Understanding the Greek Tax System: A Complete Guide for 2025

How Greek Income Tax Works

Greece operates a progressive income tax system, meaning higher earners pay a larger percentage of their income. For 2025, the tax brackets remain unchanged from recent years, with rates starting at 9% for the first €10,000 and climbing to 44% for income exceeding €40,000.

EFKA Social Security Contributions

Before you even see income tax, EFKA (the unified social security fund) takes 13.87% of your gross salary. This covers your pension, healthcare, and unemployment insurance. Your employer contributes an additional 22.29% on top of your salary, making the total social security burden nearly 36% of payroll.

The 14-Salary System Explained

Greek employees traditionally receive 14 monthly payments: 12 regular salaries plus two bonus payments. The Easter bonus (half a month's salary) arrives in April, while the Christmas bonus (full month) comes in December. A vacation bonus (half month) is paid in the summer. Many employers now spread these across 12 months for easier budgeting, but the annual total remains the same.

Tax Credits That Reduce Your Bill

Greece offers a tax reduction of up to €777 annually for single taxpayers earning under €12,000. This credit phases out gradually as income increases. Additionally, taxpayers can claim deductions for medical expenses, charitable donations, and energy-efficient home improvements. The key is keeping receipts and documenting everything through the TAXISnet system.

Filing Your Tax Return

Tax returns in Greece are filed electronically through TAXISnet, typically between March and June. Most employees have taxes automatically withheld by their employer, but filing is still mandatory. Self-employed individuals and freelancers face quarterly advance tax payments. Consider consulting a certified accountant (logistis) for complex situations—their fees often pay for themselves in tax savings.