Greece unveils EUR 1.6 billion 2026 tax cuts for families, youth, and small communities.
Greek Prime Minister Kyriakos Mitsotakis announced on 6 September 2025, a EUR 1.6 billion income tax reform at the Thessaloniki International Fair, aimed at the middle class, young people, large families, and pensioners, benefiting around 4 million citizens.
The 2026 budget will introduce cuts across most tax brackets, including a new 39% rate for incomes between EUR 40,000 and EUR 60,000. Young earners under 25 with incomes below EUR 20,000 will be exempt from income tax, while those aged 25–30 will pay reduced rates.
Families with four or more children will not pay income tax on the first EUR 20,000, and intermediate income levels will see lower rates. Property and rental income taxes will also be reduced.
Residents of small villages (under 1,500 people) will pay half the property tax in 2026 and none from 2027, while islands with populations under 20,000 will benefit from a 30% reduction in value-added tax (VAT).
The tax cuts, financed by stronger-than-expected revenues, anti-evasion measures, and a primary budget surplus, are included in the 2026 national budget, to be voted on in December 2025. The reforms aim to boost disposable income amid inflation, support families amid Greece’s low birthrate, and demonstrate fiscal progress ahead of the 2027 elections.
