Greece to abolish ENFIA in villages, introduce new tax cuts for families
The Greek government is preparing a major tax reform set to take effect in 2026, with a strong focus on supporting families. Prime Minister Kyriakos Mitsotakis is expected to announce the plan during the Thessaloniki International Fair, outlining changes in both income tax and the property tax (ENFIA).
Under the reform, ENFIA will be completely abolished in villages with fewer than 5,000 residents. The government aims to preserve rural populations and encourage people to move back from cities to the countryside. Officials have also hinted that ENFIA reductions could gradually extend to other regions.
Income Tax: A French-Style Model
The new system introduces tax relief based on family size, inspired by France’s model. Each adult in a household will be assigned two points, and each child one point. The total number of points will then reduce the family’s applicable tax rate.
For example, a family with two children (six points) would see their 22% tax bracket reduced to 16%, and their 28% bracket lowered to 22%—significantly easing the tax burden on households.
Who Benefits?
According to the Finance Ministry, 1,283,223 families in Greece have children, the majority of them salaried workers (719,000 families) and self-employed professionals (306,000 families). Average incomes and current tax burdens are as follows:
- Families with one child: €24,553 income – €3,257 tax
- Families with two children: €29,514 income – €4,071 tax
- Families with three children: €28,260 income – €3,529 tax
- Families with four children: €24,178 income – €2,689 tax
- Families with five children: €17,783 income – €1,688 tax
New Top Tax Brackets
The reform will also adjust rates for high earners.
Currently, all income above €40,000 is taxed at 44%, meaning middle-high earners will see some relief under the new system.
