A wide and brave package meter Tax relief and support for families with children and middle class, aiming to tackle demographic and desertion of remote regions, announced today (06.09.2025) from its step TIF the prime minister Kyriakos Mitsotakis.
From the step of the exhibition, Kyriakos Mitsotakis reiterated the government’s strategy to stimulate the development and relief of society from precision, not by benefit policy but with Permanent reduction of taxes and with substantial medium -income support measures. He recalled that the government has already reduced more than 70 taxes, and made it clear that the new package of measures that will be the focus of economic policy in 2026 is fully costly and with the aim of maintaining fiscal stability.
In this context, the new package includes:
- Tax cuts by 2 percentage points for all (except for 9%) and additional relief per child. The package includes zero tax for employees up to 25 years up to 20,000 euros, a new 39% intermediate for incomes of 40,000–60,000 euros, lease relief, ENFIA reductions and VAT on small islands, smaller presumptions, a program of 2,000 apartments and a bunch of financial tools for SMEs. The scale of 10,000–20,000 euros falls from 22% to 20% and declines further on the basis of children: 18% with one child, 16% to two, 9% for triple, 0% for many children. In an annual income of 20,000 euros, the benefit reaches 600 euros with two children, 1,300 to three and 1,680 with four. Applies to individual, not family income. It establishes an intermediate rate of 39% for 40,000–60,000 euros. The application to withholding begins on 01.2026.
- Support to young people with zero tax for employees up to 25 years of age up to 20,000 euros and a rate of 9% (instead of 22%) up to 30. Indicatively, up to 25 years: a benefit of 1,283 euros to 15,000 and 2,480 euros to 20,000. For 26–30 years: benefit 1,300 euros to 20,000.
- Half the personal difference for pensioners in 2026 And it is abolished in 2027, which is equivalent to an additional benefit for 671,000 pensioners, in addition to relieving reduced tax rates and the established annual increase in their earnings.
- In rents from rents, a 25% rate is established For 12,000–24,000 euros (remains 15% to 12,000) to break the jump to 35%. With a steady “return of a rent” every November, owners and tenants are motivated to declare real rents. Once compliance is enhanced, further reductions in property taxation will be considered.
- ENFIA in the region is reduced by half in 2026 and removal in 2027 For the first residence in villages under 1,500 inhabitants, as an incentive for residence/return of the population.
- Reduced VAT on acrimonious islands under 20,000 inhabitants by 30%beyond the five already in force, with expansion to areas of North Aegean, Dodecanese and Evros.
- Smaller living presumptions for residences and cars For 500,000 taxpayers while the favorable criteria for freelancers in settlements up to 1,500 residents are expanded.
- Affordable roof with utilization of public landthrough the concession of three former camps (Moschato, Ziaka Thessaloniki, Manousogiannakis Patras) for the construction of 2,000 apartments: 25% for Armed Forces executives and 75% for citizens without first residence.
- Defense Investments and Vehicle Industryby doubling the discount on investment costs in Greece for defense and construction of vehicles, up to 150 million, aligned with European guidelines for joint security.
- SME Support and Financial Tools With the national extroversion and industry licensing bill. Extraversion 200 million notices, 780 million via TEPIH III for loans, agricultural entrepreneurship fund from 2026, 50 million for drug innovation, 700 million for energy upgrading, 200 million to reduce energy costs and 300 million in green ships.
The technical details of each intervention (criteria, transitions, validity dates) will be presented at a press conference at the Ministry of Finance on Monday 08.09.2025.