Clearly focused on supporting the citizens of the middle class – the social group that has been the backbone of the Greek economy over time and throughout the crisis, the greatest weight has been borne – government Designs a new interventions package aimed at tax relief.
The draft government, which is being processed by the Financial Staff, is expected to be officially presented by Prime Minister Kyriakos Mitsotakis as part of the 89th Thessaloniki International Exhibition (TIF) next September.
Note that this new package is adding to the Permanent interventions of 1.1 billion euros, announced within the weekwill be implemented within the year and relate to the support of tenants, low -income pensioners, and the strengthening of the Public Investment Program (PDP).
The magnitude of the intervention and its perimeter will be determined in the coming months, after there is a clear picture of the economy and the fiscal space to be created.
According to analysts and financial executives, two are the keys to determine the package: The first concerns the Impact of an International Commercial War ongoing and the second tourism course.
Secondly, citizens’ response to their obligations to the state is set, as, as the same executives note, a stable payment culture has been developed, which will be difficult to disturb under conditions of the economy.
The content of the measures will move on two levels: tax and insurance and interventions will be implemented by 2026, provided that there will be no adverse developments that will halt the positive course of the Greek economy.
According to government sources, targeting is dual, on the one hand strengthen the available income of the middle classes and on the other hand To consider a stable and socially lawful tax environment, capable of acting as a lever for enhancing consumption and attraction of investment.
As the prime minister pointed out in a recent interview, “the next TIF, in terms of tax reduction, will be aimed at reducing middle class taxes.” At the same time, he stressed that “the economy is going well, without disturbing the fiscal balance, and as far as foreign houses continue to upgrade the Greek economy, the Greek citizens can expect better days.”
The Financial Staff has set the end of August as a milestone to finalize the project, so there will be a clear picture of the state budget and tax revenue performance. Reportedly, the basic axes of the measures being processed include:
1. Reforming the tax scale for natural persons
The government is gearing up to corrective interventions that will reduce the tax burden on those with income between 20,000 and 40,000 euros a year, a range determined as a “middle class”. Examined:
- The addition of an intermediate tax rate for income from 10,001 to 20,000 euros in order to moderate the sudden increase from the initial rate of 9% to 22%.
- The revision of the 44%of the top tax rate, which is currently applied for incomes of more than 40,000 euros.
2. Lighting for property owners
The aim is to relieve the tax burden on rental income, with modifications to the current taxation scale, either by reducing existing rates or by adding new intermediate levels.
The existing scale:
- 15% for the first 12,000 euros
- 35% for income from 12,001 to 35,000 euros
- 45% for incomes over 35,000 euros
3. Housing Policy with social sign
In planning phase, new interventions to tackle the housing crisis are found, with an emphasis on subsidy for vulnerable borrowers as well as rented rent for young, low -wage and pairs with limited income.
4. Reduction of living documents
The Ministry of Finance is considering a 30%reduction in living presumptions as a means of combating tax injustices and rationalizing the tax base, in order to be more aligned with the actual tax capacity of citizens.
5. Further reduction in insurance contributions
In 2026, a new reduction in insurance contributions is planned by 0.5 percentage points, in practice reinforcing the workers’ disposable income and strengthening the competitiveness of the Greek economy.
The package of measures is estimated to be a key pillar of the economic policy of the next two years, as the country continues to follow the trajectory of growth steadily and the fiscal conditions allow it.