Greek tax reform: zero VAT on new buildings, ENFIA exemptions announced

The tax reform legislation submitted November 25 in the Greek Parliament introduces measures aimed at enhancing citizens’ economic well-being and modernizing regulatory frameworks, with main points including the extension of the VAT suspension until the end of 2025 for all new constructions that was already in effect, a permanent ENFIA tax exemption for historic buildings valued at €400,000 or less, tax relief for individuals and businesses with partially or fully written-off debts via out-of-courts settlements, debt repayment restructuring and more tax reduction initiatives, in order to cultivate a more progressive and equitable taxation framework.

Minister of National Economy and Finance, Kostis Hatzidakis, commented that the new tax reform delivers on the government’s commitment to redirect tax evasion revenues toward citizen benefits through targeted tax reductions and enhanced social programs. He added that such an approach strengthens incomes, supports vulnerable populations, and promotes innovation while maintaining fiscal stability. Deputy Minister Christos Dimas opined that Robust economic growth enables continued tax reductions while implementing reforms to position Greece as an attractive, innovative, and resilient investment destination.

Further initiatives involve:

1% reduction in social insurance contribution rates.
Elimination of professional taxes for independent contractors and freelancers.
Income tax exemptions for properties under new extended lease agreements.
Enhanced ENFIA discounts (20%) for insured property owners.
Removal of 15% insurance tax on private health insurance contracts for dependents.
Reduced telecommunication taxation for high-speed fiber internet services (≥100 Mbps).
Merger and acquisition incentives, particularly targeting small and medium enterprises.
Real estate VAT suspension extended until December 31, 2026.
Reduced income threshold requirements for small businesses in communities under 1,500 residents.
Gradual pension solidarity contribution adjustments tied to annual pension increments.An additional €400 million budget is designated for:
Public investment expansion (+€100 million) through the National Development Program.
Repayment of co-financed projects from the 2014–2020 European Union programming period (+€300 million).