TIF 2025 – New €1.7 Billion Support Package Finalized: Tax Relief, Family Support & Permanent Measures

Instead of a broad-based “basket” of handouts, Prime Minister Kyriakos Mitsotakis heads to Thessaloniki this Friday with a set of targeted and permanent interventions, aiming to address critical modern challenges: the housing crisis, demographic decline, and support for the middle class, which is considered the backbone of the Greek economy.

According to latest information, the support package presented at the 2025 Thessaloniki International Fair (TIF) will exceed earlier estimates of €1.5 billion, reaching €1.7 billion. The focus will be on tax relief, support for families with children, young couples, and uniformed personnel. Most notably, these measures will be of a permanent nature, implemented annually from now on.

What’s Included in the Package

Confirmed measures include:

• Tax relief for the middle class: Income tax cuts focused on incomes between €20,000 and €50,000, with priority given to families with children, through increased tax-free thresholds and child-related tax credits. Minor adjustments are also expected in freelancers’ imputed income criteria.
• Affordable housing initiatives: Measures include the introduction of a “one rent free” benefit starting in November, expansion of the “My Home”program, and social housing through public-private land development agreements, offering low-rent housing options.
• Support for uniformed personnel: Beyond the new €100/month allowance for hazardous and special working conditions (effective July 1, 2025), a new salary structure for the Armed Forces will also be unveiled in detail in the coming days.
• Family support measures: Additional tax deductions for dependent children will be introduced, with scaled increases for families with multiple children—especially large families (four or more children)—as part of the national priority to combat demographic decline.
• Salaries and pensions: The government plans new salary increases, lower social security contributions, and adjustments to the “personal difference” in pension calculations. There is also consideration for expanding the new annual €250 permanent allowance, paid every November.

What’s Left Out

To preserve fiscal resilience and make room for targeted relief, broad-based, untargeted benefits without income or family criteria are deliberately excluded.

Not included in the 2025 package:

• General reductions in VAT or indirect taxes, as it remains uncertain whether businesses would pass these cuts on to consumers.
• Increases in the tax-free threshold for single individuals (currently €8,636), and broad reductions in tax ratesbeyond those aimed at the middle-income brackets.

Why Now?

The government’s motto is clear: “Support society while preserving stability.” The final decisions were made possible thanks to the strong overperformance of the state budget, with a primary surplus of €7.9 billion in the first seven months of 2025 and tax revenues exceeding €40 billion.

This positive fiscal momentum provides the necessary room for structural and permanent interventions without jeopardizing Greece’s macroeconomic balance or fiscal discipline.

The Prime Minister’s keynote address at the TIF is expected to outline the government’s forward-looking agenda, combining economic prudence with socially targeted policy, aiming to boost fairness, growth, and demographic sustainability.

Source: pagenews.gr