Capital gains tax

A joint decision by the ministries of Finance and Development paves the way for wealthy foreigners who have transferred their tax residence to Greece to invest in this country. They have three years after applying for a Greek tax number to invest at least 500,000 euros in real estate, stocks, bonds and fixed installations.

As many as 16 changes are being introduced from January 1 in the taxation of all households, enterprises and property owners, mostly concerning reduction that will significantly alter the landscape for local taxpayers. They are the following:

Apart from the reduction of the corporate income tax from 28 to 24 percent and the halving of the tax on dividends from 10 to 5 percent, the government's draft tax bill includes a number of other incentives aimed at encouraging entrepreneurship, attracting highly skilled workers in Greece and bolstering investment activity to accelerate growth.

Greece will offer tax incentives to lure wealthy individuals to move their tax residence to the country as part of draft legislation on tax relief set to be announced on Thursday, a senior government official said.

Greece's conservative government is keen on attracting investments to boost the recovering economy's growth prospects.

Freelance professionals and all personal enterprises in general are the biggest winners of the new tax bill. As of 2020 they will enjoy a reduction in their tax bills amounting to or in some cases even exceeding 1,300 euros each, thanks to the slashing of the basic tax rate from 22 to 9 percent.

Enterprises will pay 30 percent less tax on average based on the changes the government will bring to Parliament through the tax bill to be tabled in November.

In a bid to crack down on tax evasion to the tune of 7 billion euros a year in value-added tax alone, the government is mulling plans to encourage taxpayers to increase online and card transactions so as to increase their tax free threshold.

According to reports, the relevant legislation will be included in a tax bill that will be submitted to Parliament in mid-October.

The government's intention to legislate tax-easing measures and incentives for investments has cultivated great expectations among property market professionals.

Greek businesses will feel some of the tax burden lifted off their shoulders very soon, after Prime Minister Kyriakos Mitsotakis announced on Sunday that corporate tax will be reduced from 28 percent to 24 percent for this year and to 20 percent in 2020, but also that the dividend tax will be halved from 10 to 5 percent next year.

The capital gains tax for property ownership is apparently to be suspended for another year. Although it was voted through in 2013, it has never been properly applied due to the major decline in property prices and the complexity of the legislation.