The economy is seen increasing modest steam one year from now as the recuperation reinforces. Household spending is seen getting footing in the midst of work showcase upgrades, while venture ought to stay solid gratitude to improving business certainty.
Risks lurk from expanded challenge to the essential the travel industry and a delicate Eurozone economy. FocusEconomics specialists see GDP extending 1.9% in 2020, which is unaltered from a month ago’s figure, and 1.9% again in 2021.
On the political front, the government kept on gaining ground on reforms, supporting another bundle on 25 October, planned for prodding speculation and improving the business atmosphere in the nation. The bundle incorporated some disagreeable estimates, for example, exclusions for organizations to quit aggregate compensation understandings and the redistributing of some taxpayer driven organizations, which started dissents in the nation.
Main sectors of industry
Traditionally, Greece’s economy has been founded on agriculture. The segment represents 3.5% of GDP and utilizes 11.9% of the work power. The principle crops are tobacco (third biggest European maker, 23rd around the world) and cotton. Greece additionally has a significant sheepherding industry and the angling business is all around created in the beach front locales.
Because of the nation’s expansion of the economy, business has supplanted agribusiness as the second wellspring of pay after administrations, representing 14.8% of GDP and utilizing 15.3% of the work power. Notwithstanding, its offer was higher (20%) before the financial emergency of 2007. Primary parts are gadgets, transport gear, apparel assembling and development. Greece has the biggest oceanic armada on the planet.
Th eservice sector represents 72.6% of GDP and utilizes 68.9% of the work power. The travel industry gives a fundamental wellspring of salary and all alone adds to 17.1% of GDP. The consistently expanding outsider populace presently makes up about 20% of the work power.
Taxes in Greece 2019
Value-added Tax (VAT) 24%
A reduced VAT rate of 13% applies to some foodstuffs; certain take away food; some cut flowers and plants for food production; some non-alcoholic beverages; water supplies; some pharmaceutical products; some medical equipment for disabled persons; some agricultural supplies; domestic care services and hotel accommodation.
A 6% rate applies to certain medicines and vaccines, books, newspapers, magazines and theatre tickets.
An inheritance tax of 1% to 10% is levied for close relatives and 0% to 40% for heirs on the tax value of real property. Real property tax is also levied depending on the characteristics of the property and the total objective value of all the taxpayer’s properties.
Company Tax 28%
Tax Rate For Foreign Companies
Resident companies pay tax on worldwide income, while non-resident companies only pay tax on Greece-sourced income.
Capital Gains Taxation
Capital gains are taxed as normal corporate income at the standard rate of 28%.
Investing in Greece
Reasons to invest:
- Greece enjoys a stable democratic system and strong ties to key economies in Europe.
- It’s free of religious or regional political or economic risks related to Turkey or any other Middle Eastern country. On top of that, it is fairly easy to invest in Greece with the Euro still being their currency.
- Highly educated and trained workforce
- Tax Reduction is Aimed to Reach as High as 50% in Two Years
- EU Bail-Out Program is Completed
- Annual Property Taxes are Reduced
- Newly Elected Government of Greece Eliminates VAT on Real Estate Investment