Greece: Domestic Taxation
Generally speaking, Greece is not an attractive location for individuals or companies seeking to limit taxation; the mainstream corporate income tax rate used to be 35%, although it was reduced in stages to 32% in 2005, 29% in 2006 and 25% in 2007. The rate in 2010 is 24% and the government plans a further 4% cut over four years, to 20% in 2014. Doubts remain as to the achievability of this plan. There are however some particular features of the Greek tax system which are attractive for certain individuals or companies in certain situations.
A new, general-purpose development incentive law was promoted by the government in 2005 and was received very warmly by the business community. In the first ten months of its implementation (end of March 2005 till the end of January 2006) 1,234 applications were submitted accounting for EUR2.47bn.
The law offers a combination of incentives and corporate tax breaks and is aimed at sectors of the economy that are open to international competition, such as tourism, information technology, financial services, and quality agricultural exports.
The law was suspended as of 29/1/2010 and, following consultation, the Ministry plans to reform the Investment Law to make it a major driver of a new development model, focussing on green development.