Starting November 1, Greece will make tips up to 300 euros per month tax-free for catering and personal care workers, with any amount above this threshold subject to tax. Tips paid electronically will be automatically reported by employers as additional income, exempt from insurance contributions, and taxed if they exceed the monthly limit.
Further clarifications on tip taxation in Greece
Public
Greece
Author: Tara Nedeljković
Category:
Fiscal subject related
Views:
2940
Content accuracy validation date:
06.11.2024
Content accuracy validation time:
07:59h
Recent clarifications on tip taxation in Greece have been published, detailing significant changes.
The expected effect starting from November 1st: Starting November 1st, the Ministry of National Economy and Finance announced that tips up to 300 euros per month will be tax-free for workers in catering and personal care services. However, those that exceed 300 euros a month will start to be taxed. Additionally, tips will be exempt from insurance contributions, regardless of the amount.
What is the way the tip will be declared by the employer, i.e., trader? Employers must record tips paid through electronic transactions (e.g., via EFT-POS) as additional remuneration and attribute them to employees. Tips paid via POS are automatically declared by the employer and included in the employee's total earnings, requiring no further action from the employee. Any tip amount exceeding 300 euros per month is taxable, similar to salary, with the employer ensuring the necessary taxes are withheld.
Handling cases that could occur, such as if an employee receives a tip of 200 euros one month and 350 euros the next: If an employee receives 200 euros as a tip in one month, it will not be taxed. However, if they receive 350 euros the next month, they will be taxed on the 50 euros exceeding the 300-euro threshold. The extra amount above 300 euros will be taxed along with the rest of the employee's taxable income, as tips are subject to the same income tax rates.
Other news from Greece
Greece Steps Up Market Inspections to lessen Tax Evasion
Greece
Author: Tara Nedeljković
Greece is ramping up market inspections to curb VAT evasion, combining on-site checks with electronic cross-checks focused on mandatory connectivity between EFT-POS, IRIS, cash registers, and the myDATA system. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
Greek AADE intensifies 2026 controls with more focus on retail transactions.
Greece
Author: Tara Nedeljković
Greece’s AADE will intensify tax controls in 2026 by shifting from random inspections to data-driven risk analysis, with a strong focus on retail transactions and sectors prone to cash-based tax evasion. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
How Are Electronic Payments Changing the Greek Payment Landscape?
Greece
Author: Tara Nedeljković
Greece is rapidly shifting from a cash-heavy economy to widespread electronic payments, driven by government measures, new legal requirements, and the linking of payment terminals to tax authorities, with studies by the Foundation for Economic and Industrial Research (IOBE) showing strong growth in card usage and significant VAT gains. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
Greece is Introducing Partial Targeted VAT Reform
Greece
Author: Tara Nedeljković
Greece’s Law 5246/2025 introduces a targeted VAT reform focused on supporting low-population island regions, extending real estate VAT suspension rules, and removing certain levies. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
Greece: Mandatory IRIS Instant Payments from December: All Businesses including B2C to Accept IRIS
Greece
Author: Tara Nedeljković
From December 1st, all B2C transactions must accept IRIS payments, with regulatory groundwork being finalized by the AADE. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
Greek Authorities Announced One-Month Extension for Mandatory IRIS Payment Implementation
Greece
Author: Tara Nedeljković
Greece's government extended the IRIS payment system deadline to December 1, 2025, allowing businesses more time to prepare. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
Businesses in Greece Will Be Required to Declare Vending Machines in the New Greek AADE Register
Greece
Author: Tara Nedeljković
The Greek Independent Authority for Public Revenue (AADE) has established the Register of Vending Machines, set to launch on November 14, 2025, requiring all operators to declare their machines for monitoring and tax compliance. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login