New tax landscape in January

New tax landscape in January

The implementation of a series of tax breaks and measures in 2022 is set to offer significant support to domestic consumption and the labor market from the very start of the new year.

The suspension of the solidarity levy, the continuation of reduced social security contribution rates, and the reduction of corporate tax rates and deposits will play a key role in forming the tax landscape of next year in favor of households and corporations. On the property tax front, the new official zone rates will come into force, raising various taxes and levies, while the new property tax will be reduced for most owners.

  • No solidarity levy will be payable by private sector workers and landlords for their 2022 incomes, nor the self-employed and farmers for their 2021 earnings. The measure also applies to earnings from corporate dividends.
  • January will see the application of the new “objective values” on properties, with hikes in 55% of the country’s zones that average at 19.5%.
  • By late February the new Single Property Tax (ENFIA) will have been unveiled, payable in 10-12 monthly tranches, starting from late March.
  • From 2022 up to 2025, 30% of taxpayers’ spending in specific professional sectors up to 5,000 euros per annum will be exempt from the taxable income. It concerns professions viewed as most prone to tax evasion.
  • A new tax lottery will be introduced from January, with awards reaching up to €50,000. Every Christmas there will be a grand draw, with a top prize of €100,000.
  • The reduced value-added tax rates on tourism packages, transport, coffee, non-alcoholic beverages and cinema tickets has been extended until June, along with VAT on services at gyms, swimming pools and dance schools.
  • A bill in early 2022 will offer thousands the opportunity to buy the state land they have illegally built on.
  • Corporate tax will be slashed from 24% to 22%, having dropped from 28% in 2019. Furthermore, companies that merge will enjoy a reduced tax rate of 15.5% for the next three years. The corporate income tax deposit will be cut from 100% to 80%.

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