With the new tax reductions effective from January 1, 2026, as announced at the Thessaloniki International Fair (TIF), the government has implemented a total of 83 reductions in taxes and contributions since the beginning of its term in 2019.
Among the new measures, according to updates from the Ministry of National Economy and Finance, are:
- Reduction and restructuring of the income tax scale for employees, pensioners, farmers, and self-employed professionals, with emphasis on families with children and the middle class.
- Introduction of an intermediate 25% (from 35%) rate for income tax on rental income.
- Gradual abolition of ENFIA in settlements with up to 1,500 residents (50% reduction in 2026 and full abolition in 2027).
- Adjustment and rationalization of the property tax system.
- 30% VAT reduction on the islands of the North Aegean Region, in the Evros Prefecture, and on islands in the Dodecanese Prefecture with a population up to 20,000.
- Income tax exemption for foundations and bequests.
- Establishment of a tax-free library allowance for university faculty members and researchers.
- Abolition of the subscription TV fee.
Below is the full list of all tax reductions in recent years:
| Tax and Contribution Reductions | Year of First Implementation |
|---|---|
| 1 | Restructuring of the income tax scale for employees, pensioners, farmers, and self-employed professionals, with emphasis on families with children, youth, and the middle class |
| 2 | Introduction of an intermediate rate on property income tax, 25% from 35% |
| 3 | Gradual abolition of ENFIA for primary residences in settlements with up to 1,500 residents, with 50% reduction in 2026 and full abolition in 2027 |
| 4 | Adjustment and rationalization of the property tax system |
| 5 | 30% VAT reduction on the islands of the North Aegean Region, Evros Prefecture, and islands of the Dodecanese Prefecture with population up to 20,000 |
| 6 | Establishment of a tax-free library allowance for university faculty members and researchers |
| 7 | Income tax exemption for foundations and bequests |
| 8 | Abolition of the subscription TV fee |
| 9 | For pensioners who work, the calculation of the Pensioners’ Solidarity Contribution will exclude pension increments due to their employment |
| 10 | Reduction of social security contributions for overtime, night work, and work on holidays or Sundays for full-time employees |
| 11 | Reduction of tax rate on interest from listed corporate bonds from 15% to 5% |
| 12 | Additional 1 percentage point reduction of social security contributions |
| 13 | Abolition of the business tax for self-employed professionals |
| 14 | 20% ENFIA reduction for properties insured against natural disasters with taxable value up to €500,000 |
| 15 | Separate taxation of emergency duty payments for NHS doctors |
| 16 | Stamp duty reductions on a series of transactions (corporate loan interest, building permits, leases, weddings, insurance policies, etc.) |
| 17 | Incentives for innovation, mergers, and acquisitions |
| 18 | Abolition of 5% fixed-line phone fee for fiber optic connections (≥100 mbps) |
| 19 | Exemption from 15% insurance premium tax on health policies for children up to 18 |
| 20 | Tax exemption on voluntary benefits by companies for new parents |
| 21 | Income tax exemption for vacant properties or short-term rental properties that are converted to long-term rental |
| 22 | Adjustment of the Pensioners’ Solidarity Contribution, increasing each bracket annually according to pension growth |
| 23 | €1,000 increase in tax-free allowance for families with children |
| 24 | Abolition of 30% pension reduction for working pensioners |
| 25 | 10% ENFIA reduction for properties insured against natural disasters |
| 26 | 50% reduction of business tax for self-employed professionals |
| 27 | Larger tax reduction (40%-100%) for building upgrade expenses paid electronically, including goods |
| 28 | Exemption from special ship tax for vessels up to 7 meters |
| 29 | Abolition of Special Solidarity Contribution in public sector and for pensioners |
| 30 | Abolition of 1% contribution to the Public Servants’ Provident Fund |
| Tax and Contribution Reductions | Year of First Implementation |
|---|---|
| 31 | Permanent and full exemption of former EKAS beneficiaries from participating in pharmaceutical expenses |
| 32 | VAT reduction on agricultural machinery from 24% to 13% |
| 33 | Reduction of capital concentration tax rate from 0.5% to 0.2% |
| 34 | 50% reduction of stock exchange transaction tax |
| 35 | Abolition of tax on interest from government bonds |
| 36 | Permanent exemption from business tax for full-time farmers under the normal regime and coastal fishermen |
| 37 | Additional 13% ENFIA reduction on properties (cumulative reduction reaches 34%) |
| 38 | Corporate income tax reduction from 24% to 22% |
| 39 | VAT reduction on fertilizers from 13% to 6% |
| 40 | Refund of excise duty on diesel fuel to farmers (permanent from 2025 under new system) |
| 41 | Mobile subscription fee reduced to 10% (from 12-20%) and abolished for under-29s |
| 42 | Additional 0.5% reduction of private sector social security contributions |
| 43 | Super-deduction for green economy expenses |
| 44 | Tax incentives for business development through partnerships and corporate transformations, including 30% income tax reduction for business restructuring |
| 45 | Exemption from tax on flight and diving allowances for armed forces and security personnel, as well as special compensation for medical and nursing staff and ambulance crews for air transfers |
