Greece’s Ministry of National Economy and Finance published a newspaper interview with Deputy Minister Giorgos Kotsiras setting out the headline assumptions in the 2026 state budget and the main tax and income measures expected to apply in 2026, including a redesigned income tax scale aimed at lowering liabilities for young workers and families with children. The budget forecasts 2.4% growth in 2026, a primary surplus of 2.8%, public debt falling to 138.2% of gross domestic product, and unemployment declining to 8.6%, alongside 10.2% investment growth. The tax reform is described as reducing income tax to near zero for employees up to 25 and cutting it sharply for those up to 30, with relief linked to the number of children, plus targeted measures for regional support and incentives to increase housing supply. Measures cited for 2026 include higher net pay for employees and pensioners from January via the new tax scale and changes to the offsetting of the “personal difference”, salary increases for armed forces staff retroactive from October, reduced value added tax on remote Aegean islands, abolition of the subscription television levy for more than one million households and businesses, and further reductions in ENFIA property tax from March for about one million owners in villages; lower tax for nearly 500,000 individuals is also linked to a cut in deemed living-expense “tekmeria”. Minimum wage and across-the-board public sector pay increases are planned for April, while November would again bring a one-month rent refund and an annual EUR 250 payment to low pensioners and people with disabilities; the interview also noted expected tax reductions for self-employed workers and farmers in their 2026 tax filings. Kotsiras also referenced the election of Minister Kyriakos Pierrakakis as President of the Eurogroup.
Ministry of National Economy and Finance (Greece) 2025-12-22
Greece’s Ministry of National Economy and Finance outlines 2026 budget projections and income tax reform focused on young workers and families
Greece’s Ministry of National Economy and Finance outlined the 2026 state budget, highlighting a redesigned income tax scale to lower liabilities for young workers and families. The budget projects 2.4% growth, a 2.8% primary surplus, and public debt reduction to 138.2% of GDP. Key measures include tax cuts for employees under 30, regional support incentives, and tax reductions, alongside planned wage increases and benefits for pensioners and public sector workers.