The State Budget Law for 2025 introduces a series of fiscal and tax changes aimed at boosting the economy and supporting various segments of the population. The key updates include:
- Changes in IRS: The IRS undergoes several changes, such as a 4.6% increase in tax brackets, with the maximum rate of 48% for income exceeding €83,696. The withholding tax rate for self-employed workers was reduced from 25% to 23%, and advance payments for Category B income were adjusted to 65% of the calculated amount. Meal allowances in vouchers are now exempt up to €10.20. The deduction for dependent work income was adjusted to €4,462.15, and the minimum income threshold was updated. The taxation of overtime was modified, with withholding tax exemption for non-residents up to 100 hours annually. The IRS Young Workers scheme was extended up to 35 years of age, with a progressive exemption up to €28,737.50.
- Reduction in IRC Rate: The standard IRC rate was reduced to 20%, while Small and Medium Enterprises (SMEs) and Small Mid Caps can benefit from a reduced rate of 16% on the first €50,000 of taxable income.
- Tax Incentives and Benefits: Tax exemptions for strategic areas such as research, agricultural production activities, and housing loans were extended. Additionally, there was an increase in the incentive for salary growth, with a 200% increase in costs related to wage raises.
- Changes in VAT: The law also introduces new exemptions, including for fertilizers, pet food in shelters, and reduced rates for infant food and bullfighting events.
- Other Fiscal Measures: The update of IMT brackets and the introduction of specific measures for plug-in hybrid vehicles are also significant highlights of this version of the Budget.
These changes aim to stimulate the national economy and provide direct support to specific groups, such as young workers and small businesses.