2021 Tax Outlook for Greek Startups
The Greek Tech Finance Network hosted on the 16th of December 2020, Labros Tsilivigos, founder of Up Accounting Services and experienced accountant with a long track record working with Greek startups, who gave us an overview of the tax outlook for 2021. We went through all the upcoming changes in the Greek tax regime and how these may affect startups.
In this presentation, you will find details on the below main themes for 2021:
A reduction in social contributions and a solidarity tax levy will be increasing the employee's salary while at the same time reducing the cost to the employer, effective immediately.
Beneficial tax breaks for persons (employees and freelancers) that were abroad for 7+ years and are moving their tax residence to Greece for a min of 2 years. Applications submitted to the local tax office of that person from Jan 2021. More details will be announced, but, most likely, tax will be withheld by employer/state and will be paid back at a later date.
myDATA platform (Digital Accounting and Tax Application) will be digitizing the accounting books with the ultimate goal of automating reporting to the authorities and connecting invoices across issuers and receivers. Deadlines further extended from January 2021, with the exact date yet to be announced.
R&D tax breaks - a measure that can be very beneficial to companies that invest heavily in R&D, such as startups - go up to 100% of R&D Expenses. Breaks come in the form of an equal reduction in taxation for profit-making companies or can be carried forward in the case of loss-making companies. Also, the procedure for approval of these breaks will be much faster with a 6-month window.
All in all, changes in the Greek tax environment in light of 2021 are expected to have a positive effect on Greek startups with tax breaks offered both on the company and the employee fronts. Have a look at the presentation slides and related video to learn more on each of the above topics!