Voted today (07.11.2025) on tax bill which has been characterized as “the biggest tax reform of the postcolonial era,” reforming the tax system on rentsthe scales, the presumptions, but also with a multitude of settings for ENFIA, VAT and electronic payments.
The objective of the tax bill is easing the burdens on middle class taxpayers (salaried employees, pensioners, those who collect rents, etc.).
It is defined new tax scale from 2026, a new special special salary for the Security Forces, while the incentives to strengthen electronic payments are also extended and for next year.
What does tax reform involve?
OR new tax scale will apply to 2026 incomes, applying 9% for the 0–10,000 segment, 20% for 10,000.01–20,000, 26% for 20,000.01–30,000, 34% for 30,000.01–40,000, 39% for 40,000.01–60,000 and 44% for excess. The salary/pension tax withholding is adjusted by reduction on an annual basis. A rate reduction is foreseen in the second tier for families with children: 18% with one child, 16% with two, 9% with three or more.
From tax year 2026, the income from real estate they are taxed at 15% up to 12,000 euros, 25% for 12,000.01-24,000, 35% for 24,000.01-36,000 and 45% above 36,000 euros.
At the same time, three-year tax exemption for long-term leases is extended for contracts that will be concluded from the publication of the law until 31.12.2026, with a maximum area of 120 sq.m., increased by 20 sq.m. for each dependent child of the lessee beyond two. The exemption is revoked if the property is made available for short-term rental within the three-year period. The exemption also applies if the property is leased for ≥6 months to Government doctors/nurses, teachers and uniformed officers. If it turns into short-term within three years, the exemption is revoked retroactively.
Exemption from the minimum presumptive income for the year of birth/adoption/fostering and the two following years. The old wording about 12 months after childbirth is also corrected. Reductions and exceptions are provided for very small settlements and municipal communities (up to 1,500 inhabitants, outside of Attica excluding P.E. Islands), large families, PWD 67%+, single parents, parents with PWD children, school canteen operators and taxi owners with up to 25% participation, as well as escalation for the first 3-5 years of activity.
Living allowances for housing are being reduced (indicatively, the amounts per sq.m. drop to 28, 45, 77, 140 and 280 euros according to scale), the presumptions of vehicles and boats are adjusted, and the minimum objective expenditure for dependent children is abolished. In addition, special rules are established for electric vehicles up to 50,000 euros with zero annual objective cost. All changes to presumptions are effective from tax year 2025.
It is planned for 2026 ENFIA reduction of 50% for natural persons with main residence in settlements of up to 1,500 inhabitants (up to 1,700 in Evros), outside Attica except P.E. Islands. From 2027, an exemption is established for the same category, with a main residence value limit of 400,000 euros.
It is extended for the whole of 2026 suspension of VAT on transfers of new buildings. A 30% VAT reduction is activated on the islands of the North Aegean, the P.E. Evros and the Dodecanese with a population of up to 20,000 inhabitants, from 01.01.2026.
Its extension is postponed to 01.12.2025 obligation to accept immediate payment services to legal entities.
It is extended for 2026 e-receipts incentive as a deduction is recognized from taxable income equal to 30% of specific expenses that are paid electronically, up to 5,000 euros. Special medical expenses count favorably with upper limits.
It is enacted new special payroll for the Hellenic Police, the Fire Brigade and the Coast Guard – Hellenic Coast Guard. Salary classes and basic salaries per salary scale/years of service, the increment factor and the concept of regular salaries are defined, with an explicit provision to preserve the personal difference. The implementation and control of payroll is assigned to the General Accounting Office of the State.
They are predicted allowances and allowances for uniformed personnel such as family allowance, special circumstances/risk allowance, position of responsibility allowance and special allowances. For a sixth working day per week, 46 euros per additional day are set, while for night work 3.33 euros per hour, subject to certification conditions and payment suspension in case of removal from duties of more than two months.
It is enacted regional allowance of 130 euros monthly for employees in North Aegean, P.E. Evros and Dodecanese, as well as specific Port Authorities and border services. A special daily compensation of 30 euros is foreseen for service in high-risk sports events, with annual limits of days and credits. Existing allowances are maintained (flying, diving, etc.).
For apprentices and school students (e.g. Probationary Constables/Constables) remuneration is defined as a percentage of the introductory basic salary, scaled by year of study. Compensation for a sixth day and night also applies during practical training. Transitionally, until the issuance of regulatory acts, the payment of existing special compensations continues so that there is no gap.
They are also provided for horizontal salary arrangements in the State. The special duties allowance of article 144 of Law 4472/2017 is adjusted upwards (indicative scales from 420-460 euros are upgraded to around 588-644 euros). A special library allowance is also provided.
100% tuition fees for children of Ministry of Foreign Affairs employees are covered in schools with a foreign language program, with a maximum of 15,000 euros per child per year and time limitations per study cycle. From 01.01.2026, a special duties allowance is established for branches of the Ministry of Foreign Affairs, as a percentage of the allowance of the Secretary of the Embassy A’, and the compensation for service abroad is modified with more favorable provisions for certain positions of responsibility. A special duties allowance of 100 euros is established for the staff of Penitentiaries and Juvenile Education Institutions, including Directors, on full/exclusive employment terms.
The subscription TV fee is abolishedfor accounts issued from 1.1.2026 while provisions are also made for the Hellenic Center for Cinema/Audiovisual Media & Creation S.A. (additional grant limit up to 50% of pay TV fee revenue 2024).
Finally, a new regime is promoted over-reduction of expenses for investments in strategic areas (defence, vehicle/aircraft construction) with specific KAD (e.g. 25.40, 29.10, 29.31, 29.32, 30.30, 30.40), expenditure limits and procedures through ministerial decisions.