Business tax and VAT in Greece

Companies pay 22% corporate tax on profits plus 5% on dividends; sole traders are taxed on the personal progressive scale (9–44%), with a reduced 4.5% on the first €10,000 of profit for the first three years if eligible. VAT is 24% standard (13% and 6% reduced), and there’s no minimum turnover before you must register — though small residents under €10,000 can opt for an exemption.

Corporate tax (companies — IKE, EPE, AE, partnerships)

a flat 22% on net profits, with no size graduation, plus 5% tax on dividends when profits are distributed.

Sole-trader / individual tax

taxed on the personal progressive scale (9% up to €10,000, rising to 44% above €60,000). A reduced 4.5% rate on profits under €10,000 applies for the first three years of a new business if eligible (half the normal first-band rate). A presumptive minimum income for the self-employed also applies — a floor based on the minimum wage and years of activity; confirm the current parameters with AADE.

VAT (ΦΠΑ)

Standard rate 24%.
Reduced 13% — food, accommodation, catering, passenger transport, some health items.
Super-reduced 6% — books, newspapers, theatre, electricity and gas.
Certain Aegean islands have reduced rates.

The registration threshold — an important clarification

there is no minimum turnover before you must register for VAT — any established business registers before operating. However, a resident under €10,000 annual turnover may opt for a small-business VAT exemption, then issue invoices without VAT. So “no threshold to register” and “a small-business exemption exists” are both true — they’re two different things.

Filing

VAT returns are electronic via TaxisNet — quarterly for most, monthly for some newer businesses — and myDATA increasingly pre-fills them. Non-EU businesses must appoint a fiscal representative (jointly liable); EU-established businesses can register directly.

Penalties to be aware of

failing to register for VAT can cost up to €2,500; late returns €100–€500; and myDATA non-compliance €250–€10,000 depending on size and duration.

Foreigner lens

the rates and thresholds are the same regardless of nationality; the extra step for non-EU businesses is the fiscal representative. All filing runs through TaxisNet.

How not to get cheated

two things people miss — (1) the 4.5% new-business rate and, where relevant, the small-business VAT exemption are genuine reliefs worth checking; (2) the presumptive minimum income means the tax office may assume a floor of profit even if you declare less, so plan for it. An accountant earns their fee here.

business legal forms · self-employed EFKA · myDATA · income-tax brackets

This is general information, not tax advice. Rates, thresholds and reliefs change — confirm with AADE (aade.gr) or an accountant. WTP Finance is informational only.

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