On 26 May 2022, the Greek Official Gazette published Law No. 4935/2022 which introduced a 30% income tax exemption for certain new business reorganizations. The tax exemption applies provided that the following cumulative conditions are met:
- The average turnover in the last three years of all companies or sole proprietorships involved in the reorganization is at least 150% of the average turnover of the company or sole proprietorship with the highest average turnover in the last three years;
- The companies or sole proprietorships involved in the reorganization are micro, small, or medium-sized enterprises (SMEs), as defined under article 2 of Annex I to Commission Regulation No 651/2014;
- The turnover of the new company resulting from the reorganization is at least 375,000 euros, determined on the basis of the total turnover of the companies or sole proprietorships involved in the reorganization, according to the last approved and published annual accounts or income tax returns, excluding transactions between them; and
- The new company employs more than 9 full-time employees.
Subject to certain other conditions, a 30% tax exemption is also provided for the cooperation of persons created under a contract or agreement between unrelated persons and for the contribution of a sole proprietorship to any form of company.
