“Major Tax Cuts Unveiled: Relief for Low and Middle Incomes”

At the 2025 Thessaloniki International Fair, the Prime Minister is expected to announce tax reductions benefiting millions of wage earners, pensioners, and small business owners. The government’s aim is to strengthen the middle class and restore the injustices created during the memorandum period, with a focus on incomes up to €50,000. These tax cuts, according to leaked plans, will include changes to tax brackets, reliefs for families with children and large families, as well as incentives for property owners.

The Winners of the Tax Cuts

1. Wage Earners and Pensioners: Tax Relief for Incomes Above €10,000

• Around 3.5 million taxpayers are expected to benefit from the tax cuts. Wage earners and pensioners will see changes starting in January 2026, with a reduction in monthly tax withholdings. Tax return settlements in 2027will show the full benefits.
• The introduction of intermediate tax rates is under consideration, with the 9% starting rate remaining for lower incomes. The 44% rate will apply to incomes above €50,000.

2. Families with Children and Large Families: Tax Relief and Higher Exemption Limits

• The exemption limits for taxpayers with one, two, or three children are expected to rise by €1,000 to €2,000 per child.
• For large families, tax exemptions will be more significant, with full tax exemption for incomes ranging from €40,000 to €50,000 (pending confirmation).
• Property tax (ENFIA) reductions for families with children are also under consideration.

3. Property Owners: Tax Cuts and Incentives for Housing

• A reduction in tax for rental income is being considered, with the addition of an intermediate rate of 25% for rental incomes ranging from €12,000 to €35,000.
• The goal is to reduce tax burdens, curb tax evasion, and encourage property owners to release vacant properties onto the market to address the housing crisis.

4. Self-Employed: Tax Reductions and Improvements in the Tax System

• The self-employed will benefit from changes to the tax brackets, and improvements are expected in the presumptive income tax system.
• A reduction in the presumptive income is under consideration, potentially to 90% of the minimum wage, which would significantly alleviate costs for many small businesses.

These tax cuts are expected to provide significant relief to households and businesses that have borne the heaviest tax burdens in recent years, particularly benefiting the middle class and families with children. This move comes as a response to the challenges of the Greek economy and could help strengthen social cohesion, provided it is implemented effectively.