“Gradual, yet fiscally sustainable tax reductions remain our central choice,” emphasized Prime Minister Kyriakos Mitsotakis in his weekly review published on Facebook.
According to Mr. Mitsotakis, tax reductions are made possible due to increased state revenues and the reduction of debt, as well as the decrease in tax evasion.
“The data regarding the reduction of this socially unjust practice, with which we are in a constant battle, show that we have achieved significant progress,” he stated, noting that this has also been made possible thanks to the new operational model of the Independent Authority for Public Revenue (AADE), which utilizes modern digital tools such as myData and the connection of cash registers to POS systems. “This allows us to continue with the policy of tax reduction until the end of our current government term in 2027,” he added.
The 12 Significant Tax Cuts
He also referred to the new tax bill, which includes 12 significant tax cuts for households and businesses in 2025.
Among other measures, the bill includes the abolition of the business tax for all individuals (freelancers), including workers with “block receipts,” with a benefit of €400-500. Specifically, for individuals—self-employed and sole proprietorships—operating in areas with populations of up to 1,500 residents, the deemed income is reduced by 50% at minimum. Additionally, a three-year exemption from income tax will be provided to property owners who rent out previously vacant properties on long-term leases, as well as discounts on the property tax (ENFIA) for insured properties.
Kyriakos Mitsotakis mentioned that the request for separate taxation with a rate of 22% on the on-call earnings of the National Health System (ESY) has been met. Further incentives for business mergers are granted, and clear deadlines for tax returns are set, with discounts for timely filers and penalties for public officials in case of negligence.
Detailed Weekly Review of Kyriakos Mitsotakis
Good morning and happy new month to everyone! This is the first review of November, and I will start immediately, without delays!
Gradual, yet fiscally sustainable tax reductions remain our central choice. These are made possible due to increased state revenues, achieved through both economic growth—reflected in the increase of GDP and reduction of debt, two areas where our country is currently leading in Europe—and the reduction of tax evasion. Data regarding the reduction of this socially unjust practice, with which we are in a constant battle, show that we have achieved significant progress. This has been made possible thanks to the new operational model of the AADE, which utilizes modern digital tools such as myData and the connection of cash registers to POS systems. This enables us to continue with the tax reduction policy until the end of our current government term in 2027. This policy has also contributed to the continuous decrease in unemployment. According to the latest data from ELSTAT, unemployment fell further to 9.3% in September from 17.5% in 2019, marking a 15-year low (the lowest rate since May 2009). I am particularly pleased that due to our policies to support families, both women’s unemployment, which dropped from 21.6% in September 2019 to 11.4% today, and youth unemployment under 25, which fell from 39.3% in September 2019 to 16.3% today, are significantly decreasing. Greece is working!
The new tax bill presented at the recent Cabinet meeting, which is now open for public consultation, includes 12 significant tax reductions for households and businesses by 2025. I had announced these in September at the Thessaloniki International Fair, and we are implementing them. I will mention a few: the abolition of the business tax for all individuals (freelancers), including workers with “block receipts,” yielding a benefit of €400-500. Specifically for individuals—self-employed and sole proprietorships—operating in areas with populations of up to 1,500 residents, the deemed income is reduced by at least 50%. Additionally, a three-year income tax exemption will be provided for property owners who rent out previously vacant properties on long-term leases, as well as a discount on property tax for insured properties. The request from hospital workers for separate taxation with a 22% rate on the on-call earnings of the ESY has been met. Further incentives for business mergers are provided, and clear deadlines for tax returns are set, with discounts for timely filers and penalties for public officials in case of negligence.
The good performance of the economy and the increase in public revenues from the reduction of tax evasion is also expanding the scope of our social policy. Because that is where we are directing and will continue to direct the dividends of growth and surpluses. For example, the School Meal Program for Primary Education students for the school years 2024-2025 and 2025-2026 has a total budget of €345 million. The competition was announced earlier than ever, while the number of meals per day has increased (from 217,000 to 231,000), as has the number of municipalities implementing the program (from 133 to 153), and the number of participating school units (from 1,658 to 1,882).
