Tax increases come into effect in Greece

Greece has accepted reforms including significant pension adjustments and increases to value added tax, an overhaul of its collective bargaining system, measures to liberalise its economy and tight limits on public spending. Today some of the agreed VAT changes come into force.
Below is a summary of the most important changes.

Main changes in Greek VAT:

Goods or services affected

Rate change

Date the change will come into effect

Rice, pasta, pastries, sausage, coffee, tea, sugar, other basic foodstuffs

13%23%

20 July 2015

Restaurant services

13%23%

20 July 2015

Hotel accommodation

6.5%13%

October 2015

Change in VAT rates applicable for Greek islands:

Tier I

Tier II

Tier III

Tier IV

Areas covered 

Ionian islands
Crete
Aegina
Hydra
Several smaller ones

Most popular Aegean islands, including Santorini & Mykonos

Less developed Aegean islands

The most remote islands

What will change

Regular VAT rate to be upheld

30% VAT discount to come to an end. Regular VAT rates to be applied

30% VAT discount to come to an end. Regular VAT rates to be applied

30% VAT discount to be upheld

Date the change will come into effect

Immediately

1 October 2015

1 January 2016

Immediately

Corporate Income Tax

26%29% for 2015

Corporate Income Tax (advance)

80%100%

55%75% for personal companies

Tax on insurance premiums

10%15% (General IPT rate)

Solidarity Tax

1.4%2% for Annual Income between €30,001 - 50,000
2.1%4% for Annual Income between €50,001 – 100,000
2.8%6% for Annual Income between €100,001 – 500,000
2.8%8% for Annual Income €500,001+

Need more information? Contact our expert team in Greece.

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