Germany and Greece announce major tax and wage reforms

Germany has approved an income tax reform plan aimed at providing relief to families and low-to-middle-income earners. The measures, to be implemented gradually starting in 2027, include an increase in Kindergeld (child benefit) from 259 to 267 euros per month, with a further rise to 272 euros in 2028. Additionally, the tax-free allowance (Grundfreibetrag) is set to increase to 12,564 euros in 2027 and 12,900 euros in 2028.

In Greece, the government is moving toward increasing the minimum wage to over 950 euros by 2027, a move expected to benefit approximately 1.3 million workers. Concurrently, tax reforms are being planned for self-employed professionals to reduce their burden. These include lowering income tax rates for specific income brackets and reviewing the method for calculating minimum presumptive income to better reflect actual earnings. The government is also considering changes to living standard criteria to reduce the gap between real and presumptive income for approximately 320,000 professionals.