Professional fee on last legs

The government is making moves leading to the gradual abolition of another relic of the bailout period, that being the fee for practicing a profession (“telos epitidevmatos”), enabling 900,000 businesses and professionals to save up to 1,000 euros a year if they increase the number of their full-time employees.

However, year after year, the fee is coming closer to its demise, either through permanent exceptions or with the fulfillment of specific conditions.

The exemption from the business tax applies from September 1 and is granted to professionals and small businesses, with a gross revenue of up to €2 million per year, which increase their average annual number of full-time employees for at least three months per year. 

The exemption from the fee concerns the year during which the increase in employment takes place.

In the event that a professional without an employee from October 1 hires an employee with full-time status for at least one quarter, namely until December 31, they will be exempted from having to pay the €650 business fee for 2023.

The measure will also apply in the following years to professionals or small businesses that increase their average annual number of full-time employees for at least one quarter each year. 

For example, if a company increases the number of full-time employees on January 1, 2023 and maintains it until at least the end of March, it will automatically be exempt from the business tax it will have to pay in 2024.

Today, the annual fees for practicing a profession range from €400 to €1,000, depending on a number of factors, such as the location of an enterprise, the type of business and the number of employees. 

Nevertheless there is a number of exceptions, such as those located in small settlements and ownership by a disabled person.

In case of interruption of business activity within a financial year, the fee is reduced in accordance with the months of operation. A period of time longer than 15 days counts as one month.