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Measures announced by the government
1. Taxation
- Tax rate reductions for public and private sector employees, pensioners, professionals, and farmers, as well as additional relief for each child. Reduction of tax rates by 2 percentage points in each income bracket and an additional 2 percentage points for each child.
- Special tax relief measures for young workers, retirees and property owners. No tax for young workers up to 25 years old with income up to 20,000 euros and a reduced rate of 9%, instead of 22%, for the next 5 years, until they turn 30. Reduction of the contribution for 671,000 pensioners in 2026 and its abolition in 2027. A lower rate of 25% is being introduced for rental income from 12,000 to 24,000 euros. Until now, there was a single rate of 15% for each landlord up to 12,000 euros. However, this was subsequently increased sharply to 35%.
- Reduction of real estate tax and VAT in border villages and islands. To strengthen the Greek region, from 2026 the real estate tax will be reduced by half, and in 2027 it will be completely abolished for the first homes of villages with less than 1,500 residents. VAT is reduced by 30% on offshore islands with less than 20,000 inhabitants, exhausting the limits set by the relevant European legislation.
- Smaller subsistence allowances for 500,000 taxpayers. The subsistence requirements for homes and cars are being reduced for 500,000 taxpayers. The favorable criteria for freelancers in settlements of up to 1,500 residents are also being expanded.
2. Mortgage
- Measures for housing with the use of public property. The properties will be used to house members of the armed forces and public servants working in health and education. 2,000 apartments will be built in three former military camps for Armed Forces personnel and citizens without a primary residence. This policy will continue, returning many idle public properties to society.
3. Εconomy and entrepreneurship
Strengthening domestic investments in defense and vehicle manufacturing and financing tools for small and medium-sized enterprises. The deduction for investment expenses made in the Greek market in the defense and vehicle manufacturing sectors is doubled. This specific aid may reach up to 150 million, with the aim of promoting major investments in defense and its industry, in light of Europe's guidelines for strengthening the common security of member states. 200 million in support for extroversion, while the Development Bank provides an additional 780 million for preferential loans to SMEs. The Agricultural Entrepreneurship Fund will cover the needs of the primary sector, with activation from 2026, while 50 million will be allocated specifically for the drug innovation fund. At the same time, funding from 2 new European funds, the Social Climate Fund and the Modernisation Fund, begins.
Reference/ Citation
CNN Greece
Capital.gr
Οικονομικός Ταχυδρόμος
ΑΘΗΝΑΪΚΟ - ΜΑΚΕΔΟΝΙΚΟ
BBC
In.gr
