Tax Updates: April 25th 2025

The recently published Law 5193/2025 introduced various provisions, both regulatory and tax-related, which are intended to operate as incentives for the strengthening of the capital market. Below, we highlight the most important tax provisions of the new law.

• The tax rate applicable for interest income earned as of 11 April 2025 by Greek tax resident individuals from listed corporate bonds is reduced to 5% (instead of 15%, which was the previously applicable tax rate). We note that interest from listed corporate bonds is tax exempt when earned by foreign individuals and foreign legal entities.
• Costs incurred for the listing of very small, small and medium-sized enterprises on the stock exchange shall be deductible for tax purposes at the time of their realization increased by 100%, whereas the maximum amount of tax benefit shall not exceed EUR 200 000. By providing this incentive, it is intended to increase the accessibility of small and medium-sized enterprises to the stock exchange and strengthen the capital market in general.
• The already existing incentive for angel investors (individuals) to deduct from their taxable income up to fifty percent (50%) of the amount they contribute to startups or to close ended mutual funds investing in startups is now also extended to apply in the case of angel investors (individuals) who invest in companies listed on a multilateral trading facility operating in Greece. The ultimate purpose of this incentive is to encourage the creation of investment schemes based wholly in Greece.
• The possibility of transferring tax losses to the recipient company/absorbing company in the case of corporate transformations, which is granted under the beneficial provisions of the recent Law 5162/2024 on tax incentives for corporate transformations, shall also apply to transformations of credit institutions that are carried out as of 11 April 2025 (we note that transformations of credit institutions are carried out according to the provisions of Law 2515/1997).