• Young people up to 30 years old will either pay no income tax or enjoy a much lower rate.
• Families with four children will each benefit from a €20,000 tax-free threshold.
• Residents and professionals in villages with up to 1,500 inhabitants will see a 50% cut in ENFIA (property tax) and living standard presumptions.
• VAT on Greece’s remote islands will be reduced by 30%.
• More broadly, all taxpayers will benefit from a 30% reduction in imputed income criteria and income tax cuts of 2 to 5 percentage points, with special emphasis on the middle class.

Who Gains and How

Starting January 1, 2026, taxation will place more weight on family circumstances and needs rather than strictly on individual income.

• Families with children:
  • Wage earners, pensioners, and farmers with four children used to benefit from tax reductions of up to €1,580. That rises to €4,800 for those declaring up to €30,000 annually. This will also apply to freelancers with four or more children.
  • For three children, the tax rate on income up to €20,000 will fall from 22% to 9%, meaning €1,300 in extra annual savings per parent.
  • For one child, the annual benefit rises from €123 to €600. However, above €30,000, the same higher tax rate applies to everyone regardless of children.
• Young people:
  • Up to 25 years old: No income tax on annual earnings up to €20,000, saving up to €2,100 per year.
  • Ages 25–30: A reduced 9% tax rate, saving around €1,300 per year.
• Middle class:
  • For those earning €25,000 and above, relief starts at €300 and reaches €4,800 annually compared to today.

Real-Life Examples

• A 22-year-old starting work in 2026 with a minimum monthly wage of €900, or earning €20,000 annually as a freelancer, will pay no income tax.
• A family with four children, with both parents earning €20,000 annually, will also pay no tax.
• A parent with one child and an annual salary of €17,500 will now save €300 in taxes, compared to just €123 previously.
• A two-child family with combined earnings of €34,000 will see €600 in tax savings, or €50 more per month in take-home pay.
• A freelancer earning €72,000 will see their tax bill cut by €4,600 compared to today.
• Pensioners without children will benefit too—someone receiving €1,600 per month will save €185 annually in addition to annual pension increases and the phasing-out of the “personal difference.” However, pensions below €800 will see no tax benefit.

The Ministry of Finance is expected to provide detailed clarifications on the measures on Monday.