Greece's Ministry of National Economy and Finance published an overview of tax and social contribution reductions, setting out a new package of tax cuts due to take effect from 1 January 2026 as announced at the Thessaloniki International Fair. The ministry also reported that, since 2019, the government has implemented 83 reductions in taxes and contributions. Key measures flagged for 2026 include a reduction and redesign of the income tax scale for employees, pensioners, farmers and self-employed individuals, with an emphasis on families with children and the middle class; the introduction of an intermediate 25% rate (from 35%) for income tax on rental income; and an adjustment of the presumptive living expense system. The package also includes a phased abolition of ENFIA for settlements with up to 1,500 residents (50% reduction in 2026 and full abolition in 2027), a 30% cut in the VAT rate for islands in the North Aegean Region, the Evros regional unit and certain Dodecanese islands with up to 20,000 residents, an income tax exemption for foundations and bequests, a tax-exempt library allowance for university faculty and researchers, and abolition of the subscription television fee. Of the 83 total reductions, 25 relate to indirect taxes, with examples including VAT cuts to 13% from 24% for urban, suburban and overland rail transport and for baby products, and a suspension of VAT on new buildings. Most of the newly announced measures are set to apply from 1 January 2026, while ENFIA relief for eligible small settlements is staged through 2026 with full abolition in 2027.

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