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 1^st, 2026. The measures that will be implemented mainly refer to young people, families with children, and property owners.

The detail

The new measures that will be incorporated into a draft bill to be discussed and voted soon by the Greek Parliament are as follows:

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

• A 2% reduction to all the different tax bands, excluding the lowest of 9%.
• New interim 39% rate for income bracket € 40.000 – € 60.000 (previous rate 44%).

Family and youth incentives

• Families will enjoy substantial tax relief, including 0% rate for households with 4+ children for income € 10.000 – € 20.000, as following:
  • 1 child → 18%
  • 2 children → 16%
  • 3 children → 9%
  • 4+ children→ 0% tax

• Youth under 25 pay 0% tax for income up to € 20.000, while ages 26 – 30 pay 9% for the same aggregate.

Property & ENFIA reforms

• New 25% rate for rental income in the bracket € 12.000 – € 24.000 (previous rate 35%).
• Real Estate Tax (namely ENFIA) for primary residences in villages with <1.500 population is abolished.
• Imputed living expenses (so called “τεκμήρια”) are reduced by 30% for houses, vessels and cars under certain circumstances.

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 falls to 17%, and the 13% rate to 9%. The measures expand the lower VAT regime already applied for five islands (namely Chios, Leros, Samos, Lesbos, and Kos), to include numerous others such as Lemnos, Samothrace, Karpathos, Fournoi, Ikaria, Patmos, and more.

Freelancers and entrepreneurs

• The minimum amount of the presumptive income reported and taxed as of the year 2023 is reduced by 50% in areas with <1.500 population, while it is abolished for new mothers for two years after giving birth.

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

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