Greece Unveils €1.6B Tax Cuts to Boost Middle-Income Earners, Families, and Youth
The government has announced significant tax cuts, aiming to boost middle-income earners, families, and young people. The changes, revealed at the Thessaloniki International Fair for 2026, will provide substantial relief, with tax reductions set to rise to €1.6 billion by 2027.
The new tax rates will see a 2% reduction for incomes up to €40,000, and a 5% cut for incomes between €40,000 and €60,000. Incomes over €60,000 will be taxed at a flat rate of 44%.
Families will benefit greatly, with zero tax for those earning up to €20,000 and having four or more children. Young people will also see relief, with zero tax for those under 25 earning up to €20,000, and a 9% rate for those under 30.
Thousands of pensioners are expected to see their monthly incomes grow, with the total tax relief package amounting to €1.76 billion. Of this, €1.2 billion is earmarked for the middle class, families, and young people.
The goal of these tax reductions is to ease the burden on middle-income earners, encourage businesses to raise wages, and entice young people to return from abroad. The changes are set to provide significant financial relief and stimulate economic growth.
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