Calculate the advance income tax payment (prokatavoli forou) for Greek self-employed and companies. Based on prior year tax at 100% or 80% for companies.
Enter your prior year income tax and entity type to calculate the advance tax prepayment amount and the two instalment payments due in Greece.
Total Advance Tax
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First instalment
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Second instalment
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Advance rate applied
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Prior year tax
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Your breakdown
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Amount
How advance tax works in Greece
The advance tax (prokatavoli forou) is Greece's mechanism for collecting income and corporate tax throughout the year rather than entirely in arrears. When you file your annual return, you simultaneously pay the final balance of the year just ended and an advance toward the following year. The advance is credited against next year's final liability.
Example calculation
A freelance engineer paid 6,000 EUR income tax for 2024. When filing the 2024 return in June 2025, the advance due is 6,000 x 100% = 6,000 EUR, paid in two instalments of 3,000 EUR each. If the 2025 actual tax comes to 7,000 EUR, only 1,000 EUR remains due at the 2025 filing. If 2025 tax is only 5,000 EUR, there is a 1,000 EUR credit or refund.
Tips and considerations
Always reserve the advance amount from current earnings. Set aside the advance rate percentage of each payment received during the year. If income is declining, apply early to AADE for a reduction to avoid tying up capital unnecessarily.
Frequently asked questions
What is the advance tax payment system in Greece?
The Greek income tax system requires taxpayers to prepay a portion of the following year's tax when filing the current year's return. For self-employed individuals and sole traders, the advance equals 100% of the current year's income tax. For legal entities (companies), the advance equals 80% of the current year's corporate tax. This advance is split into two equal instalments. In practice, this means that when a profitable professional or company files its tax return, it pays both the final balance of the current year and half of the next year's estimated tax simultaneously, creating a significant cash requirement at filing time.
When are the advance tax instalments due in Greece?
The advance tax instalments are tied to the annual tax return filing deadline. For individuals, the tax return is typically due by June 30, and the two advance instalments are due on the same date and three months later (around September 30). For legal entities with calendar-year accounting, the corporate tax return is due by June 30, and the company pays 80% of the current year's corporate tax as an advance simultaneously, in two equal instalments in June and September. These deadlines can shift based on AADE announcements and extension orders, so it is important to check the current year's schedule on the AADE website.
Can the advance tax be reduced if income falls significantly?
Yes. A taxpayer can apply to reduce the advance tax percentage if they have a well-founded expectation that their income in the following year will be significantly lower than the current year. The application must be submitted to AADE before the advance payment deadline, with supporting documentation such as a business plan, preliminary accounts, or evidence of a major client loss. AADE reviews such requests case by case. Failure to pay the full advance without a reduction application results in late-payment surcharges at the standard rate. Self-employed individuals in their first year of operation pay a reduced advance of 55% rather than 100%.
Is the advance tax refunded if actual tax ends up lower?
Yes. The advance tax paid in year N is credited against the final tax liability computed when the year-N+1 tax return is filed. If the advance exceeds the actual tax (because income fell), the excess is either offset against VAT or other tax debts, or refunded directly to the taxpayer's bank account. Refunds from AADE typically take 2 to 6 months after the return is filed and verified. There is no penalty for overpaying an advance, but the funds are effectively interest-free loans to the state until refunded. Tax advisers often recommend estimating income proactively to avoid excessive overpayment.