Greece to issue early €250 support to low-pensioners; Budget expands aid for 2026

Prime Minister Kyriakos Mitsotakis said on Sunday that low-pensioners will receive a new permanent €250 support payment earlier than scheduled, with disbursements beginning Monday. He said the payment marks the first of several income increases, noting that from January taxpayers will benefit from lower taxes and the annual pension hike. These measures are included in the 2026 budget now before Parliament.

The government projects 2.4% growth next year, along with further declines in inflation, unemployment and public debt. Mitsotakis said the budget’s central aim is to “strengthen the income of millions of citizens.”

More than 5 million households will benefit from the 2026 measure

According to the Economy and Finance Ministry, more than 5 million households will benefit from the 2026 measures, which total €3.2 billion annually. The package includes €1.76 billion in new permanent tax cuts and income increases effective January 1, as well as €1.5 billion in measures already applied since 2025, such as the rent refund and €250 pensioner support now formally incorporated into the State Budget.

Middle-income earners will see a two-point reduction in income tax rates over €10,000, while families will receive substantial tax relief—up to €3,100 annually for large families, or €4,000 if self-employed. Young workers under 25 will pay no tax on incomes up to €20,000, and those aged 26–30 will automatically gain €1,300.

Housing incentives include a three-year full tax exemption for owners renting out vacant properties long-term, continued tax breaks for home upgrades, and a reduction of rental income tax from 35% to 25% for incomes between €12,000–24,000. ENFIA property tax will be cut by 50% in small settlements in 2026 and abolished in 2027, while VAT will fall by 30% on 19 Aegean islands and the 10% subscription TV fee will be lifted nationwide.