Another socially impactful action, which concerns individuals with disabilities, is through the Early Childhood Intervention Program, which will provide a monthly voucher of €800 (per child) to 2,500 children and their families. This program, utilizing €35 million from the Recovery and Resilience Fund, establishes for the first time in Greece the framework for providing early intervention services to empower families with children with disabilities or developmental disorders or with a high likelihood of developing such disorders, from birth to age 6. I would like to mention that our country ranks first in the EU in drawing resources from the Recovery Fund as a percentage of GDP and fifth in disbursements. Indeed, by the end of November, we are preparing to submit the fifth request for an additional €3.6 billion from the Fund. Regarding the National Strategic Reference Framework (NSRF), we are in fourth place in terms of absorption based on payments made. The times when Greece consistently ranked last in the absorption of EU funds are now a thing of the past, benefiting both society and the real economy, as well as reducing regional disparities.
I will continue with good news about a flagship project that will change the face of the Athens waterfront. Funding for the transformation of Faliro Bay into a large coastal park of 541 acres has been signed by the responsible Commissioner, creating a green and “living” space that will enhance all neighboring areas. The budget for this mega-project is €370 million, and the EU has already approved the first €93 million from the Cohesion Fund for its implementation. The redevelopment of the waterfront was on the brink of exclusion from the EU. The efforts of the new Regional Governor Nikos Hardalias, whom I congratulate, significantly contributed to the “rescue” of this project. The park will be open to the public for free, fully accessible to individuals with disabilities, will operate using Renewable Energy Sources, and will be planted with nearly 3,000 trees. The redevelopment, with a completion horizon set for 2028 and operation in 2029, will provide the Athenian Riviera with a modern and large public green space. The project includes flood protection, thematic playgrounds, event spaces, and a sports center, while the facilities from the 2004 Olympic Games will be reused for educational and cultural activities. As Commissioner Ferreira noted, the park will serve as a model for how urban investments can be designed sustainably, aesthetically, and inclusively. I add, in turn, that this project will act as a catalyst for the development of both the area and all of Attica.
A positive update for residents of the metropolitan area, especially those who work or socialize late on weekends, is the new hours for the Athens metro on lines 2 and 3, which will be extended. From now on, every Friday and Saturday night, the services will operate until 2 AM. What does this mean? That the last train will depart from Syntagma to Piraeus, Anthoupoli, Elliniko, and Chalandri every Friday and Saturday at 2 AM. What else does it mean? Safer and cheaper transportation for everyone during the night. Our next goal is to connect the metro lines with specific bus lines during the night every Friday and Saturday to create a denser network of services for citizens. It is our strategic goal to enhance sustainable urban mobility in cities by improving the public transport provided, always in favor of the many.
And because Greece is not just Athens (we don’t just say it, but we prove it with the Development Plans for all regions of the country aimed at double convergence), we are directing European resources to areas outside Attica. Recently, the first 67 proposals amounting to €30.2 million have been approved, funded by the Recovery Fund, concerning the creation of a network of trails and hiking routes with the implementation agency being the Natural Environment and Climate Change Organization. These include projects for the creation or enhancement of trails in Evia, Soufli, Oinousses, Kalymnos, Tzoumerka, Asterousia in Crete, Kalymnos, Folegandros, Naxos, Donoussa, Iraklia, Ano Koufonisi, Schinoussa, Drama, and the Gerania Mountains. Furthermore, there will be a second round of evaluations for other proposals in the regions of Western Macedonia, Epirus, and the Peloponnese. The network of hiking trails will contribute to the maintenance and protection of our countryside, highlighting their natural and cultural heritage with significant contributions to local sustainable development, especially in areas “scarred” by natural disasters.
I will remain in the Region for another important project with social reciprocity. The contract
