April to October).
• Cruise Passenger Tax: Starting in 2025, a €20 fee will be charged to cruise passengers disembarking on popular islands such as Santorini and Mykonos during the high season to combat overtourism and its environmental impact.

Other special taxes and excise duties in Greece include:

• Luxury Goods Tax: Additional taxes on luxury items, including high-end vehicles, private aircraft and large yachts.
• Coffee: An excise tax is levied on coffee products at a rate of €3 per kilogram for roasted coffee and €2 per kilogram for unroasted coffee.
• Electronic cigarettes: A tax of €0.10 per milliliter is levied on refill liquids used in electronic cigarettes.
• Plastic bags: A special tax of €0.07 per thin plastic carrier bag will be imposed to reduce plastic waste. Biodegradable bags are exempt from this tax.
• Plastic packaging waste: An environmental charge of €0.04 per product is levied on plastic products used as packaging for food and beverages sold by restaurants and retailers.
• Fuels: Excise taxes are levied on energy products such as gasoline, diesel and natural gas. The rates vary depending on the type of fuel and its intended use.
• Cigarettes: There is an ad valorem excise tax of 26% of the retail price, a specific excise tax of €82.5 per 1,000 cigarettes, and a minimum excise tax.
• Beer, wine and other fermented beverages, spirits

Tax Filing and Deadlines in Greece

In Greece, both individuals and businesses are required to file annual tax returns within specified deadlines, primarily through the online platform Taxisnet.

Taxpayers must obtain a tax identification number (AFM) and register with Taxisnet to access online services. Once registered, users can complete and submit their tax returns electronically, streamlining the filing process.

Personal income tax returns must be filed by June 30 of the following year.

Corporate income tax returns are due between March 15 and July 15 following the end of the tax year. The specific deadline within this range depends on the legal form and accounting practices of the business.

Greece imposes penalties to encourage timely and accurate filing.

Tax Incentives for Businesses and Foreign Investors

Greece actively encourages foreign investment through a number of tax incentives, particularly in sectors such as tourism, technology and renewable energy.

Key initiatives include the Investment Incentives Law (Law 4399/2016), which offers various benefits to both domestic and foreign investors, including the following:

• Tax exemptions: Reducing taxable income by exempting a portion of profits from qualified investments.
• Cash Grants: Direct financial assistance for specific investment projects.
• Leasing subsidies: Support for leases of new machinery and equipment.
• Wage subsidies: Financial support for job creation related to the investment.
• Tax Rate Stabilization: Guarantee of stable income tax rates for a period of up to 12 years from the completion of the investment plan.

The amount of support varies according to the region and the size of the company, with aid intensities ranging from 15% to 80% of eligible expenses.

Other incentives are specific to priority sectors that contribute to sustainable economic development, including tourism, technology and renewable energy:

• Tourism: Investments in tourism infrastructure, such as the development of new hotels, resorts and related facilities, are eligible for enhanced incentives under the Investment Incentives Law.
• Technology: The law includes a special scheme for the digital and technological transformation of businesses, which encourages investment in advanced technologies and innovation.
• Renewable Energy: Greece offers incentives to promote e-mobility, including subsidies for the purchase of electric vehicles and related charging equipment, as well as tax incentives for renewable energy projects.