At the 89th Thessaloniki International Fair (TIF), Prime Minister Kyriakos Mitsotakis announced “the boldest income tax reform in the history of modern Greece,” a €1.6 billion intervention aimed at providing significant relief for families, young people entering the workforce, and property owners.

Mitsotakis referred to this initiative as “the time of the middle class, the moment for families, and the new generation,” highlighting that around 4 million taxpayers will benefit. For instance, tax rates will decrease by 2% for each child, reflecting the government’s quiet but substantial reforms over the past years.

The Prime Minister emphasized that these are permanent measures. He also announced lower tax rates on rental income between €12,000 and €25,000 and reiterated that “we are reducing tax rates by 2 percentage points for everyone.”

Detailed examples of the new rates:

For income €10,000–20,000:

• From 22% to 18% for one child, 16% for two children, 9% for three children, and zero for families with four or more children.
• Annual benefit at €20,000 income: 2 children = €600; 3 children = €1,300; 4 children = €1,680.

For income €30,000:

• Annual benefit: no children = €400; 1 child = €800; 2 children = €1,200; 3 children = €2,100; 4 children = €4,100.

For income €40,000–60,000:

• An intermediate rate of 39% will be introduced, down from the current 44%.