‘Face all’ for TIF puts the government and the financial staff, with scenarios giving and taking on what new reductions will be wearer that will be announced by the prime minister in September.
The new TIF tax reduction package will concern 2026 and is not related to the 3 meters high of € 1.1 billion announced last week, which is immediate validity, and relate to a rental rented to tenants, reinforcement of 250 euros each November to retirees, and the complementary RIP.
Now, the government’s “machines” are warming up in September, when it will have the full fiscal picture that will allow it to finalize the new package of measures.
Barrage
Already, Prime Minister Kyriakos Mitsotakis, in an interview, announced that the next TIF would be focused on further tax cuts to favor the middle class as the moves will be focused on “middle” incomes.
For his part, the Deputy Prime Minister, Kostis Hatzidakis, has spoken of a holistic intervention in taxation by the Prime Minister at the TIF, thus outlining major changes in the field of taxes. In an interview, he stresses that if the positive forecasts for the execution of the budget are verified, there will be a new round of initiatives in September.
A similar announcement has been made by Finance Minister Kyriakos Pierrakakis, confirming that the government’s goal is to continue efforts to reduce taxes, while recalling that about 72 taxes and direct contributions have been reduced since 2019, referring to the TIF and the Prime Minister’s speech.
In essence, the factors that will judge the “depth” of the interventions are how the budget will go, as Kostis Hatzidakis said, as well as the collection of revenue, as the tourist season ends by September. The outcome of Greece’s open “fronts”, such as the issue of activating the escape clause to increase defense spending, which will determine the fiscal space that the country can release.
What are the scenarios for the TIF package
There are quite a few areas that the government is considering intervening, with an emphasis on the middle class relief, without necessarily implementing all the measures considered, as the “account” would significantly rise, and the governors make it clear that they will not risk fiscal stability.
According to unconfirmed information, the measures considered are both tax and levy cuts, and more broadly in changing the tax framework.
In particular, they are examined:
1. Interventions to tax rates on incomes of EUR 20,000 and 40,000 per year, with an intermediate tax rate for income from EUR 10,001 to 20,000 and changes in the enforcement limit of the maximum tax rate of 44%, which currently applies to incomes above EUR 40,000.
2. Changing the tax scale relating to rental income in order to reduce tax burdens for owners. The current scale today is 15% for the first 12,000 euros, 35% for income from 12,001 to 35,000 euros and 45% for incomes above 35,000 euros
3. New interventions are also being considered the issue of housing crisis as the rental scenario for young people, probably up to 35 years old, low -paid and pairs with small incomes, but also a interest rate subsidy for vulnerable borrowers returns.
4. The reduction in the presumption of living is being considered by the Government, as the executives of the Financial Staff have been announced. Thoughts are about the reduction of a 30%living presumptions.
5. Another intervention is concerned with a new reduction of insurance contributions by 0.5 percentage points, following a reduction by 1% from January 1, 2025.
6. An increase in discount rates in ENFIA for low and medium real estate with a fair value of up to 250,000 euros is considered
7. The same real estate field examines the reduction of the amount of basic real estate tax in areas with zone prices up to 1,500 euros and more zone price for a zone price of EUR 1,501 to 2,500 euros
8. Complete abolition of ENFIA when it comes to first residence as long as its value does not exceed 150,000 – 200,000 euros
9. Increasing income and assets for 50% reduction in ENFIA or even complete discharge for natural persons