Greece Plans Tax Cuts for Middle Class

The Greek government is preparing a new tax cut package aimed at supporting the middle class, which has borne the brunt of the economic crisis. Prime Minister Kyriakos Mitsotakis is set to officially present the plan in September during the 89th Thessaloniki International Fair (TIF), CE Report quotes Athens-Macedonian

This package will complement the 1.1 billion euros in recent measures aimed at assisting tenants, low-income pensioners, and boosting the Public Investment Programme. Final details will depend on economic growth rates and available fiscal space, with analysts pointing to the impact of the international trade war and tourism as key factors.

The tax cuts will focus on both taxes and social security contributions, set to be implemented in 2026 if Greece's economic growth continues. The goal is to increase middle-class disposable income and create a fairer tax environment to boost consumption and investment.

Key measures include:

Reforming the income tax scale to reduce the tax burden on those earning between 20,000 and 40,000 euros annually.

Tax relief for rental property owners.

Social housing policies, such as interest rate subsidies and rent support.

Reducing the presumed minimum income for asset maintenance by 30%.

Further reducing social security contributions by 0.5 percentage points in 2026.

As Mitsotakis stated, “If the economy continues to thrive, Greek citizens can expect better days ahead.”