Law 5222/2025 introduces changes to VAT, income tax, customs and real estate rules, following public consultation and EU alignment efforts.
Greece enacted Law 5222/2025 on 28 July 2025, introducing changes to corporate income tax, VAT, income tax, customs and real estate rules.
These changes aim to align national rules with EU directives.
Income taxation
The employer’s provision to cover medical expenses for an employee or their relative is now excluded from income calculations related to wages and pensions (Article 207).
The income tax rules applied to seafarers on commercial ships also extend to those working on private recreational vessels (Article 208).
A specific taxation framework is set for itinerant lottery ticket sellers, including a fixed tax rate on their commission and exclusion of this income from certain tax calculations (Article 209).
For leases or subleases of real estate to individuals or legal entities, rent payments must be made to the lessor’s bank account. Failure to comply results in disallowing tax deductions for repair, maintenance, renovation, or other operating expenses related to the property, and excludes the tenant from benefits or subsidies linked to leases (Article 210).
The rules for special purpose companies that manage family wealth have been revised. The annual operating expense limit has been lowered from EUR 1 million to EUR 500,000 (Article 211).
Changes to VAT Law aligning with EU Directives
An amendment to the VAT Code incorporates parts of EU Directive 2022/542. It clarifies the VAT rates applied to sales of artistic, collectible, and archaeological items, as well as imported goods. It also sets out exemptions for small businesses when selling goods to other EU countries, following Directive 2020/285.
Special tax exemptions related to fuel, lubricants, provisions, and other supplies for certain types of ships are confirmed to apply to these vessels.
The rules for small businesses exempt from VAT payment are updated to align with EU law. This includes conditions for qualifying for the exemption, oversight responsibilities of the tax authority, and limits on annual turnover that affect eligibility.
Updates are made to special VAT regimes covering dealers of used goods and artworks, and to distance sales of goods imported from outside the EU.
Additionally, the VAT rate on imports and sales of artworks and antiquities is lowered from 13% to 6%.
Property Tax Code Updates:
The required period for a deceased person to have lived abroad, in order for their foreign movable assets to be exempt from inheritance tax, is shortened from ten years to five years. Also, employer payments covering medical costs for employees or their relatives are now excluded from gift tax.
Before the law was enacted, the Greek Ministry of Finance held a public consultation starting 24 June 2025 to discuss the draft law, including the EU small business VAT scheme, inheritance and gift tax laws, and the special real estate tax regime.
