The bill for tax reductions and increases in uniforms was submitted to Parliament

Deposit yesterday (27.10.25) to the Parliament by the Ministry of National Economy and Finance (SEC) of the bill on “Tax reform for the demographic and the middle class – Support measures for society and economyยป.

According to the explanatory report of the Ministry of Finance, the bill includes a set of coherent measures with the main objective of supporting the entire society and the economy, especially the average family, young people, employees, pensioners, freelancers, as well as the Security Forces and other special categories of employees who work under special conditions.

The most important and comprehensive tax reform of the personal income tax scale in recent years is being implemented, which aims to boldly reduce the tax burden and strengthen disposable income for employees, pensioners, farmers and other self-employed people, with an emphasis on middle income earners, families with children and young people.

Specifically hereby:

  • the scale for calculating income tax from salaries, pensions and business activity for natural persons is fundamentally reformed.
  • the real estate income tax scale for natural persons is streamlined,
  • the subsistence allowances taken into account for the determination of personal income tax are reduced,
  • New mothers and
  • the reduction of imputed income also extends to individual businesses in settlements with a population of up to 1,500 inhabitants.

At the same time, tax incentives are given to support the region, such as the gradual abolition of the Unified Property Ownership Tax (N.F.I.A.) for main residences in small settlements and the reduction by 30% of value added tax (VAT) rates in the remote Aegean islands, with a population of up to 20,000 inhabitants.

Furthermore, successful tax measures and incentives are extended for the year 2026 to support key sectors for the Greek economy, combat tax evasion and address the housing issue, such as the suspension of VAT. for newly built properties, the tax incentives for the use of electronic means of payment and the three-year exemption from real estate income tax for properties available for long-term lease, as well as for special categories of employees (medical and nursing staff, teachers of all levels of public education and uniformed members of the Armed Forces and Security Forces).

Wage regulations are introduced, on the one hand for the Security Forces (S.A.) (Hellenic Police, Fire Brigade and Coast Guard – Hellenic Coast Guard) and on the other hand for special categories of employees, who work under special conditions.

Specifically, with the proposed regulations, a new salary regime is first introduced for the executives of the S.A., with which a salary system is established that takes into account the working conditions, the risk and the offer to the society of these bodies. The purpose of the regulations is the institutional upgrade, strengthening the attractiveness of the SAs. as a professional choice and the stimulation of the loyalty of their executives.

Further, regulations are hereby introduced to increase the salaries received by special categories of employees, such as correctional officers, officers and employees of the Ministry of Foreign Affairs, and employees who hold a single undivided master’s degree.

With these targeted interventions, the salaries of the above categories of employees and functionaries are adapted to the increased service requirements and the balance in the field of remuneration between related branches is restored, with simultaneous alignment with the more general regulations of the uniform salary.

Read the tax reform bill HERE

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