Greece

Individual - Significant developments

Last reviewed - 21 December 2020

On 12 December 2019, the new tax bill, which introduces several amendments to the Income Tax Code (ITC) and other legislation, was published on the Government Gazette. Among its provisions, the most significant are the following:

  • The introduction of a new tax bracket applying on personal income from 1 January 2020, having a reduced introductory tax rate from 22% to 9% for income until 10,000 euros (EUR), while tax rates corresponding to income above EUR 20,000 are reduced by 1%.
  • The lump-sum taxation and further exemption of foreign tax residents from income tax and inheritance and gift taxes under specified conditions.

On 29 July 2020, Law 4712/2020, introducing the provision of tax incentives to angel investors, was published in the Government Gazette. Furthermore, on 31 July 2020, a special non-dom regime for pensioners was introduced by virtue of Law 4714/2020.

On 27 October 2020, Law 4738/2020 was published, which provides that, especially for 2020, the special solidarity contribution is abolished for all types of income, other than employment income and income from pensions. Furthermore, especially for 2021, the special solidarity contribution is abolished only for income from employment in the private sector.

On 4 December 2020, a new regime for the alternative way of taxing income from salaried employment, as well as from business activity arising in the Greece, for individuals transferring their tax residence to Greece was also introduced, by virtue of Law 4758/2020.

As a result of the COVID-19 pandemic, the Greek government has introduced various tax measures. For more details, see PwC's COVID-19 Updates.