Greece

Value-added tax (VAT)

The standard VAT rate is 24% (applicable to all goods and services that are not subject to the reduced or super-reduced VAT rate, which are explicitly enumerated in the law).

A reduced VAT rate of 13% applies, inter alia, to ready to eat fresh food, non-alcoholic beverages (without the addition of alcohol in any proportion) and aerated waters, basic types of foodstuff (e.g. oil, coffee, sugars) along with food services supplied by restaurants (with the exemption of alcoholic beverages in any proportion and non-alcoholic beverages, which are subject to the 24% rate; from 1 July 2024, the provision of coffee, cocoa, tea, chamomile, and other infusions, only for take away or delivery, is subject to the 13% rate), infant and child nutrition products packaged for retail sale, bicyclist helmets, items for the safety and protection of infants (absorbent diapers for infants and child car seats), home care services for children, the elderly, patients, and the disabled, accommodation in hotels or similar establishments (including provision of holiday accommodation and letting of places in camping or caravan sites and short-term leases if the lessor is a legal entity or an individual who has at least three properties for short term lease), the transport of persons and their baggage, supply of services by fitness centres and dance schools, tickets to zoos, the import of works of art, collections, or antiquities, and the supply of works of art by their creator or one's successors in title.

A super-reduced rate of 6% is applicable to medicines of CN3003 and 3004 and vaccines of CN3002 intended for human medicine. The aforementioned rate is also applicable, inter alia, to the supply of electricity, gas, and district heating, tickets to theatres, cinemas, concerts, books and children’s books, colouring and drawing books, music books, newspapers, magazines, and e-books, and prepared foods for animals (excluding dog or cat food).

A rate of 4% is applicable to the execution of work intended exclusively for the overcoming or removal of architectural elements and other fixed and non-fixed obstacles limiting the mobility of persons with disabilities, in public or private buildings.

The above VAT rates are reduced by 30% (i.e. they are 17%, 9%, 4%, and 3% respectively) in the Aegean islands of Chios, Kos, Lesvos, Leros, and Samos, under certain conditions.

In addition, COVID-19 vaccines, which have been approved by the European Commission or by other member-states, are subject to 0% VAT.

Supplies of goods and services to VAT-registered persons established in EU countries (intra-Community supplies) are not subject to VAT (zero rated). Exports of goods and services connected to exports to non-EU countries are VAT exempt (zero rated).

Real estate leases are generally exempt from VAT. However, commercial leases and lease contracts for shopping centres and logistics centres may be subject to VAT on the condition that the lessor opts for the taxation of the lease under VAT either prior to or after the commencement of the lease by filing a relevant application. 

Furthermore, VAT will be suspended until 31 December 2025 and real estate transfer tax will be levied on all unsold real estate with a construction permit issued (or revised) from 1 January 2006 onwards, upon relevant application by taxable persons.

VAT rules to the new One-Stop Shop (OSS) scheme and the Import One-Stop Shop (IOSS)

Online sellers, including online marketplaces/platforms, can register in one EU member state, and this will be valid for the declaration and payment of VAT on all distance sales of goods and cross-border supplies of services to customers within the European Union.

The existing thresholds for distance sales of goods within the European Union were abolished and replaced by a new EU-wide threshold of EUR 10,000. Below this EUR 10,000 threshold, the supplies of telecommunications, broadcasting, and electronic (TBE) services and distance sales of goods within the European Union may remain subject to VAT in the member state where the taxable person is established.

Special provisions are introduced whereby online marketplaces/platforms facilitating supplies of goods are deemed for VAT purposes to have received and supplied the goods themselves ('deemed supplier').

In addition, new record keeping requirements are introduced for online marketplaces/platforms facilitating supplies of goods and services, including where such online marketplaces/platform are not a deemed supplier.

The VAT exemption at importation of small consignments of a value up to EUR 22 has been removed. This means all goods imported in the European Union will now be subject to VAT.

A new special scheme for distance sales of low goods imported from third territories or third countries has been created. The IOSS has been created to simplify the declaration and payment of VAT. 

Finally, simplification measures for distance sales of imported goods in consignments not exceeding EUR 150 has been introduced in case the IOSS is not used (special arrangements).

Customs duties

Many goods imported into Greece from outside the European Union are subject to customs duties. The rates of duty are provided by the EU’s Common Customs Tariff.

Excise taxes

Excise taxes are imposed on energy and electricity products (e.g. petrol, natural gas, electricity), manufactured tobacco, alcoholic products, coffee, liquids used in electronic cigarettes, and the tobacco contained in electrically heated tobacco products. The tax rates vary depending on the category of products.

In addition, consumption tax has been introduced on the following products: (i) the substrate or container of nicotine or nicotine and other substances, or other substances without nicotine, in solid form contained in electrically heated non-tobacco products and (ii) the substrate of nicotine or nicotine and other substances in solid form contained in ’nicotine pouches‘.

Environmental taxes

A special plastic bag duty is imposed on consumers per piece of thin plastic bag they use (except for biodegradable bags, which are not subject to this duty). The rate of the duty is 7 cents per plastic carrier bag.

