New municipal fee rules under Greece’s updated Local Government Code are sharpening how cities charge businesses—introducing more granular criteria based on floor area, business activity type (via KAD codes), and annual turnover. The Cleanliness and Lighting Fee now features a more detailed structure, while the Fee on Gross Income, levied by municipalities on certain sectors, is being integrated into a streamlined digital collection system managed by the Independent Authority for Public Revenue (AADE).
What’s Changing for Businesses?
Businesses aren’t paying municipal fees for the first time—under the previous framework, most already paid a Cleanliness and Lighting Fee based on property size and use, as well as a gross-income-based fee for specific activities. What’s new is the level of detail municipalities can now apply when setting charges.
A More Nuanced Cleanliness and Lighting Fee
The biggest shift lies in the Cleanliness and Lighting Fee. Previously, calculation relied mainly on square meters and a single usage-based coefficient set by each municipality. Now, coefficients are divided into ‘general’ and ‘special’ categories—with up to five general coefficients covering: residential use, vulnerable households, economic activities with high environmental impact, other economic activities, and non-profit or public-benefit uses.
For businesses, classification no longer hinges solely on broad categories like “commercial space.” Municipalities may now consider the specific nature of the activity—including its KAD (Greek Activity Code), scope of operations, and data drawn from official sources such as AADE, the General Commercial Registry (GEMH), OpenBusiness, past municipal tax declarations, and other public databases. This means two businesses operating in similar-sized commercial premises—but with different environmental footprints—could face markedly different fees. For example, a restaurant or seasonal tourism operator may be charged more than a small office-based consultancy, even if both occupy the same floor area.
Special coefficients may also reflect property type, surface area, usage, geographic zone, or other objective characteristics. However, an upper limit applies: no general or special coefficient may exceed ten times the base coefficient applied to residential properties.
Gross Income Fee: Shift in Collection, Not Scope
The fee on gross income continues to apply only to specific sectors—primarily food service, hospitality, entertainment, and other activities falling under the special municipal tax regime. Unlike the Cleanliness and Lighting Fee, it’s not tied to real estate but calculated on gross revenue.
The key operational change is in collection: the fee is now borne by the customer and must be itemized separately on invoices—marking a shift toward transparency and alignment with national digital tax systems.