Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors

Greece: Finance ministry specifies tax breaks, aid for households, businesses

The Greek Finance Ministry specified on Monday the measures announced by Prime Minister Kyriakos Mitsotakis in Thessaloniki to support households and businesses from the impact of the pandemic, totalling 42.7 billion euros.

Finance Minister Christos Staikouras said that the abolition of tax on parental gifts of property, cash and shares of up to 800,000 euros would promote growth. He also said that the rules for the returnable advance given to businesses to tide them through lockdowns mean that 28 pct of businesses will return one quarter of the sum received, 39 pct will return one third and 33 pct will return 50 pct.

There is also a 15 pct discount for those that return the sums due by December 31, 2021, otherwise the sum is paid back in 60 installments from January 2022.

In addition, as an incentive for electronic transactions that will apply from January 1, 2022 until 2025, 30 pct of electronic spending for 18 categories of services will be subtracted from taxable income, up to the sum of 5,000 euros. These will include lawyers, architects, private detectives, funeral homes, air-conditioning, heating and plumbing contractors, nurses, carpenters, cleaning and building maintenance, childcare, car rental, taxis, aluminum workers, tailors and clothing repair, photographers and other freelance occupations.

Receipts from doctors, dentists and vets will count doubly toward the 30 pct income limit that tax payers must cover with electronic receipts to not have to pay additional tax, but not the cost of pharmaceuticals and hospital bills.

There will also be a complete overhaul of the “tax lottery” where 1,000 tax payers can win up to 1,000 euros each with every lottery draw. The new system will increase the chances of winning for those on lower incomes and the prizes will rise each month and reach up to 50,000 euros. In addition, there will be a speciall lottery at Christmas with prizes of up to 100,000 euros.

There will also be a discount for green and digital investments and incentives for mergers and takeovers and the ministry said it will increase the heating oil subsidy by 20 pct.