Greece's Ministry of National Economy and Finance, in a speech by Minister Kyriakos Pierrakakis, detailed a wide-ranging tax reform package presented as a “tax reform for demographics and the middle class”, building on measures announced by the Prime Minister at the Thessaloniki International Fair. The package was costed at EUR 1.76bn for 2026 and EUR 2.5bn for 2027, with changes to the direct tax scale affecting around four million people. Key measures include lower income tax rates for incomes above EUR 10,000, with enhanced relief for families and young workers. For families with three children, the 10,000–20,000 bracket rate falls from 22% to 9%, while it is set to zero for families with four or more children, with the ministry indicating the impact for wage earners will be visible from January 2026; the speech cited around 142,000 three-child families and 25,000 large families. For young people, income tax rates up to EUR 20,000 are set to zero for those up to age 25, and the 10,000–20,000 bracket rate drops from 22% to 9% for those aged 26–30. For the middle of the income distribution, rates for EUR 10,000–40,000 are reduced by two percentage points per bracket (with an additional two-point reduction per child), and a new 39% rate is introduced for EUR 40,000–60,000. The package also targets housing and regional policy by phasing out ENFIA over two years for primary residences in settlements with up to 1,500 residents (covering 12,720 of 13,585 settlements and benefiting over one million people), cutting VAT rates by 30% on remote islands with up to 20,000 residents (24% to 17% and 13% to 9%) and expanding beyond the five Aegean islands currently receiving reduced rates, and introducing a 25% intermediate rate on rental income from EUR 12,000 to EUR 24,000 (from 35%). It extends the tax exemption for vacant properties that are rented out to 2027, extends the VAT exemption for new buildings for 2026, and expands a ban on new short-term rentals in three municipal districts of Athens. Additional elements include changes to presumptive taxation (halving the minimum imputed income for self-employed people living in settlements up to 1,500 residents, removing it for new mothers for two years after birth, and cutting “living expense” presumptions by an average of 30% with car presumptions moving from engine size to emissions), a two-year phase-out of pension “personal difference” by 2027, pay-scale reforms for uniformed services from October, 200% tax super-deductions for specified defence and technology manufacturing activities, the abolition of a 10% subscription television levy, and the creation of a EUR 50m-per-year Pharmaceutical Innovation Fund. The ministry indicated that detailed explanatory materials and lists (including eligible settlements) would be provided, and flagged a forthcoming legislative initiative to Parliament covering the framework for managing charitable foundations, including income tax exemptions for income from foundations and bequests.

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