The 2026 budget introduces tax relief measures, including reduced real estate and VAT rates, and additional initiatives such as a Pharmaceutical Innovation Fund and the elimination of the TV subscription fee.
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.
The draft budget 2026 reaffirms the government’s focus on fiscal stability, social support, and investment-driven growth, with no new taxes and priorities centred on income growth, regional development, and targeted tax relief.
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 phased out by 50% in 2026 and fully abolished by 2027.
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.
Academic tax exemptions
A tax-free library allowance will be introduced for academic staff. Foundations and bequests will also be exempt from income tax.
Personal Income tax reforms
The budget introduces changes to the personal income tax system, focusing on providing relief to families with children, young people, and the middle class.
Support for small settlements and new mothers
Self-employed individuals in small settlements (up to 1,500 residents) and school canteens will see a 50% reduction in the minimum income threshold. New mothers will be exempt from the minimum income requirement during the year of childbirth and the following two years.
Minimum wage
The 2026 Draft State Budget proposes gradually raising the minimum wage from EUR 880 to EUR 950 by April 2027, which will also increase related social and public sector benefits.
Additional measures
The budget includes the establishment of a Pharmaceutical Innovation Fund and the abolition of the subscription television fee.
Once approved by Parliament in mid-December 2025, the measure will be published in the Government Gazette and take effect on 1 January 2026.
Earlier, 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.
