Employer Tax Contributions

Tax Type	Rate	Base
Social Security	22.29%	Employee's gross salary (up to €7,373.53 monthly)
Income Tax Withholding	9%-44%	Employee's gross income (progressive rates)
Unemployment Insurance	1.2%	Employee's wages

Filing & Compliance

• Employers must register employees with EFKA on the first day of employment.
• Submit the Analytical Periodic Declaration (APD) and pay social security contributions by the last working day of the month following the payroll period.
• Withheld income tax must be reported and paid to the tax authority monthly, due by the last working day of the second month following the payroll run.

In Greece, employee tax deductions encompass income tax, social security contributions, and other levies, impacting net income. Understanding these deductions is crucial for both employers and employees.

Income Tax

• Tax Rates: Income tax rates are progressive, ranging from 9% to 44%. The top rate applies to annual income exceeding €40,000.
• Tax Allowances: A personal allowance of €777 is available for employees earning less than €12,000, decreasing progressively for higher incomes. Additional allowances exist for dependent children.
• Tax Residency: Tax residents are taxed on worldwide income, while non-residents are taxed only on Greek-sourced income. Residency is determined by physical presence (over 183 days in a 12-month period) or center of vital interests. New tax residents meeting specific criteria may qualify for a special regime, taxing only 50% of Greek-sourced income for up to seven years.
• Tax Filing: The tax year is the calendar year. Tax returns are due by July 15th of the following year, with potential discounts for early filing and full payment by July 31st (4% discount for filing between March 15th and April 30th, 3% for filing between May 1st and June 15th, and 2% for filing between June 16th and July 15th). Taxes are payable in eight equal monthly installments, starting at the end of July.

Social Security Contributions

• Employee Contributions: Employees contribute a percentage of their salary towards social security, covering areas such as healthcare, pensions, and unemployment. The total contribution is 13.87% as of January 1, 2025. The employer portion is 22.29% plus a fixed annual fee of €20 per employee, also as of January 1st, 2025.
• Deductibility: Social security contributions are deductible from taxable income.

Other Deductions and Taxes

• Special Solidarity Contribution: Income exceeding €12,000 annually was subject to a special solidarity contribution, although it has been temporarily suspended for certain years.
• Business Levy (Abolished): The business levy, applicable to freelancers and self-employed individuals, was abolished in 2025 for natural persons.
• Imputed Income (Freelancers): Freelancers taxed based on imputed income will see adjustments to minimum taxable income, calculation methods, and turnover thresholds.

General Information

• Tax Incentives: Various tax incentives exist, such as deductions for donations, specific expenses related to medical expenses, children, and a tax reduction for expenses paid electronically. New incentives are available for angel investors in start-ups.
• Tax Year and Filing: The tax year aligns with the calendar year. Several changes to the tax filing procedures have been implemented in 2025, aiming to streamline processes and improve compliance.
• Employer Reporting: Employers must withhold taxes and social security from employee salaries and remit them to the relevant authorities. Various reporting requirements exist, such as providing annual income certificates to employees by the end of February and submitting payroll reports by the last working day of the second month following the payroll period.

It is important to note that this information is current as of February 5, 2025, and may be subject to change. Consulting with a tax advisor is recommended for personalized guidance.