Invest in Greece: Tax Rates Will be Cut with the New Tax Bill
It was not so long ago that the Greeks voted for their new government and it seems like the new government is doing a fine work of trying to attract investors to the country. Politicians in Athens are now trying to pass a bill which will reduce the tax rates for both individuals and firms that are interested in investing in Greek economy.
New Government, New Bill
This new tax legislation will be in effect as early as January 2020 if the new government succeeds in getting the support of the parliament. Some parts of the bill will be effective even before that and will affect debtors more than anyone else. The newly elected president of Greece, Kyriakos Mitsotakis said that the new bill is designed to bolster the ranks of the middle class and it will decrease the tax burden of the companies to hopefully increase investments. The finance minister to be announced soon will make sure to have a series of contacts with the country’s greatest creditors and many other European institution to tweak the bill as best as possible.
Some Serious Tax Cuts are on the Way
New Greek government’s tax cuts are quite significant to say the least. Individual taxpayer’s original 22% lowest tax rate will be reduced to a more manageable 9%. That is already a huge step on the right direction to help out the struggling middle class of Greece. For the richer citizens the government wishes to drop the maximum tax rate of 45% to a 40%. This may not seem like as big of a change as the one for the minimum rate but given the actual number of Euros the richer Greeks pay it will certainly make a difference for them. The ceiling for tax-exemption will remain the same after the bill, at 8636 Euros per year.
There are Plans to Reduce Taxes of Many Types in the Upcoming Years
The new Greek government seems to have waged war against many taxes that have been burdensome to Greeks for quite some time now. Among their plans is to remove the annual tax that is paid to practice a profession. Likewise, a solidarity levy which should have been ended in 2014 will be ended in the upcoming years. Greece has definitely seen better days, but it is going out of its crisis as well thus such extreme taxes are doing more harm to the country than any good.