Greece Reduces Bank Transaction Costs in 2025 Budget

Greece’s national budget for 2025 was approved by the country’s parliament on December 15, with 159 votes in favor.

The budget, focusing on economic growth and measures to reduce consumer costs, introduces a significant initiative to reduce bank transaction fees, benefiting consumers and the wider economy.

Key measures to reduce bank transaction costs

The Greek government’s proposed measures include:

– Free Transactions: All payment orders, including bill payments to government and utility companies, will be free of charge. This will lead to a revenue decrease of approximately 35 million euros for banks.

– Low-Cost Bank Transfers: Transfers of up to 5,000 euros between banks will incur a maximum fee of 0.50 euros, reducing bank revenues by an estimated 95 million euros annually.

– ATM Access: Cash withdrawals in municipal districts where there is only an ATM from one bank will now have zero fees. Similarly, zero fees will be applied for balance inquiries at any ATM from another bank across the country.

– Prepaid Cards: No fees will apply to prepaid cards for amounts up to 100 euros.

– IRIS Transaction Limits: Daily limits for IRIS transactions will increase to 1,000 euros, with individuals allowed up to 500 euros for general transactions and another 500 euros for payments to private professionals, such as doctors and lawyers (IRIS is an electronic payment system used for secure transactions in Greece).

Encouraging banks to rent out idle properties

The government also announced an initiative to pressure banks to release accumulated properties by doubling property taxes on homes sitting idle in bank portfolios. Starting in 2026, properties that remain vacant by December 31, 2025, will be subject to higher taxes.

Additionally, as part of efforts to open up the loan market, the Greek government has authorized non-banking institutions with the necessary permits to offer unlimited loans, including home, consumer, and business loans. This move is designed to address high rental costs and stimulate construction.

To promote transparency, the government also announced that interest rates and transaction costs for all banks will be published on the Bank of Greece website starting in mid-January 2025.

Minister Hatzidakis on Greece’s 2025 economic outlook

Greek Minister of Economy and Finance Kostis Hatzidakis.

Following the passing of the budget, Greek Minister of Economy and Finance Kostis Hatzidakis outlined four key priorities for 2025: fiscal discipline, tax cuts, supporting growth, and strengthening social policy.

The 2025 budget expects tax revenues to increase to 69.2 billion euros, up 2.4 billion from the previous year. This forecast is based on continued economic growth, higher private consumption, and inflation. It does not account for additional revenues from anti-tax evasion measures, expected in the autumn.

The government’s focus is on reducing tax evasion, with a goal of generating 2.5 billion euros by the end of its four-year term.

The 2025 budget forecasts, among other measures, a 2.3 percent growth rate, a GDP of 247.5 billion euros, a primary surplus of 6.0 percent, and 13 tax cuts.