The Greek Parliament recently voted in favor of the reduction of the tax rate on income arising from dividends. As a result, the rate has been amended to 10%, from the previously valid 15%. The new decreased tax rate (10%) shall apply on income from dividends gained from 1.1.2019 onwards and received by individuals, legal persons as well as legal entities.
This reduction of the tax on dividends, in combination with the recently adopted gradual reduction of the Corporate Income Tax (from 29% in 2018 to 25% in 2022, a decrease of one percentage point each year) undisputedly creates a new momentum. We expect to see, as a result of the above changes, the creation of a more competitive corporate tax environment for investors choosing to invest in Greece.
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