In next week’s government meetings, the final details of the relief and support package to be announced by Prime Minister Kyriakos Mitsotakis at the Thessaloniki International Fair will be finalized.

The announcements will include tax cuts focusing on the middle class and families with children, benefits for uniformed personnel and pensioners, as well as interventions to tackle the housing issue, aiming to bring thousands of currently closed properties back onto the rental market.

The government’s main priority, as highlighted by statements from the prime minister and senior officials throughout last week, is to make use of the economy’s overperformance and revenues from the fight against tax evasion to reduce taxes for middle incomes, while also providing relief for lower ones, strengthen vulnerable groups, and address problems such as demographics and housing. This will involve measures like tax reductions for families with children and initiatives to boost housing supply.

The package will be in the region of €1.5 billion and is made possible by the additional revenues generated in the budget through strong economic growth and anti-tax evasion policies. This overperformance is confirmed by the latest budget data, which show that the primary surplus for January–July 2025 reached €7.939 billion—more than double the initial target of €3.599 billion—with tax revenues at €40.434 billion, €2.150 billion above target.

With this strong fiscal performance, the prime minister’s meetings with the economic team next week will finalize the TIF package, which, according to all scenarios on the table, will include:

• Changes to the tax scale focusing on incomes between €20,000 and €40,000, which will also bring relief to lower income brackets.
• An increase in the tax-free threshold for families with children, depending on the number of children.
• Adjustments to the imputed taxation system for the self-employed.
• Elimination of the remaining “personal difference” for 600,000 pensioners who retired before 2016, so they can benefit from annual pension increases.
• Income support for uniformed personnel, leading to higher pay.

Housing Measures

A separate section of the prime minister’s TIF announcements will focus on measures to address the housing crisis. The goal is to increase the supply of housing on the market, which is why a mix of incentives and disincentives for property owners, along with support measures for tenants, is expected to be announced. Specific announcements are also anticipated regarding the government’s social housing program.

As part of the housing package, the suspension of VAT on newly built properties will be extended for another year, until 2026.