Greek Tax System Overview in 2025

Greece maintains a comprehensive and evolving tax framework designed to support economic stability, attract foreign investment, and ensure fair revenue collection. As of 2025, the country continues to implement reforms aimed at simplifying compliance, reducing burdens on individuals and businesses, and aligning with European Union standards. This guide provides an updated overview of Greece’s key taxes, rates, exemptions, and special zones relevant to both residents and international investors.

Key Taxes and Rates in Greece

All businesses operating in Greece must register for taxation and obtain a Greek tax identification number (AFM). Companies are required to file returns and pay applicable taxes, including corporate income tax and advance payments, within stipulated deadlines based on their legal structure and fiscal year.

Corporate Income Tax

Since May 2019, the standard corporate income tax rate in Greece has been reduced to 22%, one of the lowest in the Eurozone. Resident companies are taxed on their worldwide income, while non-residents are liable only on income sourced within Greece. This competitive rate supports business growth and makes Greece an attractive destination for foreign direct investment. Certain incentives may apply for reinvested profits or research and development activities.

Personal Income Tax

Greek tax residents—regardless of nationality—are subject to personal income tax on their global earnings. Non-residents are taxed solely on income derived from Greek sources. The system uses a progressive tax scale, with recent adjustments improving affordability for lower- and middle-income earners.

As part of broader tax reforms effective from January 1, 2020:

• Taxpayers earning up to €10,000 annually now face a reduced rate of 9% (down from 22%).
• All tax brackets saw a 1-percentage-point reduction across the board.
• A Solidarity Contribution surcharge applies to incomes exceeding €12,000, ranging from 2.2% to 10% depending on total income.

The current progressive personal income tax structure is as follows:

To support families, Greece offers tax-free thresholds based on the number of dependent children:

• One child: €9,000 exemption
• Two children: €10,000 exemption
• Three children: €11,000 exemption
• Four or more children: €12,000 exemption

This family-oriented policy aims to reduce the tax burden on households and encourage long-term residency.

Value Added Tax (VAT)

Greece applies a multi-tier VAT system, with reduced and super-reduced rates for essential goods and services. Standard VAT rates as of 2025 include:

• 13% rate: Applies to basic food items (oil, sugar, coffee), non-alcoholic beverages, restaurant meals (excluding alcohol), infant nutrition products, bicycle helmets, baby care items (diapers, car seats), healthcare services for vulnerable groups, hotel accommodations, transport services, fitness centers, dance schools, art sales by creators or heirs, and pandemic-related protective gear like masks and gloves.
• 6% super-reduced rate: Covers electricity, gas, district heating, cultural event tickets (theaters, concerts, zoos), sports events, printed/electronic books, newspapers, magazines, animal medicines (excluding pet food), human vaccines (CN3002), and certain pharmaceuticals (CN3003/3004).

In specific island regions—including Chios, Kos, Lesbos, Leros, and Samos—VAT rates are further reduced by 30% under special regional provisions, resulting in effective rates of 17%, 9%, and 4% respectively.

Additionally, a temporary exemption on the 24% VAT for new property transfers was introduced in 2019 and extended through the end of 2024, supporting real estate market activity and housing development.

Stamp Duty

Stamp duty in Greece is now limited to select transactions and calculated as a percentage of transaction value:

• Rental agreements for real estate: 3.6%
• Commercial loans: 2.4%
• Private loans: 2.4%–3.6%, depending on terms

This tax is generally paid upon execution of contracts and varies slightly by region and documentation type.

Excise and Luxury Taxes

Greece levies excise duties on specific goods, particularly those impacting public health or energy consumption. These include:

• Fuels (gasoline, diesel)
• Natural gas and electricity
• Tobacco products and e-cigarettes
• Alcoholic beverages
• Heated tobacco products and vaping liquids
• Coffee (in certain forms)

Luxury taxes target high-value personal assets such as fur garments, jewelry, private aircraft, and precious metals. Notably, since 2019, families with four or more children are exempt from luxury tax on personal vehicles, reflecting social equity considerations.

Capital Gains Tax

Capital gains arising from the sale of assets are taxable in Greece. The standard rate is 15% for both:

• Sales of shares in unlisted companies
• Transactions involving listed company stocks, provided certain holding period and regulatory conditions are met

Exceptions may apply for primary residences and long-term holdings under specific reinvestment rules.

Real Estate Transfer Tax

A flat 3% tax is imposed on the taxable value of property during ownership transfer. This applies to all real estate sales unless specifically exempted under government incentive programs.

Annual Property Tax

Property owners must pay an annual real estate tax based on factors such as location, size, age, usage (residential vs. commercial), and market value. The amount is typically included in utility bills and administered through the Independent Authority for Public Revenue (AADE).

Digital Services Tax and Carbon Pricing

As of 2025, Greece does not impose a standalone digital services tax. However, it complies with EU-wide initiatives, including the Digital Markets Act and upcoming DAC7 reporting requirements for digital platforms.

While there is no national carbon tax, Greece adheres to the EU Emissions Trading System (ETS) and participates in the EU Carbon Border Adjustment Mechanism (CBAM), whose transitional phase began October 1, 2023. Importers of cement, iron, steel, aluminum, fertilizers, hydrogen, and electricity must report embedded emissions starting in 2025, preparing for full financial obligations in later phases.

Special Economic Zones and Industrial Areas

Greece does not have traditional free-trade zones but promotes industrial development through designated parks and bonded logistics areas offering streamlined procedures, environmental oversight, and dispute resolution frameworks.

Industrial Parks

Managed by the Hellenic Agency for Investment and Entrepreneurship (formerly ETVA), Greece operates 27 industrial parks hosting approximately 2,300 companies. These hubs foster manufacturing, innovation, and export-oriented ventures, especially in sectors like renewable energy, agri-tech, and advanced materials.

Bonded Warehouses and Free Zones

Designated bonded facilities exist in major ports such as Piraeus, Thessaloniki, and Heraklion. They allow for customs suspension on imported goods undergoing repackaging, sorting, labeling, and light assembly before re-export or domestic clearance.

PROCOM Bonded Zone

Located in Serres, Northern Greece, PROCOM is the country's largest inland logistics center. It provides integrated services including warehousing, distribution, wholesale, and retail operations under customs control, serving Central and Southeastern European markets.

Astakos Port-Bonded Industrial Park

Situated on the western coast, this strategic site supports maritime logistics, raw material processing, storage, and final product manufacturing. Its proximity to international shipping lanes enhances connectivity for import-export businesses.

Sriasos Bonded Logistics Park

Planned as a multi-functional zone combining warehousing, logistics, light industry, distribution, and R&D capabilities, Sriasos aims to become a model for sustainable industrial development with green infrastructure and smart technology integration.

Key Administrative Regions and Legal Frameworks

Greece is divided into 13 administrative regions. The Attica region, home to Athens, offers targeted support for startups, tech innovation, and digital transformation projects through grants, incubators, and public-private partnerships. Local regulations promote entrepreneurship while ensuring compliance with labor, tax, and environmental laws.

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