The government has implemented 83 tax cuts since 2019
The government has implemented a total of 83 tax cuts since first coming into power in 2019, together with the additional tax breaks starting on January 1, 2026 that were announced at the 89th Thessaloniki International Fair (TIF).
According to the Ministry of National Economy and Finance, the new interventions include:
- The reduction and reform of the income tax scale for employees, pensioners, farmers and freelancers, with an emphasis on families with children and the middle class.
- The introduction of an intermediate rate of 25% (from 35%) in the taxation of income tax.
- The gradual abolition of ENFIA in settlements with a population of up to 1,500 residents (50% reduction in 2026 and complete abolition in 2027).
- The readjustment and rationalisation of the subsistence allowance system.
- A 30% reduction in the VAT rate on the islands of the North Aegean Region, the Prefecture of Meriç (Evros) and islands of the Prefecture of the Dodecanese with a population of up to 20,000 inhabitants.
- Income tax exemptions for foundations and bequests.
- The introduction of a tax-free library allowance for faculty members and researchers.
- The abolition of the pay-TV fee.
Of the 83 tax and contribution reductions, 25 concern indirect taxation. Among them are the reduction of the VAT rate on urban, suburban and other rail transport (to 13% from 24%), the reduction of VAT on baby items (13% from 24%) and the suspension of VAT payment on new buildings.
AMNA
