emirates7 - Greek Prime Minister Kyriakos Mitsotakis on Saturday unveiled a sweeping €1.6 billion (US$1.9 billion) overhaul of Greece’s income tax system, aimed at easing pressure on the middle class and supporting families.
In his annual policy address at the Thessaloniki International Fair, Mitsotakis announced a series of tax cuts and social measures, including exemptions and benefits for households with children, pensioners, and key public sector workers. Families with four or more children will pay no income tax on the first €20,000 of earnings, a move also intended to tackle Greece’s declining birth rates.
The reform package also includes higher pay for security personnel and diplomats, continued reductions first introduced during the debt crisis, and additional relief for pensioners. Mitsotakis stressed that the measures were carefully costed and remain in line with European Union requirements.
Among the key changes are: reduced income tax rates, lower levies for annual earnings between €40,000 and €60,000, exemptions for workers under 25 earning up to €20,000, and lighter taxation on rental income. Property tax will gradually be eliminated for residents of small villages of up to 1,500 people—cut in half by 2026 and scrapped entirely from 2027. Meanwhile, VAT on remote islands with fewer than 20,000 residents will be reduced by 30 percent.
The prime minister underlined that the reforms are intended to counter rising living costs and stagnant wages, saying: “High prices are the biggest problem, and these changes directly respond to that.”
In his annual policy address at the Thessaloniki International Fair, Mitsotakis announced a series of tax cuts and social measures, including exemptions and benefits for households with children, pensioners, and key public sector workers. Families with four or more children will pay no income tax on the first €20,000 of earnings, a move also intended to tackle Greece’s declining birth rates.
The reform package also includes higher pay for security personnel and diplomats, continued reductions first introduced during the debt crisis, and additional relief for pensioners. Mitsotakis stressed that the measures were carefully costed and remain in line with European Union requirements.
Among the key changes are: reduced income tax rates, lower levies for annual earnings between €40,000 and €60,000, exemptions for workers under 25 earning up to €20,000, and lighter taxation on rental income. Property tax will gradually be eliminated for residents of small villages of up to 1,500 people—cut in half by 2026 and scrapped entirely from 2027. Meanwhile, VAT on remote islands with fewer than 20,000 residents will be reduced by 30 percent.
The prime minister underlined that the reforms are intended to counter rising living costs and stagnant wages, saying: “High prices are the biggest problem, and these changes directly respond to that.”