Greece Golden Visa: Parliament Discusses Tax Reforms and Incentives to Boost the Economy in 2025

The Greek Parliament has initiated discussions on the draft state budget for 2025, introducing significant tax changes and incentives aimed at stimulating the domestic economy and investments.

Key Tax Adjustments

The draft budget includes measures to balance taxes and support citizens:

• A 13% VAT rate applied to a broader range of sectors.
• A temporary tax imposed on short-term rentals, targeting owners with three or more rental properties.
• A 0.5% reduction in social security contributions for both employees and employers, effective January 1, 2025.

Investment Support and Corporate Tax Relief

To encourage investments, the draft increases the startup capital threshold eligible for tax incentives to €900,000 ( from $987,000).
Additionally, the minimum capital required to qualify for a 30% corporate profit tax reduction will be lowered to €100,000 ( from $109,000).

The draft also extends the tax incentives for commercial patents.

Real Estate Tax Incentives

Property owners with properties under 120m² (previously vacant or used for short-term rentals) will be exempt from income tax for three years if they switch to long-term leasing.
The VAT suspension on newly constructed buildings has been extended until the end of 2025.

Enhanced Support for Small and Medium Enterprises

The draft proposes increasing the income deduction rate to 315% for investments in SMEs focused on technology and knowledge.
Furthermore, companies undergoing restructuring will be allowed to carry forward tax losses to subsequent years, reducing financial burdens and encouraging innovation.

Aiming for Growth and Stability

The 2025 draft budget focuses not only on economic growth but also on fostering a transparent investment environment that supports both businesses and individuals. With these measures, Greece aims to continue attracting foreign investment and strengthening its position within the region.