All tax changes starting October 1st

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All tax changes starting October 1st

By Prokopis Chatzinikolaou


The new government bill, which will be submitted to the Parliament within the week contains at least 12 favorable adjustments. All the measures will be valid immediately and more specifically as of October 1 and lead to a tax reduction for households and businesses.


At the same time, surcharges are limited with a power subsidy for all citizens, according to the government’s announcement. Amongst the really important measures is the elimination of the tax on parental grants and donations for amounts up to 800,000 Euro. Also, the capital concentration tax is reduced to half while the reduced VAT for transportations, coffee and non-alcoholic beverages, cinemas and tourist packages is extended until June 2022.


What will the bill stipulate?

  1. An increase in the tax-free limit for parental grants and donations to relatives of the first category (spouses, people who have entered into a civil union, children, grand-children and parents) from 150,000 Euro to 800,000 Euro. If the value of the parental grants or donations exceeds 800,000 Euro per natural person, then a tax of 10% will be imposed. At the moment, the scale for parental grants, donations, inheritances for first-degree relatives is tax-free up to 150,000 Euro and then a tax of 1% is imposed for the next 150,000 Euro, 5% for the part from 300,000 to 600,000 Euro and 10% for a value over 600,000 Euro. For inheritances, the coefficients remain unchanged from 1.5% to 10%, with an exemption covering the first 150,000 Euro. The 800,000 Euro tax-free limit concerns both immovable and movable property (shares, bonds, businesses, cash).
  2. An extension of the reduced VAT coefficients from 24% to 13% on transportations, coffee and non-alcoholic beverages, cinemas and tourist packages until June 2022.
  3. A reduction in the VAT coefficients for gyms and danse schools from 24% to 13% as of October 1, 2021 until June 2022.
  4. A reduction in the VAT coefficient for fodder destined for livestock production from 13% to 6%.
  5. A tax reduction of 50% in capital concentration as of October 1, 2021.
  6. An extension on the suspension of payment for cable TV taxes until June 2022.
  7. An extension of the subsidy program for vacant positions in culture until December 2021.
  8. An extension of the SYN-ERGASIA program until the end of 2021.
  9. An extension of the subsidy program “Gefyra 1” for household loan installments for three months with a 40% coverage of loan installments.
  10. An extension of the program for 100,000 new employment positions by adding another 50,000 positions.
  11. An electrical power subsidy for the fourth trimester of 2021 (October to December) for the whole population for the first 300 Kwh at the amount of 30 €/Mwh, in order to compensate for almost the totality of the expected electricity increase.
  12. An increase of the heating subsidy of 17 million Euro. 

Όλες οι αλλαγές στη φορολογία από την 1η Οκτωβρίου


Του Προκόπη Χατζηνικολάου


Τουλάχιστον 12 ευνοϊκές ρυθμίσεις θα περιλαμβάνει το σχέδιο νόμου της κυβέρνησης που κατατίθεται στη Βουλή εντός της εβδομάδας. Όλα τα μέτρα έχουν άμεση ισχύ και συγκεκριμένα από την 1η Οκτωβρίου και οδηγούν στη μείωσης φορολογίας για νοικοκυριά και επιχειρήσεις.


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