The Countdown to Tax Season 2025: Deadlines, Discounts, and Key Changes

12:54 20/1/2025 - Πηγή: Dikaiologitika

Starting March 17, 2025, over eight million taxpayers, comprising both individuals and legal entities, will embark on the annual process of submitting their tax returns for income earned during the year 2024.

The 2025 tax season in Greece is set to begin, bringing with it significant changes that aim to reshape the fiscal landscape. This year,

taxpayers will navigate a system marked by new measures, enhanced incentives, and stricter controls, all designed to improve compliance and streamline the tax process. The Independent Authority for Public Revenue (AADE) has outlined clear deadlines and introduced initiatives that encourage timely submission and payment while providing financial relief to certain groups.

Starting March 17, 2025, over eight million taxpayers, comprising both individuals and legal entities, will embark on the annual process of submitting their tax returns for income earned during the year 2024. Meanwhile, public entities have already faced additional responsibilities, with a requirement to complete their registration in the Income Submission Registry by January 15, 2025, through the digital platform «myAADE». Failure to comply with this deadline has severe consequences, including the imposition of significant fines, emphasizing the critical need for adherence to these regulatory obligations.

The 2025 tax season operates on a structured timeline. Taxpayers must submit their returns by July 15 if they are individuals or legal entities with fiscal years ending December 31, 2024. Those paying their taxes in full by July 31 will benefit from a discount of up to 4%, with earlier submissions potentially qualifying for slightly lower discounts of 3% or 2%. For married couples wishing to file separate returns, the deadline to declare this choice is February 28, 2025. Once this date passes, the decision cannot be reversed, locking couples into their chosen filing method for the year.

Several changes in the tax framework aim to reduce financial burdens on specific groups, particularly professionals, freelancers, and property owners. Among the most notable is the complete abolition of the business tax surcharge, which had long been criticized for disproportionately affecting freelancers and small businesses. This change will significantly reduce tax liabilities, with professionals taxed under presumptive systems saving an average of €325. Freelancers earning through invoice books, known as «bloka», will see reductions of €400 to €500 in their tax obligations. These benefits extend to individuals working with up to three employers or those whose income is predominantly derived from a single employer.

Self-employed individuals and small business owners also stand to gain from amendments to presumptive income taxation. Changes to this system, combined with the removal of the surcharge, mitigate the impact of an increase in the minimum presumptive income, which rose to €11,620 in 2024 due to adjustments in the minimum wage. Additional benefits are targeted at professionals based in villages with fewer than 1,500 residents, those employing staff, and businesses with above-average turnover.

Property owners who undertook renovations in 2024 will benefit from significant tax deductions. Expenses related to energy efficiency upgrades, functional improvements, and aesthetic enhancements are eligible for deductions of up to €3,200 annually over five years, capped at €16,000. For example, a taxpayer who spent €16,000 on home improvements in 2024 will save €16,000 in taxes over five years, beginning with their 2025 tax return. These deductions are calculated to include both material costs and service expenses, with material costs capped at one-third of the total deduction.

Homeowners who reopened vacant properties after September 8, 2024, also enjoy substantial tax relief. Properties that were vacant for at least three years and subsequently rented out or shifted from short-term to long-term leases are exempt from rental income tax for three years. This measure aims to address housing shortages by encouraging the return of unused properties to the market while providing financial benefits to their owners.

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