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Greece’s Major Tax Reform to Boost Incomes from 2026

Greece’s new tax reform will become official law next week following the publication of updated tax relief measures in the Government Gazette. The planned tax reductions are expected to raise household incomes starting January 1, 2026, with some benefits potentially taking effect even earlier.

Even before the law’s approval, the Ministry of Finance’s online calculator — taxcalc2025.minfin.gr — has attracted over 530,000 visitors, as individuals and families calculate their potential gains. The tool has proven especially popular among young adults, parents, employees, professionals, and property owners.

The law, titled “Tax Reform for Demographics and the Middle Class – Support Measures for Society and the Economy,” introduces permanent tax cuts and exemptions worth €1.5 billion in 2026, along with salary increases in the public sector. The total impact is projected to rise to €2.5 billion annually from 2027. Finance Minister Kyriakos Pierrakakis described it as the “largest tax relief in modern Greek history,” while other EU countries are considering austerity measures.

Who Benefits

All taxpayers will benefit, including those currently exempt from income tax, as planned wage increases take effect. The minimum wage will rise from €880 today to €950 by 2027. More than four million taxpayers will see immediate relief from reduced income tax rates between €10,000 and €40,000:

• €10,000–€20,000: 20% (from 22%)
• €20,000–€30,000: 26% (from 28%)
• €30,000–€40,000: 34% (from 36%)

A new 39% rate will apply to incomes between €40,000 and €60,000, while the top rate of 44% will remain for very high earners.

The reform aims to strengthen the middle class, boost household incomes, and support Greece’s economic growth.