The hard times will begin in earnest in the autumn for the Finance Ministry, which will have to solve complex equations determining the amount of interventions that can be made without disrupting budget objectives.
Households have this year covered their tax and social security obligations through their work by July 1, which is their Tax Freedom Day for 2022, according to the annual survey by the Center for Liberal Studies (KEFiM).
Greece ranks 13th among the 38 countries in the Organization for Economic Cooperation and Development (OECD) in terms of housing taxation, as 7% of tax revenues come from property, 2020 data has shown.
Tax payments in a lump sum by taxpayers and increased value-added tax revenues are filling state coffers, creating the necessary fiscal space to support households against the impact of the energy crisis.
A list of 70,000 state-owned land parcels and properties that are occupied by trespassers has been circulated to Greece’s ministries to identify assets that cannot be included in a scheme to sell them to the encroachers because they are intended for public interest.
More than a thousand property owners in Greece are about to take recourse to the courts against their Single Property Tax (ENFIA) bill, as the government has already conceded that there have been some errors in their calculation.
Pension hikes from January 2023, a gradual return of retroactive payments to pensioners amounting to 2.6 billion euros, a new increase in the minimum salary and tax breaks are among the measures Prime Minister Kyriakos Mitsotakis is expected to outline in his keynote speech at the Thessaloniki International Fair (TIF) in September.
The Finance Ministry is planning to offer additional incentives to consistent taxpayers, even to those who have settled overdue debts and pay installments to the tax office on time, the financial staff plans.
The particularly favorable tax regime that was introduced in 2019 has attracted a significant number of foreign investors who have become tax residents of Greece, as well as foreign retirees and employees.