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Greece is accelerating its journey towards economic modernization with a series of digital payment requirements, tax reforms, and investment incentives, as outlined by the Minister of National Economy and Finance, Kyriakos Pierrakakis, during his keynote speech at the “Greece 2025-2030” conference.
Digital Payment Mandates for Rent and Tax Deductions
From now on, rent payments—both residential and commercial—must be conducted through bank transfers to qualify for government housing subsidies and business expense deductions. For property owners, a 5% tax-deductible expense (such as renovation costs) will only be recognized if payments are made digitally. This move aims to enhance transparency and reduce cash-based transactions in the economy.
Fuel Industry Accountability to Combat Smuggling
A significant provision in the new Customs Code legislation imposes stringent penalties on fuel distribution companies for smuggling activities. Companies are now required to monitor their retail fuel stations actively, as smuggling is estimated to cost the government around €500 million annually. The ministry emphasizes a zero-tolerance approach to enforce compliance and protect state revenues.
Property Transfers Amid Corporate Debt
A new legislative adjustment allows company shareholders or managers holding up to 5% stakes to transfer real estate assets even if their company has outstanding public debts, provided that these debts have been arranged under a payment plan. Shareholders with larger stakes will benefit from more flexible procedures, with state safeguards in place, including potential reductions of required payment from 70% to 7% by pledging other assets as collateral. This reflects a broader effort to balance regulatory enforcement with business facilitation.
Incentives to Revive Idle Properties and Address Housing Shortages
To stimulate the real estate market, particularly unlocking closed or inactive properties, the government plans a comprehensive incentive package to be detailed by the Prime Minister during the Thessaloniki International Fair (TIF). The strategy includes the social contribution model and full registry of public property. Approximately 36,000 state-owned properties under the Hellenic Public Real Estate Company (ETAD), alongside bank and servicer-held assets, will be mobilized. Establishing a robust institutional framework to utilize inactive charitable foundations’ properties is also a priority.
Strategic Pillars to Attract Investment
Minister Pierrakakis outlined four core pillars vital for Greece’s investment climate enhancement:
- Removing Bureaucratic Barriers: Despite progress digitizing 2,000 public procedures, approximately 3,500 remain pending.
- Optimizing Public Asset Management: The Hellenic Corporation of Assets and Participations (HCAP) currently manages €12 billion in assets, with plans for proactive utilization.
- Sectoral Economic Development: Targeted growth plans for entire economic sectors based on strategic vision.
- Harmonizing EU Internal Market Regulations: Reducing intra-EU obstacles to facilitate cross-border business.
The conference, organized by Next is Now and Dome Consulting Firm, featured leaders discussing Greece’s future economic trajectory and was supported by the Real Group media group and relevant ministries.
