Greece | Employment Tax | 2024 employment tax update

Employment Tax

Greece | 2024 employment tax update

Summary
The bulletin summarizes the key income tax and social security changes that affect individuals/natural persons and are in force as of 1 January 2024. The relative laws are L.5073/ 2023 and 5078/ 2023, both voted at the end of the year 2023.

The Detail

Social security contributions

• The minimum monthly salary for employees up to which social contributions apply is increased as of January 1st, 2024, to Euro 7.373,88 (the preceding salary cap was Euro 7.126,94).

Group Pension Plans

• Contributions (made either by the employees or their employers) to Occupational Funds (in Greek “TEA”) as well as Group Insurance Pension Plans remain tax-free, however as of January 1st 2024, the tax free amount is limited to 20% of the annual gross salaried income. With the preceding provisions of the legislation, there was no limit as regards the amount of the contributions compared to the gross income.
• Grandfathering provisions, as regards the accumulated amounts per person until December 31, 2023 in the context of Group Insurance Pension Plans and TEA, have been implemented.
• Going forward, the amounts that will be distributed to the beneficials/employees from their participation to the Group Insurance Pension Plan and/or TEA, will be subject to tax according to the following scale (the scale considers the aging of the contributions):

Years of Insurance	Tax treatment of periodical payment	Tax treatment of lump sum payment
Till 5 years of insurance	10%	20%
From 5 to 10 years of insurance	7,5%	15%
From 10 to 20 years of insurance	5%	10%
From 20 years and above	2,5%	5%

• With the preceding provisions, amounts paid by the employer for the medical and hospital coverage of its employees in the context of a group insurance policy, were tax exempt up to the amount of Euro 1.500 per employee/per year. With the new provisions, the limit of Euro 1.500 includes also amounts paid for the same reason to TEA voluntary insurance, not only by the employers but also by the employees.

Other changes / issues:

Sale of listed shares
The transaction duty applying on the gross sale proceeds of listed shares in any regulated market or in a multilateral trading mechanism operating in Greece, is reduced from 2% to 1%, regardless of whether the relevant transactions are carried out within or outside the aforementioned trading places.

Spousal income tax returns
Spouses can opt for a separate personal income tax filing, as opposed to the default option which is a joint filing. All a person needs to file separately from his/her spouse, is to file no later than February 28 of the year of the filing, an online application to the tax authorities. Once the application is filed, the separate filing is in effect for all the subsequent years until it is revoked online by the person.

Contact us
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:

Lina Foka
Director

Evangelia Nouskali
Senior Manager

Further information on Vialto Partners can be found here: www.vialtopartners.com

For additional alerts, please visit www.vialtopartners.com/regional-alerts

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Vialto Partners (“Vialto”) refers to wholly owned subsidiaries of CD&R Galaxy UK OpCo Limited as well as the other members of the Vialto Partners global network. The information contained in this document is for general guidance on matters of interest only. Vialto is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will Vialto, its related entities, or the agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.

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Further information on Vialto Partners can be found here: www.vialtopartners.com

Vialto Partners (“Vialto”) refers to wholly owned subsidiaries of CD&R Galaxy UK OpCo Limited as well as the other members of the Vialto Partners global network. The information contained in this document is for general guidance on matters of interest only. Vialto is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will Vialto, its related entities, or the agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.

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