Furthermore, the application of a uniform call rate, at 80 cents per kilogram, to the weight of plastic packaging waste that is generated in each member state and is not recycled was introduced through Council Decision (EU, Euratom) 2020/2053 of 14 December 2020, which was implemented in Greece by L. 4783/2021.

An environmental protection levy of 4 cents (per product) is imposed on the plastic products that are available as packaging of food and beverages during their sale by mass catering companies or by retail companies. In plastic products, the plastic cover or lid is considered as a distinct product, for which the levy is imposed separately.

Moreover, a recycling duty was introduced by virtue of Art. 80 of L. 4819/2021, imposing on consumers as of 1 June 2022 a duty of 8 cents per piece the packaging of which contains polyvinyl chloride (PVC).

These special levies are imposed on consumers at purchase and collected and rendered to the state by every trader who is selling these products. They are subject to VAT. 

Lastly, following Law 5162/2024 (the new Tax Law), the climate resilience fee has been increased, ranging from EUR 0.50 to EUR 5.00 on the hospitality services sector (i.e. main hotel accommodation, rented furnished rooms, properties made available through short-term rentals, in case of self-catering accommodation - tourist furnished villas), which is levied per day of use and per room or apartment.

Uniform Tax on the Ownership of Real Estate Property (ENFIA)

In case of legal entities, a supplementary tax is imposed on the total value of their rights to property at a rate of 5.5‰. Self-used real estate is taxed at the reduced rate of 1‰.

According to the provisions of the new Tax Law 5162/2024, effective from the year 2025, ENFIA for insured individuals' residences will be reduced by 20%, provided that the taxable value of the property does not exceed EUR 500,000. For properties exceeding this value, the reduction will be 10%. To qualify for this exemption, the insurance must cover the previous year and have a minimum duration of three months. If the insurance duration is less than one year, the real estate tax reduction will be applied proportionally.

Real estate transfer tax

Each transfer of real estate, which is not subject to VAT, is subject to real estate transfer tax. The real estate transfer tax is imposed at a rate of 3% on the taxable value of the property (increased by a municipality surcharge to a total rate of 3.09%).

Digital Transaction Duty

Among other transactions, the Digital Transaction Duty is levied on interest-bearing and interest-free loans, as well as all types of credits, including those equated with loans and credit cards, at a rate of 2.4%, with a cap of EUR 150,000 per loan. It is clarified that the Digital Transaction Duty is not imposed on loan interest, bond loans issued under Law 4548/2018, and bank loans.

Capital duty 

Capital duty is levied on any capital accumulation transactions at a rate of 0.2%. Specifically, this duty is imposed on capital accumulation (share capital increase in cash or in kind) by capital companies as defined in the law (e.g. commercial companies, branches of foreign companies [unless established in the European Union]).

Additionally, the share capital increase of Greek Société Anonyme (SA) companies is subject to a 0.1% duty in favour of the competition committee.

It is important to note that the capital duty is not imposed upon the incorporation or establishment of legal entities.

Cruise duty

Effective 1 January 2025, a new cruise duty will be introduced to manage overtourism and support local infrastructure. Specifically, cruise ship passengers will be charged the following fees per visit:

• Santorini and Mykonos:
  • EUR 20 for the period from 1 June to 30 September.
  • EUR 12 for the periods from 1 October to 31 October and from 1 April to 31 May.
  • EUR 4 for the period from 1 November to 31 March.

• Other islands:
  • EUR 5 for the period from 1 June to 30 September.
  • EUR 3 for the periods from 1 October to 31 October and from 1 April to 31 May.
  • EUR 1 for the period from 1 November to 31 March.

Payroll taxes

Employers are liable to submit payroll withholding taxes on monthly salary payments (following the grossing-up to the yearly salary) at the following tax scale:

Reductions may apply depending on the amount of the annual taxable income received by individual taxpayers and by the number of the dependent children the individual taxpayer has.

Benefits in kind are, in principle, subject to payroll taxes. However, to the extent that it is difficult to proceed to an evaluation of such benefits at the time of their granting, no employment withholdings are effected thereon, instead their value (assuming such benefits are taxable) shall be added to the employment income of the beneficiaries and be taxed upon the clearance of the annual income tax return filed by the employees.

Social security contributions

Social security contributions are due on salary and benefits in cash or in kind granted by an employer to its employees, with the exception of specifically enumerated extraordinary benefits of social character (e.g. marriage gifts, birth gifts). More specifically, as per the benefits in kind, said benefits might only be exempted from social security contributions as long as they:

• are offered voluntarily by the employer and for the better serving of the employer's operational needs, also contributing to the increase of the employees' productivity and the better quality of the employee's workplace, or
• constitute a measure adopted for the hygiene and safety of the employees, as well as
• are offered personally to the employees and not in cash.

The imposition of social security contributions depends on the social security fund in which the employee is registered.

As of 1 January 2025, the social security contributions will amount to 13.37% at the level of the employee and 21.79% at the level of the employer, i.e. 35.16% in total. The monthly social security contribution cap for the primary social security fund (EFKA) is currently set at EUR 7,572.62 from 1 January 2025.