The bulletin summarises the key income tax, 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.
Income Tax
Back dated and from the income tax filing of the year 2023, Freelancers as well as sole Entrepreneurs, will be taxed on the higher amount between the actual reported gain from their business and a minimum amount of income calculated on a “deemed” basis. The latter (“deemed income”) will be based on a specific formula considering the exact kind of the performed activity, the number of the years it is performed, the average turnover of the same sector in the market, etc.
New Freelancers and Entrepreneurs, entering the business for up to 5 years can enjoy lower amounts of “deemed” income.
Moreover, Freelancers and Entrepreneurs have the right to not accept the “deemed” income calculation and instead be subject to tax audit by the authorities.
Following the introduction of the “deemed” income calculation of the Freelancers and Entrepreneurs, the lump sum annual amount of the so-called “Freelancers and Entrepreneurs Duty” is reduced between the range of 25% – 50% for the year 2023 (previous amount was Euro 650).
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.
Any contract that potentially includes any term for any kind of payment in advance (either partially or in full) in cash is considered “void” and the property will not be transferred. In addition, a fine equal to 10% of the price with a minimum amount of Euro 10.000 and a maximum of Euro 500.000 will apply in cases of cash settlements.
Individuals who have put three (3) or more properties into short-term rental schemes, will be considered as “entrepreneurs” having the obligations to maintain accounting books, issue invoices, contribute to the statutory Social Security system and be taxed accordingly.
New levy called “transient accommodation fee” is introduced and is calculated at the flat rate of 0,5% of the relative revenue.
For up to two (2) properties, a new time limit of 60 days for the duration of each separate lease agreement is introduced, so they can continue classifying as “short- term”.
The minimum monthly salary for employees up to which social contributions apply is increased as of January 1 st , 2024 to Euro 7.373,53 (the preceding salary cap was Euro 7.126,94).
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.
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 1 st 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 ageing 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.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Ana Berta Lopez
Partner
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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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