“Zero Income Tax for Young People up to 25” – All the Measures Announced by the Prime Minister

Greek Prime Minister Kyriakos Mitsotakis took the stage at the 89th Thessaloniki International Fair (TIF), presenting a comprehensive review of the past decade and outlining the government’s strategic plan for the coming years.

“The country moved from bankruptcy to recovery,” he stated, emphasizing that income support is the primary shield against inflation.

He stressed the importance of fairly redistributing the benefits of economic growth, maintaining the balance between lower taxes and higher social spending as a success of consistent economic policy.

Key Highlights of the Announcements

1. Income Tax Cuts for Families

• Income tax will be reduced to:
  • 18% for families with one child
  • 16% for families with two children
  • 9% for three-child families
  • 0% for families with four or more children
• Annual benefit of up to €4,100 for a four-child family earning €30,000

2. Tax Exemption for Young Workers

• Zero income tax for workers up to 25 years old earning less than €20,000
• Tax rate reduced to 9% (from 22%) for ages 26–30
• “An unprecedented decision,” said the Prime Minister, aiming to support young professionals entering the job market

3. Measures for the Housing and Real Estate Market

• 25% flat tax on rental income between €12,000 and €24,000
• Construction of 2,000 new apartments on former military land:
  • 25% allocated to Armed Forces personnel
  • 75% for citizens without a primary residence

4. Tax Relief for Rural and Island Areas

• From 2026: 50% ENFIA property tax cut in villages with <1,500 residents
• From 2027: ENFIA abolished entirely in those same areas
• 30% VAT reduction in remote islands with populations under 20,000

5. Reduction of Presumptive Income (Deemed Expenses)

• Deemed expenses for homes and cars to be significantly reduced
• About 500,000 taxpayers to benefit
• More favorable criteria for freelancers in small settlements (<1,500 residents)

Defense, Salaries, and Investment Incentives

• Salary increases for military, police, firefighters, coast guard, and diplomats under a new salary framework
• A total of 151,422 personnel will benefit
• Double tax deduction for investments in defense and vehicle manufacturing
• Additional €50 million to strengthen the Pharmaceutical Innovation Fund

Institutional Reforms Aimed at 2030

1. National High School Diploma (Εθνικό Απολυτήριο)

• A new standardized system for university entry
• To be implemented over the next four years, with cross-party consensus

2. Overhaul of the National Health System (ESY)

• Goal: depoliticization of public healthcare
• “I prefer to listen to patients and doctors rather than union megaphones,” said the PM

3. Modern Urban Planning and Full Land Registry

• Urban planning departments to be removed from municipal control
• Integrated into the National Land Registry to eliminate corruption and clientelism

4. National Energy Map

• A long-term strategy for energy autonomy
• Aims to ensure affordable electricity prices for all

Source: pagenews.gr