A comprehensive “omnibus” bill is being drafted by the Greek government to implement all measures announced by Prime Minister Kyriakos Mitsotakis during the Thessaloniki International Fair (TIF), as well as to resolve pending issues across ministries in light of the Fair. The bill will be submitted to Parliament in early October, right after the draft budget, and will be passed before the end of 2025, with all provisions set to take effect from January 2026.
DETH (7)
Income Tax Cuts for Employees and Pensioners
At the core of the bill are new income tax brackets that will bring monthly savings of €80 to €150, depending on income level and number of children.
- The tax-free threshold will increase for families with children.
- Tax rates will drop from the current 22% to: 18% (1 child), 16% (2 children), 9% (3 children), and 0% (4 children).
- Young workers up to age 25 will pay 0% income tax up to a certain income.
- Ages 26–30 will be taxed at a flat 9% rate.
Example: A 25-year-old employee currently earning €980 net will earn €1,071 from 2026, as tax withholding will be eliminated.
Pensions: The End of the “Personal Difference”
Key pension reforms are also included:
- From 2026, the “personal difference” in pensions will be cut by 50%, and fully abolished in 2027.
- This will result in real pension increases for 671,000 retirees who previously saw raises canceled out.
- The annual €250 allowance for low-income pensioners will continue to be paid each November.
- Starting spring 2026, pensions will be adjusted for inflation and GDP growth.
Real Estate: Lower ENFIA, Fairer Rent Taxation
Major changes for property owners:
- A new 25% tax bracket will apply to rental income between €12,000–24,000, reducing tax burdens on middle incomes.
- A landlord earning €20,000 annually from rents will pay €800 less in taxes from 2026.
- The tax exemption for vacant properties offered for long-term rental will remain, to encourage more housing availability.
- The ENFIA property tax will be reduced by 50% in 2026 for primary residences in towns with less than 1,500 residents and fully abolished in 2027.
- Additionally, VAT will be cut by 30% on at least 20 remote islands, supporting the regions.
Freelancers and Self-Employed: Lower Imputed Income
The bill introduces a 30% reduction in living expense presumptions (“tekmiria”) and cuts imputed income, especially for small businesses in rural areas:Thousands of professionals will no longer be taxed on inflated “deemed” income above what they actually earn.
Allowances and Benefits: Extra Support for Tenants, Academics, and Families
Additional financial support includes:
- One-month rent refund for tenants, starting November 2025.
- Abolition of the 10% fee on pay-TV subscriptions, cutting monthly costs by €2–5 on platforms like Netflix, Cosmote TV, and Nova.
- Introduction of a tax-free “library allowance” for university faculty and researchers.
Timeline of Measures – What Happens When
| Timeline | Key Measures |
|---|---|
| October 2025 | Bill submitted to Parliament |
| November 2025 | €250 pension bonus & rent rebate for tenants |
| January 2026 | New tax brackets, ENFIA reductions, rent tax reform |
| Spring 2026 | Minimum wage increase (€910–920), public sector wage adjustments |
| Throughout 2026 | Real increases in take-home pay and pensions |
| 2027 | Full impact seen in tax returns & final removal of personal pension difference |
Over €4 Billion Back into the Economy
The government estimates that within 18 months, these measures will channel over €4 billion back into the real economy, via:
- Tax cuts
- Income increases
- Direct support for households and professionals
For the first time in years, the middle class sees real relief – with noticeable increases in take-home income and meaningful tax fairness.
Source: pagenews.gr