Yesterday, Prime Minister Kyriakos Mitsotakis presented a package of measures aimed at increasing the disposable income of households, which, once New Democracy takes the helm of the country again, will begin to unfold gradually from January 1, 2024. Taxpayers with children will have an annual tax benefit of up to €220 with the tax-exemption increase of €1,000, special vocation levy for self-employed persons and businesses will be reduced starting in 2025, the proof of standard of living quota that 1 in 4 taxpayers suffer every year will be “cut” by 30% but will not be abolished while the insurance contributions will be reduced by an additional percentage point.
The fiscal cost of the measures, which will be implemented gradually over the 4-year period in order not to jeopardize fiscal stability, amounts to 2 billion euros by 2027.
Measures that fell by the wayside
However, two measures that were announced for implementation in the government’s first term, in 2019, are missing from the New Democracy program. These are the reduction of VAT rates from 24% and 13% to 22% and 11% respectively and the further reduction of the income tax rate of legal persons and other legal entities from 22% to 20%.
During the presentation of the New Democracy program, Kyriakos Mitsotakis promised:
Tax-free limit.
Increase from 1 January 2025 of the tax-free allowance by 1,000 euros for families with children. Under this measure, the tax-free limit for taxpayers without children remains at 8,633 euros, for families with one child it increases from 9,000 euros to 10,000 euros, with two children from 10,000 to 11,000 euros, with three children at 12,000 euros and with four children at 13,000 euros. This results in an annual benefit of 90 euros for families with one child and 220 euros for families with more children.
Vocation levy
Gradual reduction of 20% of the vocation levy in 2025, 30% in 2026 and abolition by the end of the four years in 2027. Given that the application fee ranges from 400 to 1,000 euros in 2025 the benefit will be on an annual basis from 80 to 200 euros for freelancers and businesses.
Farmers
Definitive abolition of the professional tax for professional farmers and increase in the number of young professional farmers by profession by 60,000 by 2027.
Contributions
Reduction by one additional unit of social security/insurance contributions and non-salary costs.
Proof of standard of living
Reduction of proof of standard of living taxation limits by 30% on average from 1/1/2025 after the mandatory implementation of myData and the strengthening of electronic transactions.
Businesses
Capitan concentration tax reduction from 0.5% to 0.2%.
Stock transactions
50% reduction in stock exchange tax.
Tax return
New procedure for the immediate refund of VAT with the creation of a new information system, in order to strengthen liquidity in the market.
POS everywhere
New Democracy is committed to combating tax evasion by conducting automatic digital audits, intensifying tax audits and doubling electronic transactions with the universal use of POS for making payments.
στο Google News και μάθετε πρώτοι όλες τις ειδήσειςLatest News
Trump Tariffs Jeopardize Growth: Piraeus Chamber of Commerce
The tariffs, aimed at reducing the U.S. trade deficit, are expected to have both direct and indirect effects on the European economy
EU Condemns Trump Tariffs, Prepares to Retaliate
As tensions escalate, the EU is expected to continue negotiations with Washington while preparing for potential economic retaliation.
The Likely Impact of Trump Tariffs on Europe and Greece
Trump tariffs are expected to negatively affect economic growth in the Eurozone while Greece's exports could take a hit.
Motor Oil Results for 2024: Adjusted EBITDA of 995 mln€; Proposed Dividend of 1.4€ Per Share
Adjusted EBITDA for 2024 was down 33% yoy. The adjusted profit after tax for 2024 stood at 504 million euros, a 43% decrease from the previous year
Cost of Living: Why Greece’s 3% Inflation Is Raising Alarm
Greece appears to be in a more difficult position when it comes to price hikes, just as we enter the era of Trump’s tariffs.
Fitch Ratings Upgrades the Four Greek Systemic Banks
NBG’s upgrade reflects the bank’s ongoing improvements in its credit profile, Fitch notes in its report, including strong profitability, a reduction in non-performing exposures (NPEs), and lower credit losses
Trump to Announce Sweeping New Tariffs Wednesday, Global Retaliation Expected
With Trump's announcement just hours away, markets, businesses, and foreign governments are bracing for the fallout of one of the most aggressive shifts in U.S. trade policy in decades.
Inflation in Greece at 3.1% in March, Eurostat Reports
Average inflation in the eurozone settled at 2.2%, compared to 2.3% in February
Greece’s Unemployment Rate Drops to 8.6% in February
Despite the overall decline, unemployment remains higher among women and young people.
Jerry Kalogiratos Highlights Key Role of Energy Transition and Data Demand in LNG Outlook
Energy transition and the prospects of LNG were discussed at Capital Link’s 19th Annual International Maritime Forum, during a panel discussion with Jerry Kalogiratos (Capital Clean Energy Carriers Corp.)
![ΕΛΣΤΑΤ: Αυξήθηκε η οικοδομική δραστηριότητα κατά 15,6% το Δεκέμβριο [πίνακες]](https://www.ot.gr/wp-content/uploads/2025/03/DSC9655-2-1024x569-1-90x90.jpg)
