Greece Overhauls 2025 Tax Returns: Key Changes to E1 Form and Income Rules

09:18 28/2/2025 - Πηγή: Dikaiologitika

Greece has introduced changes to its 2025 income tax return system, particularly in the E1 form, which taxpayers must submit this year.

The updates include the removal of the business tax levy, a tax exemption for gratuities up to €300 per month, the introduction of a digital transaction fee, and new rules

on minimum imputed income for small business owners in rural areas.

One of the most notable changes is the abolition of the business tax levy for all self-employed individuals and freelancers who operate under a service invoice system, commonly known in Greece as "blokaki." This means that these professionals will no longer have to pay a fixed business levy simply for carrying out their work. As a result, the corresponding sections in the tax return form have been eliminated.

A new digital transaction fee has also been introduced and will now be recorded separately on tax returns to ensure accurate reporting. This fee applies to certain types of transactions, reflecting Greece’s broader effort to modernize its tax system.

The government has also introduced a tax exemption for rental income under specific conditions. Landlords who lease residential properties up to 120 square meters can benefit from this exemption if the lease agreement lasts at least three years and is signed between September 8, 2024, and December 31, 2025. Additionally, the property must have either been previously declared vacant in past tax years or have been used exclusively for short-term rentals in 2023.

There are also changes to the taxation of gratuities received by employees. Starting in 2024, voluntary tips of up to €300 per month, given by customers, will be exempt from income tax. However, if gratuities exceed this amount, the excess will be taxed as additional income. This exemption does not apply if tips are contractually defined or calculated as a fixed percentage of wages.

For sole proprietors, the government has adjusted the way minimum net income is determined. A significant new provision allows a 50% reduction in the minimum imputed income for business owners who both live and operate their businesses in small settlements with fewer than 500 residents or in municipal communities with a population of up to 1,500. However, this benefit does not apply to areas within the Attica region, except for islands in the Regional Unit of Islands.

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