Business Taxation
Business Levy for Companies: Who Pays It, How Much and What Changes from 2027
Published · 8 min read · NS Accounting & Tax Office
Written by the NSTAX team of accountants and tax advisers
Many entrepreneurs believe that the business levy has now been abolished. This is true only for individuals: companies continue to pay it every year, regardless of whether they make a profit. At TIF 2026, its gradual abolition for legal persons was announced, with initial implementation in 2027 and complete abolition in 2029. In this article, NSTAX explains who pays today, how much, and what the timetable means for businesses in Athens and elsewhere in Greece.
Who Pays the Business Levy Today
Under Law 5162/2024, the business levy was abolished for individuals from tax year 2024, including self-employed professionals and contractors issuing service invoices. Legal persons and legal entities, namely companies of every form (AE, EPE, IKE, OE, EE), still owe it. Even a single-member IKE, which seemingly operates like a sole proprietorship, pays the business levy as a legal person. According to reports, the levy is currently assessed on approximately 245,000 legal persons, around half of which (121,922) have their registered office outside Attica.
How Much Is the Business Levy
The annual levy for companies depends on the location of their registered office and the number of branches:
- For-profit legal persons with a registered office in tourist destinations or towns and villages with a population of up to 200,000: €800 annually
- For-profit legal persons with a registered office in cities with a population above 200,000, such as Athens and Thessaloniki: €1,000 annually
- Each branch of a for-profit legal person: €600
- Civil non-profit companies: €400 or €500 depending on the population of the registered office’s area, and €300 per branch
Three Current Calculation Examples
- IKE with a registered office in Larissa and no branch: €800
- IKE with a registered office in Athens and one branch in Thessaloniki: €1,000 + €600 = €1,600
- IKE with a registered office in Athens and two branches, one in Thessaloniki and one in Patras: €1,000 + €600 + €600 = €2,200
What Was Announced at TIF 2026
The gradual abolition of the business levy for legal persons follows this timetable:
- 2027 (tax year 2026): abolition of the levy for registered offices and branches of legal persons located outside the Region of Attica, including Thessaloniki, as well as in the Islands Regional Unit
- 2028 (tax year 2027): 50% reduction in the levy for businesses in the rest of Attica
- 2029 (tax year 2028): complete abolition of the levy nationwide
The fiscal cost of the measure for 2027 is estimated at approximately €82 million. The measures are in the process of being legislated, so the final terms and timetables may change.
What It Means for Businesses in Attica and Athens
For businesses with a registered office in Attica, such as many Athens businesses, relief arrives later, but the result is worth calculating. The published examples are:
- IKE with a registered office in Larissa and no branch: €800 in 2026, abolished from 2027
- IKE with a registered office in Athens and two branches outside Attica (Thessaloniki and Patras): €2,200 in 2026, €1,000 in 2027 (registered office only), €500 in 2028 and €0 in 2029
- IKE with a registered office in Thessaloniki and one branch in Athens: €1,600 in 2026, €600 in 2027 (Athens branch only), €300 in 2028 and €0 in 2029
The order in which the levy is abolished therefore depends on the location of each company unit, not just the registered office.
The Second Measure: Reduction in Advance Tax
The same package also announced a reduction in advance income tax. For legal persons, the 80% rate is expected to decrease by 5 percentage points each year, starting from tax year 2028 (2029 returns), until it reaches 50%. For sole proprietorships, the 55% rate falls to 50% from tax year 2027. These measures are also in the process of being legislated.
The Most Common Mistakes
- Assuming that the business levy has also been abolished for companies
- Calculating the levy incorrectly by failing to account for branches (€600 per branch)
- Confusing the payment year with the tax year in the abolition timetables
- Assuming that TIF announcements already apply while they are still being legislated
- Deciding to change the registered office or branches solely to save the levy, even though it is being gradually abolished
- Failing to budget the levy as part of the company’s costs for the year
5 Practical Tips
- Calculate your company’s levy based on its registered office and branches, and include it in the budget.
- If your business has branches outside Attica, note that these are the first to be exempted from 2027.
- Do not decide on the company’s structure (registered office, branches) based solely on the levy, because it is being abolished and the cost of changing the structure may exceed the benefit.
- Monitor the legislative process after TIF 2026 for the final form of the measures.
- Ask your accountant to check that the levy is assessed correctly for your company and each of its branches.
Frequently Asked Questions
Do self-employed professionals pay the business levy?
How much is the business levy for an IKE in Athens?
Does the business levy also apply to OE and EE partnerships?
When is the business levy abolished for companies?
What will a company with a registered office in Athens and two branches outside Attica pay?
Would You Like Us to Check Your Company’s Business Levy?
NSTAX, an accounting and tax advisory firm in Athens, checks the business levy assessment for your company and each of its branches, and explains what changes under the new measures. Contact us for a brief review.
See also year-end tax planning 2026, the tax and accounting obligations calendar and NSTAX business services.
The business levy amounts are based on the current framework, while the abolition measures and reduction in advance tax announced at TIF 2026 are in the process of being legislated and the final terms may change. The examples are based on published calculations. For an accurate picture of your own company, contact us.