Greece proposes major tax-cut package to boost household income

The Greek government is presenting a sweeping tax-cut and savings incentive package to the cabinet. The legislation, introduced by Economy and Finance Minister Kyriakos Pierrakakis and deputy ministers Thanos Petralias and Dimitris Markopoulos, aims to increase disposable income and encourage long-term saving. The measures are estimated to be worth €1.76 billion in 2026 and €2.5 billion in 2027.

Key components of the overhaul include lower income-tax rates for individuals earning more than €10,000 annually, with significant reductions for families with children. For example, families with three children could face a 9% tax rate in the relevant bracket, while qualifying larger families may pay no tax in that bracket. Additionally, income up to €20,000 for individuals aged 25 or younger is expected to be exempt, a move estimated to affect approximately 270,000 people.

Other measures include the gradual elimination of the annual property tax (ENFIA) for primary residences in 12,720 small settlements and a 30% reduction in value-added-tax rates on certain remote border islands. However, officials noted that rising energy and fuel costs may threaten to offset the purchasing power gains intended by the relief.