The 2026 budget introduces a broad package of tax reforms aimed at easing household costs and supporting economic growth.
The Greek Parliament passed the 2026 budget on 16 December 2025. It now awaits to be published in the Official Gazette and will take effect from 1 January 2026.
The budget introduces a broad package of tax reforms aimed at easing household costs and supporting economic growth.
Central to the programme is a gradual increase in the statutory minimum wage and targeted income tax cuts designed to benefit families, young people, and middle-income earners. The budget also delivers extensive real estate and VAT adjustments, including lower taxes for primary residences in smaller settlements and reduced VAT rates on designated islands. Alongside academic tax exemptions and new sector-specific measures, the legislation reflects the government’s commitment to a more equitable and growth-oriented tax framework.
Real Estate Tax Adjustments
A new intermediate rate of 25% will reduce real estate income tax. Additionally, the ENFIA property tax on primary residences in settlements with up to 1,500 residents will be reduced by 50% in 2026 and entirely abolished in 2027. In addition, it introduces a 30% VAT reduction on 19 Aegean islands.
VAT Reductions
A 30% VAT reduction will apply to islands in the North Aegean, the Prefecture of Evros (including Samothraki), and the Dodecanese islands with populations under 20,000.
Personal Income Tax Reforms
The 2026 budget will gradually raise the statutory minimum wage to EUR 950 by April 2027, alongside additional personal income tax reliefs. It introduces changes to the personal income tax system, with a focus on providing relief to families with children, young people, and the middle class. Income taxation will undergo the most substantial changes, with tax rates for middle-income earners above EUR 10,000 reduced by 2 percentage points. For instance, an employee earning EUR 20,000 will see the tax rate fall from 22% to 20%, resulting in annual savings of EUR 200.
Academic tax exemptions
A tax-free library allowance will be introduced for academic staff. Foundations and bequests will also be exempt from income tax.
Additional measures
The budget includes establishing a Pharmaceutical Innovation Fund and abolishing the 10% subscription television fee.
Earlier, Greece’s Ministry of Finance presented the Draft State Budget for 2026 to the Standing Committee on Economic Affairs of the Hellenic Parliament for discussion on 6 October 2025.
