10 Key Measures Announced by Kyriakos Mitsotakis at the Thessaloniki International Fair (ΔΕΘ): Tax Changes and ENFIA

Source tanea.gr

At the Thessaloniki International Fair, Greek Prime Minister Kyriakos Mitsotakis presented an ambitious reform package directly affecting millions of taxpayers. The primary focus is on tax reductions, easing the financial burden on families, and supporting rural communities. Below are the ten key measures that will define the country’s new tax policy.

1. Lower Tax Rates and Family Benefits

Starting in 2026, all taxpayers will benefit from a 2% reduction in tax rates, while families with children will receive additional allowances. For large families with four or more children, taxes will be completely eliminated on incomes up to €20,000.

2. Full Tax Exemption for Youth

Young people up to 25 years old with an income of up to €20,000 will be completely exempt from taxation. Those aged 26–30 will be taxed at a reduced rate of 9%, down from the current 22%.

3. Support for Pensioners

From 2026, the so-called “personal difference” in pension payments will be reduced by half, and by 2027, it will be fully abolished. This will lead to a significant increase in income for more than 670,000 pensioners.

4. Lower Taxes on Rental Income

The government introduces a new intermediate tax rate of 25% for rental income between €12,000 and €24,000 per year. Previously:

• Income up to €12,000 was taxed at 15%.
• From €12,001 onward, the rate jumped sharply to 35%.

The new rate reduces the burden for 150,000 landlords who were previously disadvantaged. Moreover, it aims to combat the “shadow rental market” by encouraging official declarations of rental contracts.

5. Reduction and Abolition of ENFIA for Villages

The ENFIA property tax will be significantly reduced for residents of small settlements:

• In 2026, the tax on primary residences will be cut by 50%.
• In 2027, it will be completely abolished.

This not only eases the tax burden but also supports the demographic and social revival of rural areas.

6. Tax Relief for Border Islands

VAT (ΦΠΑ) will be reduced by 30% for all border islands with fewer than 20,000 inhabitants. Previously, the benefit applied only to five islands, mainly those burdened with refugee hosting. Now, the measure extends to dozens of communities in:

• The North Aegean,
• The Dodecanese,
• Evros.

7. Reduction of “Deemed Expenses”

500,000 taxpayers will receive relief in calculating housing and car-related expenses. Additional benefits will be granted to the self-employed in small settlements.

8. Housing Projects on State-Owned Land

On former military camps in Athens, Thessaloniki, and Patras, 2,000 apartments will be built. A quarter will be allocated to military personnel, and the rest to citizens without homes.

9. Support for Defense and Automotive Investments

The tax deduction will be doubled for companies investing in defense industries and automobile manufacturing. This is expected to attract new projects and strengthen the country’s industrial base.

10. Boosting Small and Medium-Sized Enterprises (SMEs)

The government is launching a national export strategy, simplifying industrial licensing, and channeling billions of euros from state and EU funds into modernization, energy efficiency, and the development of a “green” fleet.

Mitsotakis’s speech at the Thessaloniki International Fair marked a new tax policy for Greece, featuring lower rates, the abolition of ENFIA in small settlements, and strong support for youth, which will be the key steps in stimulating the economy. These measures aim to raise citizens’ incomes, strengthen social justice, and give new momentum to regional development.