The income professionals declared to the tax office in 2024 (for 2023) increased by 103.06% compared to the declarations of 2023, thanks to the change in the method of income taxation. Sources from the Ministry of National Economy and Finance report that this year the increase will be even greater, as electronic books and the increase in e-transactions significantly reduce the scope for tax evasion.
At the same time, large annual growth of 29.24% is recorded in the income declared in 2024 from dividends, a fact attributed to the low tax rate: Businesses began to pay higher dividends to shareholders and therefore show higher profits, since the government proceeded to reduce the rate to 5%.
As of January 2020, dividends are taxed at a rate of 5%, down from 10% until 2019 and 15% a year earlier, so dividends distributed in 2019 amounted to 2.6 billion euros, while they have now exceeded €8.7 billion. That is, an increase of 234.6% is recorded in 2024 compared to 2019. On dividends, Bulgaria, Romania, Slovenia and Greece have the same rate (5%), while many countries, such as France, Slovakia and Cyprus, do not impose such a tax at all. On the other hand, Spain, Luxembourg and Portugal tax dividends at a rate of 15%, while Austria, Germany, Belgium and Italy tax them at rates ranging between 25% and 30%.
Overall, the income declared in 2024 from all categories increased by 15.7% or €14.4 billion compared to 2023, while in the two-year period (2023-2024) declared incomes show an increase of €21.8 billion, with increasing trends. The incomes declared this year to the tax office are estimated to record a new large increase. This is due to the increase in the minimum wage, the reduction in unemployment, as well as the rise in private sector salaries. According to data the Independent Authority for Public Revenue published, in 2024 (incomes 2023) a total of €106 billion was declared compared to €91.6 billion in 2023 (incomes 2022). That is, the declared income of individuals increased by 15.7% between 2024 and 2023.
