Greece Unveils 17 Measures to Cut Taxes and Boost Incomes
The Greek government has unveiled a sweeping package of 17 economic reforms aimed at reducing taxes and raising wages across the country.
The Greek government has introduced a sweeping package of economic interventions designed to reduce taxes, raise wages, and bolster household incomes, according to reporting by Greek City Times. The measures follow years of fiscal pressure and arrive as Prime Minister Kyriakos Mitsotakis attempts to address persistent cost-of-living concerns ahead of upcoming electoral contests.
The announcements, unveiled at the Thessaloniki International Fair, span a wide array of fiscal adjustments intended to support businesses and citizens alike. According to The Straits Times and Internazionale, the governing center-right administration has structured the fiscal package to equal 1% of GDP. Government officials stated that strong economic growth, an expanding GDP rate outpacing the eurozone average, a higher-than-expected budget surplus, and more comprehensive tax collection have provided the necessary fiscal space to fund the measures without endangering the country's financial stability. Some of the tax breaks are slated to extend over a four-year period.
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Despite these positive macroeconomic indicators, the government faces a complex political and social backdrop. Public support for the administration has slipped amid a protracted cost-of-living crisis and corruption claims, with labor unions staging demonstrations demanding generous wage increases and lower prices for everyday goods and energy. Historical context underscores the country's long road to recovery; reports from Voice of America and Al Jazeera trace the severe austerity measures, structural adjustments, and international bailouts that defined the Greek debt crisis over the past decade and a half, including previous rescue packages, credit rating downgrades, and widespread public protests.
The newly announced package introduces targeted structural reliefs across multiple sectors. Self-employed workers and compliant professionals will see the abolition of most presumptive income calculations, while advance corporate tax payments will be reduced. Furthermore, To Vima notes that the housing market will benefit from an extension of tax incentives aimed at bringing vacant properties back onto the long-term rental market, alongside the continuation of renovation tax deductions and the suspension of VAT on new residential construction.
To Vima notes that the population threshold for eligibility will rise from 1,500 to 2,000 residents, while the threshold will be increased to 2,200 residents in Western Macedonia.
To illustrate the varying impact of these fiscal adjustments across different demographics and sectors, the following comparative overview details key measures:
| Category | Current System / Baseline | New Measure / Reform | Target Group / Impact |
|---|---|---|---|
| Minimum Wage | €920 | Increases to €1,000 by January 2028 (with seniority up to €1,300) | Private sector workers |
| Farmer Taxation | Taxable based on standard tiers | Tax-free income up to €20,000 for professional farmers | 47,091 farmers |
| Three-Child Families | Standard tax brackets apply | Tax-free threshold raised to €25,364; first €20,000 tax-free | 86,927 families |
| Non-EU Property Tax | 3% property transfer tax | Rises to 15% on residential purchases | Non-EU buyers |
| ENFIA Exemption | Exemptions in settlements up to 1,500 residents | Threshold raised to 2,000 residents (2,200 in Western Macedonia) | 62,000 additional property owners across 131 new settlements |
Additional measures include a Christmas bonus for public-sector employees starting in December 2027, alongside basic salary increases scheduled for April 2027 and January 2028. Pensioners will also see their permanent November payment rise and expand to all individuals aged over 65, while families will gain access to a state-matched investment account scheme for newborns. According to government officials cited by The Straits Times, the measures were designed to encompass almost all social groups and agricultural workers while safeguarding fiscal health.
As the government prepares to roll out these sweeping reforms through 2026, 2027, and subsequent years, attention remains focused on implementation and legislative progression. Observers will be watching how these measures interact with ongoing cost-of-living pressures and whether the fiscal package succeeds in shifting public opinion ahead of the upcoming electoral cycle.
