In a speech on the demographic challenge, Greece's Ministry of National Economy and Finance set out the government’s policy package linking tax relief and other support measures to demographic objectives, with key elements due to start applying from January 2026. The minister highlighted planned income tax changes that would zero the tax in the lowest brackets for families with four or more children and reduce the tax rate by two percentage points per child in other brackets. The package also includes phasing out ENFIA over two years for settlements with fewer than 1,500 residents, and reducing taxation for young labour market entrants by setting the lowest-bracket tax to zero for new entrants and lowering it for those under 30. Separately, the speech referenced measures announced on Easter Tuesday that were being implemented, including a EUR 250 payment to pensioners and the return of one month’s rent to 80% of renters; employees would see the January tax changes through higher take-home pay, while self-employed would see them later through tax assessment. Macroeconomic figures cited included a 2.4% growth forecast in the 2026 budget, with the demographic-related tax reform contributing 0.6 percentage points, and an investment-to-GDP ratio projected at 17.7% in 2026 versus around 11% in 2019. Implementation of the tax reform measures announced at the Thessaloniki International Fair was presented as starting from early January 2026, while the ENFIA changes would be delivered over a two-year period.
Ministry of National Economy and Finance (Greece) 2025-11-26
Greece's Ministry of National Economy and Finance outlines demographic-linked tax reform from January 2026 including phased ENFIA abolition in small settlements
Greece's Ministry of National Economy and Finance outlined a policy package linking tax relief to demographic goals, effective January 2026. Key measures include zero income tax for families with four or more children, phased-out ENFIA for small settlements, and reduced taxes for young workers. The reforms are expected to contribute 0.6 percentage points to a 2.4% growth forecast in the 2026 budget.