Greece prepares biggest tax relief in history: 4 million people will benefit

From 2026 In Greece, the law on tax cuts for the amount 1.5 billion euroswhich will affect 4 million people. Minimum income tax rate will decrease from 22% to 20% – new progressive scale has already been approved by the government.

The largest tax reform in the history of modern Greece will come into force at the beginning of 2026. As stated by the Minister of National Economy and Finance Kyriakos Pierrakakisthe law on “tax reform for demographics and the middle class» has already been approved by parliament and will be published in the coming days Government newspaper.

The total amount of tax breaks will be 1.5 billion eurosfrom which, according to the minister, they will benefit more than 4 million citizens. In the future, starting in 2027, the effect of the reform will increase to 2.5 billion euros annually.

Who will win the most?

The reduction in the tax burden will affect all categories of taxpayersincluding those who previously did not pay taxes at all. This is due to the planned gradual increase in nominal incomeincluding minimum wage: from the current 880 euros it will increase to 950 euros in 2027.

Moreover, starting from January 1, 2026will be entered updated income tax scale:

• 20% instead of 22% – for income from 10,000 to 20,000 euros
• 26% instead of 28% – for incomes from 20,000 to 30,000 euros
• 34% instead of 36% – for incomes from 30,000 to 40,000 euros
• 39% – new intermediate level for incomes from 40,000 to 60,000 euros
• 44% – the rate is retained only for high-income groups

Thus, the reform is aimed at middle class support and stimulation consumption under conditions of inflationary pressure. This decision stands in stark contrast to the policies of other countries. European Unionwhere new austerity measures.

Minister Pierrakakis emphasized that this “the largest tax amnesty in the history of post-war Greece.” He added that this initiative will also contribute to demographic stability, offering real incentives for young families and working citizens.

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