Athens has lowered most income tax rates by two points and rolled out extra breaks tied to children and for younger workers, including zero income tax for under-25s earning up to €20,000.
Greece rang in 2026 with a new round of tax cuts — measures the prime minister first announced three months ago at the Thessaloniki International Fair.
The move comes as the country looks to shore up household incomes after years of inflation and steep price increases. Greece also now holds the rotating presidency of the Eurogroup, the forum that brings together the finance ministers of the eurozone to coordinate economic policy, following the election of Kyriakos Pierrakakis as its head.
In practical terms, most basic income-tax rates have been lowered by two percentage points in recent days, with the lowest bracket left unchanged at 9%.
Reduced taxation to combat demographic problems
Tax rates will drop depending on how many children a household has. For example, in the €10,000–€20,000 income bracket, the current 22% rate will be cut to 18% for taxpayers with one child. It will fall to 16% for those with two children, to 9% for families with three children and to zero for families with four.
The Greek finance ministry estimates that a worker earning €20,000 a year would save €600 with two children, €1,300 with three, and €1,680 with four.
For someone earning €30,000 a year, the projected annual benefit is €400 with no children, rising to €800 if they have one child, €1,200 with two, €2,100 with three, and €4,100 with four.
New income-based tax rates
Under the new rules, workers aged up to 25 earning up to €20,000 a year will pay no income tax. For those aged 25 to 30, the tax rate will drop to an entry-level 9%, down from 22%.
In practice, the finance ministry says a 24-year-old earning €15,000 a year would save €1,283, rising to €2,480 on an income of €20,000. For a 28-year-old on the same salary, the estimated annual benefit would be about €1,300.
For an income from €40,000 to €60,000 the intermediate tax rate is set at 39% and down from 44%, the active rate until the end of 2025.
Property and housing
In 2026, ENFIA — Greece’s annual property tax on real estate — will be cut in half for those with their main residences in settlements with fewer than 1,500 residents, before being scrapped entirely in 2027.
The prime minister has described the measure as an incentive for families to stay in, or even return to, their home villages.
From 1 January, around 161,587 property owners who report annual rental income above €12,000 are set to receive a tax cut of up to €1,300 depending on how much rent they earn.
The reduction stems from a new intermediate tax band of 25%, replacing the 35% rate that applied last year to rental income between €12,000 and €24,000.
Under the revised scale, rental income up to €12,000 will still be taxed at 15%. Income from €12,001 to €24,000 will be taxed at 25%, rising to 35% for €24,001–€35,000.
Any amount at and above €35,001 will be taxed at 45%.
Provision for short-term leases
Landlords who rent out previously vacant homes — or switch properties from short-term to long-term rentals — by 31 December 2026 will receive a full income-tax exemption on that rental income for three years.
The exemption applies to homes that have been empty for at least three years, as well as properties that were previously used for short-term renting, provided the dwelling is up to 120 square metres.
For tenants with more than two children, the size cap increases by 20 square metres for each additional child. To qualify, the lease must run for at least three years.