New Greek Government planning deep Tax cuts
Following its recent election victory, the New Democratic Government in Greece will bring forward legislation for a wide range of tax cuts, including a substantial reduction in corporate tax and value-added tax relief, Prime Minister Kyriakos Mitsotakis announced on July 7, 2019.
The New Democratic Party’s tax program includes the following measures, among others:
- A reduction in corporate tax from 28 to 20 percent over a period of two years;
- A reduction in withholding tax on dividends from 10 to five percent;
- A lowering of social security contributions;
- A reduction in the standard and reduced rates of VAT from 24 and 13 percent, respectively, to 22 and 11 percent;
- A VAT exemption on construction services for a three-year period;
- A 30 percent reduction in the unified property tax known as ENFIA for all property owners;
- A reduction in the lowest income tax bracket from 22 to nine percent on income up to EUR10,000, and a cut to the top tax rate, which is currently 45 percent.
The tax measures were discussed at the new Government’s first cabinet meeting and the introduction of a tax reform bill is expected to be among the Government’s priorities.