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> Greece

TIF 2025: Lower taxes per child, reductions in direct taxes for incomes up to €60,000

Additional relief bonuses from the first child – Proposals also for selective cuts in indirect taxes

Newsroom August 24 07:46

The end of the summer break for the Prime Minister and the government team marks a return to the Maximos Mansion and intensifies preparations ahead of the Thessaloniki International Fair (TIF). This appearance is of almost existential importance for Kyriakos Mitsotakis, whose main goal at the Vellidion Conference Center is to signal a return to the “factory settings” of the government—that is, the profile of the first four years that secured it a second term.
“As we head toward the elections in 2027, I will press the accelerator, not the brakes, on reforms,” says Mitsotakis, who now aims to help New Democracy outpace wear and tear, retake the initiative in politics, and pursue a third term, sticking to its majority strategy.

Returning to the Maximos Mansion last Tuesday afternoon, before departing again briefly, Mitsotakis held his first talks with close aides on political priorities and the framework for his presence in Thessaloniki. His speech, according to government sources, will mark the unofficial start of a long pre-election period. While Mitsotakis repeatedly insists elections will be held in early 2027, some aides and MPs do not rule out the “window” of fall 2026. In any case, through his announcements and priorities, Mitsotakis seeks to reconnect ND with key social groups and move more aggressively in the economy—especially in tax reduction. He will emphasize that ND is the party of work, pointing to significant reductions in unemployment, and stress that “the pie is growing” for citizens, even amid ongoing inflationary pressures.

Support for families

The main target group for this year’s TIF presence is the middle class, especially salaried workers whose disposable income is eroded by both inflation and static direct tax rates. The PM’s announcements are expected to be finalized this week in at least two meetings with the financial team and also with the government’s communications staff, with an eye on Sunday’s press conference.

According to Proto Thema, substantial relief is expected for families with children, given the worsening demographic problem facing Greece. The more children a family has (single-parent or not), the greater the tax reduction—starting from the first child. In fact, there are scenarios under which large families (four children) would pay no tax at all. As officials explain, while children were once considered an “expense criterion,” the government now wants to shift to viewing them as grounds for tax relief.

As already reported, central to the announcements will be major interventions in the tax scale, with the introduction of more brackets and a reduction of existing rates. A government source described this as “the largest tax cut in history for the middle class.” Finance Minister Kyriakos Pierrakakis and Deputy Minister Thanos Petralias have been preparing various alternative scenarios for two months, all aligned with this family-focused tax relief strategy, to be approved by Mitsotakis in the coming days.

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Also in the PM’s targeting are pensioners, with the abolition of the “personal difference” confirmed, along with housing subsidies. Attention is also turning to young people, where ND’s support has been low in recent polls. Although the focus is on direct taxes, proposals are also on the table for selective interventions in indirect taxes.

A hardline message

Mitsotakis understands that this autumn will be politically difficult and is determined not to give in to pressure. Thus, he will take a hard line in Thessaloniki, clarifying that he is speaking directly to citizens, acknowledging government mistakes, and highlighting efforts to correct them—such as the OPKEPE case. In the coming days, announcements are expected on major fraud cases uncovered by inspectors, involving funds wrongly pocketed. Against this backdrop, the PM will double down on the strategy of single-party majority and make it clear he is present and aiming for a third term—countering scenarios of internal shifts in ND or reliance on coalition partners post-election.

The central slogan for this year’s TIF has not yet been finalized. Mitsotakis is expected to arrive in Thessaloniki on September 5. At the Thessaloniki Concert Hall, there will be a special event presenting the regional development plan for Northern Greece by the relevant ministers, with Mitsotakis also addressing the gathering. Before that, he will hold traditional meetings with business representatives at the government building and meet ND MPs from Thessaloniki. The day before, Deputy PM Kostis Hatzidakis and Interior Minister Theodoros Livanios will meet with mayors of Central Macedonia. Meanwhile, ND’s tour program across Northern Greece is being finalized this week, delayed by the sudden passing of Apostolos Vesyropoulos, secretary of ND’s parliamentary group.

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