News

Greek Prime Minister Kyriakos Mitsotakis announces tax cuts on rental income: what will change for property owners

At the Thessaloniki International Fair, Greek Prime Minister Kyriakos Mitsotakis presented new measures aimed at supporting landlords and increasing transparency in the real estate sector.

A new tax rate

The key change is the introduction of an intermediate income tax rate for rental earnings. Previously, the system looked as follows:

  • up to €12,000 per year — 15% rate,
  • from €12,001 and above — immediately 35%.

Now, for the income bracket between €12,000 and €24,000, a new 25% rate will apply.

This step eliminates the sharp tax jump that had caused justified complaints from small apartment and house owners.

Who will be affected?

According to government estimates, the adjustment of tax rates will improve the situation for around 150,000 landlords, who until now had faced excessive tax pressure. Property owners will now be able to declare their real income more favorably, while tenants can expect more transparent rental relations.

Impact on the market

The Prime Minister Mitsotakis emphasized that the new system not only restores tax fairness but also creates incentives for legalizing rental income. The more property owners officially declare their profits, the higher the likelihood that the state will continue pursuing further tax cuts in the real estate sector.

The adopted measures represent an important step towards balancing the interests of the state and homeowners. On the one hand, they ease the burden on mid-level landlords, while on the other, they strengthen tax discipline. Experts believe such reforms may positively affect the rental market as a whole, making it more transparent and predictable.