Thessaloniki International Fair: How 4 Million Taxpayers Will Benefit

A critical mass of four million citizens will benefit from the new tax measures announced by Prime Minister Kyriakos Mitsotakis at the 89th Thessaloniki International Fair (TIF).“Without fiscal stability, all measures would be like an empty shirt,” the Prime Minister stressed.

The new tax package focuses on the middle class, young people, and large families, aiming to boost disposable income and address the demographic challenge that has taken on national proportions.

Key Elements of the Tax Package – Who Benefits

1. Young People up to 30 Years Old

• Zero income tax for employees up to 25 years old earning less than €20,000
• Tax rate reduction to 9% for ages 26–30 (down from 22%)

2. Tax Cuts for All

• All personal income tax rates reduced by 2 percentage points
• New intermediate tax rate of 39% for incomes between €40,000 and €60,000

Special Benefits for Families with Children

• Family with 2 children and €20,000 income: annual benefit of €600
• With 3 children: benefit of €1,300
• With 4 children: benefit of €1,680
• For an income of €30,000, benefits may reach up to €4,100, depending on the number of children

Measures on Property Tax, VAT, and Rental Income

• From 2026: 50% reduction of ENFIA property tax for main residences in settlements with up to 1,500 inhabitants
• From 2027: Full abolition of ENFIA in those same settlements
• 30% VAT reduction in remote islands with populations under 20,000
• Reduced tax rates on rental income up to €24,000 with new intermediate brackets

Reductions in Presumptive Income (Deemed Expenses)

• 30% reduction in deemed expenses for homes and vehicles
• New calculation method for deemed incomes for self-employed individuals

Pensioners and Public Sector Employees

• The personal difference for older pensioners will:
  • Be halved by 2026
  • Be fully abolished by 2027
• Upgraded salary scales for uniformed personnel and diplomats

A Reform of Historic Scale

The Prime Minister described the tax plan as a “historic reform”, with aims to:

• Restore trust
• Reduce inequalities
• Strengthen social cohesion

“The time of the middle class and the youth has come,” Kyriakos Mitsotakis emphatically stated.

Source: pagenews.gr