| 46 | 30% deduction from taxable income for electronic payments to specified professionals up to €5,000/year (home maintenance, plumbing, electrician, carpenter, concrete work, etc.), with double counting for medical, dental, and veterinary services |
| 47 | Self-employed and small businesses increasing average full-time employees exempted from business tax for the year of increase |
| 48 | 50% income tax reduction for full-time farmers selling through cooperatives or contract farming |
| 49 | Tax exemption on stock options for employees, favorable capital gains taxation (15%) if held 24 months; for startup shares, 5% if held 36 months |
| 50 | 3 percentage point reduction in private sector employee social security contributions |
| 51 | Abolition of Special Solidarity Contribution in private sector |
| 52 | Reduction of income tax prepayment from 100% to 55% (individuals) and 80% (corporations) |
| 53 | Increase of R&D super-deduction from 30% to 100% |
| 54 | Abolition of gift/inheritance tax for first-degree relatives up to €800,000 |
| 55 | Reduction of capital concentration tax rate from 1% to 0.5% |
| 56 | VAT reduction on animal feed from 13% to 6% |
| 57 | VAT reduction on gyms and dance schools from 24% to 13% |
| 58 | VAT reduction on zoos from 24% to 13% |
| 59 | 50% tax exemption for investments by “angel investors” in Greek startups via Elevate Greece |
| 60 | Permanent 30% VAT reduction on five Aegean islands (Lesvos, Chios, Samos, Kos, Leros) |
| 61 | Restructuring of personal income tax with 9% introductory rate and increased tax-free allowance per child |
| 62 | 0.9% reduction in social security contributions for full-time employees |
| 63 | Corporate income tax reduction from 28% to 24% |
| 64 | Dividend tax reduction from 10% to 5% |
| 65 | Abolition of ENFIA on small and remote islands |
| 66 | VAT reduction on urban, suburban, land, and rail transport from 24% to 13% |
| 67 | VAT reduction on maritime transport from 24% to 13% |
| 68 | VAT reduction on air transport from 24% to 13% |
| 69 | VAT reduction on taxis from 24% to 13% |
| 70 | VAT reduction on cinemas from 24% to 13%, then to 6% |
| 71 | VAT reduction on public health goods (hygiene items, dialysis filters, defibrillators) from 24% to 6% |
| 72 | VAT reduction on artworks from 24% to 13%, then to 6% |
| 73 | VAT reduction on coffee for take-away & delivery from 24% to 13% |
| 74 | VAT reduction on non-alcoholic drinks for take-away & delivery from 24% to 13% |
| 75 | VAT reduction on tourism packages from high/low ratio 80/20 to 95/5 |
| 76 | VAT reduction on baby items (diapers, strollers, sterilizers, car seats, helmets) from 24% to 13% |
| 77 | Suspension of VAT payment on new buildings until 2026 |
| 78 | Suspension of real estate capital gains tax until 2026 |
| 79 | Tax incentive framework for attracting non-dom residents and family offices; alternative 7% tax for foreign pension income with exemption from solidarity contribution |
| 80 | 40% tax reduction for building upgrade expenses paid electronically (originally services only) |
| 81 | ENFIA average reduction of 22% |
| 82 | Exemption of cars of large families from luxury tax |
| 83 | Exemption from special solidarity contribution for all disabled persons with 80% or higher disability |
Of the 83 tax and contribution reductions, 25 concern indirect taxation. Among them are the reduction of VAT on urban, suburban, and rail transport (from 24% to 13%), reduction of VAT on baby products (from 24% to 13%), and suspension of VAT payments on new buildings.
Indirect Tax Reductions 2019-2026
| Indirect Tax Reductions 2019-2026 | Year of First Implementation |
|---|---|
| 1 | VAT reduction on urban, suburban, and rail transport from 24% to 13% |
| 2 | VAT reduction on maritime transport from 24% to 13% |
| 3 | VAT reduction on air transport from 24% to 13% |
| 4 | VAT reduction on taxis from 24% to 13% |
| 5 | VAT reduction on cinemas from 24% to 13%, then to 6% |
| 6 | VAT reduction on public health goods (hygiene items, dialysis filters, defibrillators) from 24% to 6% |
| 7 | VAT reduction on artworks from 24% to 13%, then to 6% |
| 8 | VAT reduction on coffee for take-away & delivery from 24% to 13% |
| 9 | VAT reduction on non-alcoholic drinks for take-away & delivery from 24% to 13% |
| 10 | VAT reduction on tourism packages from 80/20 high/low ratio to 95/5 |
| 11 | VAT reduction on baby items (diapers, strollers, sterilizers, baby seats, helmets) from 24% to 13% |
| 12 | Suspension of VAT on new buildings until 2025 |
| 13 | VAT reduction on animal feed from 13% to 6% |
| 14 | VAT reduction on gyms and dance schools from 24% to 13% |
| 15 | VAT reduction on zoos from 24% to 13% |
| 16 | Permanent 30% VAT reduction on five Aegean islands (Lesvos, Chios, Samos, Kos, Leros) |
| 17 | VAT reduction on fertilizers from 13% to 6% |
| 18 | Refund of excise tax on diesel fuel for farmers (permanent from 2025 with new system) |
| 19 | Reduction to 10% (from 12-20%) and abolition for under-29s of mobile subscription fee |
| 20 | VAT reduction on agricultural machinery from 24% to 13% |
| 21 | Stamp duty reductions on various transactions (corporate loans, building permits, leases, weddings, insurance) |
| 22 | Abolition of fixed-line phone fee (5%) for fiber optic ≥100 Mbps |
| 23 | Exemption from 15% health insurance premium tax for children under 18 |
| 24 | Abolition of subscription TV fee |
| 25 | 30% VAT reduction on islands of North Aegean, Evros, and small Dodecanese islands |
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