Employment Tax

Greece | Proposed new measures on various tax matters

Summary

On 6 September 2025, Prime Minister Kyriakos Mitsotakis announced a package of tax relief measures set to take effect as of January 1st, 2026. The measures primarily target young people, families with children, and property owners.

The detail

The new measures will be incorporated into a draft bill to be discussed and voted soon by the Greek Parliament. Key provisions include:

New personal income tax scale for salaried employees, pensioners and freelancers:

• A 2% reduction across all different tax bands, excluding the lowest of 9%.
• Introduction of a new interim 39% rate for €40,000–€60,000 income bracket (previously 44%).

Family and youth incentives

Families will benefit from substantial tax relief, including 0% rate for households with four or more children on income between €10,000 and €20,000. The updated scale is as follows:

• 1 child → 18%
• 2 children → 16%
• 3 children → 9%
• 4+ children→ 0% tax

In addition:

• Youth under 25 will pay 0% tax on income up to €20,000.
• Individuals aged 26–30 will be taxed at 9% on the same amount.

Property & ENFIA reforms

• A new 25% rate for rental income in the €12,000–€24,000 bracket (previously 35%).
• Real Estate Tax (ENFIA) for primary residences in villages with fewer than 1,500 residents is abolished.
• Imputed living expenses (the so-called “τεκμήρια”) are reduced by 30% for houses, vessels, and cars under certain conditions.

VAT reduction in remote islands

• VAT is reduced by 30% on remote Aegean islands with population under 20.000, applying to both standard and reduced rates.
• Specifically, the 24% standard VAT will fall to 17%, and the 13% reduced rate will fall to 9%.
• These measures expand the existing lower VAT regime, previously applied to five islands (Chios, Leros, Samos, Lesbos, and Kos), to include others such as Lemnos, Samothrace, Karpathos, Fournoi, Ikaria, Patmos, and more.

Freelancers and entrepreneurs

• The minimum presumptive income reported and taxed as of 2023 will be reduced by 50% in areas with fewer than 1,500 residents.
• For new mothers, this presumptive income requirement will be abolished for two years following childbirth.

How we can help 

These proposed measures, once enacted, could have a significant impact on individuals, families, and businesses operating in Greece. Our team is closely monitoring the legislative process and can help you assess how the changes may affect your tax obligations, optimize your tax position, and ensure compliance with the new rules once they come into effect.

If you would like to discuss how these developments may impact you or your organization, please reach out to our team.

Contact us

For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:

Lina Foka
Tax Director

Evangelia Nouskali
Tax Senior Manager

Want to know when a Regional Alert is posted?

Simply follow our Vialto Alerts page on LinkedIn and posts will be displayed on your feed. To ensure you don’t miss one, once you’re on our LinkedIn page, click on the bell icon under the banner image to manage your notifications.

Further information on Vialto Partners can be found here: www.vialtopartners.com

Vialto Partners (“Vialto”) refers to wholly owned subsidiaries of CD&R Galaxy UK OpCo Limited as well as the other members of the Vialto Partners global network. The information contained in this document is for general guidance on matters of interest only. Vialto is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will Vialto, its related entities, or the agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.

© 2025 Vialto Partners. All rights reserved.