These interventions together with another one, which provides for a reduction in insurance contributions for salaried workers in the public and private sector, will be included in a new tax bill that will be submitted to the Parliament and will be voted on within the next few weeks.
The measures
In detail, the 9+1 measures to reduce tax and other burdens that will be included in the government’s next pending tax bill provide for the following:
1 Abolition of the pretension fee of 325 euros for tradesmen, artisans and freelancers with sole proprietorships subject to the taxation provisions of Law 5073/2023.
2 Improvement changes in the provisions of Law 5073/2023 that provide for the determination of the taxable income of individual businesses based on presumptions. The changes decided on provide that:
* The 50% reduction in the minimum amount of net income that currently applies to settlements with a population of up to 500 inhabitants and currently occupies 11.4% of the population will also apply to settlements belonging to municipal communities with a population of up to 1,500 inhabitants. Thus the reduction will occupy 18% of the population.
* In the event that in a company the maximum annual salary paid is higher than the annual minimum wage of the private sector, the addition of the criteria of payroll costs and turnover will not be made on the maximum salary, but on the minimum, with whatever increments due to three years. Then the amount resulting from this addition will be compared to the amount of the maximum annual salary paid and whichever of the two is the largest will be taken into account as the minimum net presumptive income.
3 Tax exemption for vacant or short-term rental properties to be made available for long-term leases. Any owner who makes available, for a long-term lease of at least three years, a residence that he owns and which has been vacant for at least 3 years (as shown by the E2 form) or has been on a short-term lease for at least 3 years, will be exempt from income tax on rents which will be collected in the next three years. The exemption concerns residences up to 120 sq.m. belonging to natural persons. The time period during which owners are given the opportunity to take advantage of this provision started as early as September 8, 2024 and will end on December 31, 2025.
4 Extension, until the end of 2025, of the VAT exemption applicable to newly built buildings. The VAT suspension applies to sales of new buildings that are not intended for first residence. These transactions will still incur a transfer tax of 3% on the taxable value of each property.
5 Abolition of the 5% landline fee for optical fiber connections with a speed equal to or greater than 100 mbps.
6 Exemption from the 15% premium tax on health contracts for children up to 18 years of age. In the case of a family or group contract, the tax is reduced in proportion to the number of minor members it covers.
7 Tax exemption for voluntary business benefits for employees who are new parents. Voluntary financial benefits of the employer, which are provided to a new parent for a period of up to twelve months from the acquisition of a child, up to the amount of 5,000 euros per year, increased by an additional 5,000 for each dependent child, will not be subject to personal income tax.
8 Reduction of ENFIA by 20% for houses insured for damages from natural disasters. The maximum rate of reduction of the ENFIA for houses insured against the risks of flood, fire and earthquake is doubled – from 10% to 20%. The measure will apply to homes with a taxable value of up to 500,000 euros. Homes with a taxable value of more than 500,000 euros that are insured against the risks of flood, fire and earthquake will continue to have a 10% discount in ENFIA in the following years.
9 Independent taxation of NHS doctors on call with a rate of 22%.
- 1% reduction in insurance contributions from 1/1/2025, of which 0.5% from employee contributions and 0.5% from employer contributions. For public sector employees, the reduction will concern the monthly withholding of the health sector contribution, the percentage of which will drop from 2.55% of gross earnings to 2.05%.
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