A significant reduction in taxes for the incomes of 4 million taxpayers is foreseen by the changes to the tax system, which Prime Minister Kyriakos Mitsotakis is set to announce at the 89th Thessaloniki International Fair.
The “package” of new measures, which are expected to be legislated by the government no later than November, will mainly include interventions in the income tax scales of employees, pensioners, farmers, self-employed people and owners of rental properties.
According to sources, the possibility of retroactive effect of the upcoming favorable tax regulations for the 2025 incomes is also being considered.
Whether the changes will come into effect for 2025 incomes or for 2026 incomes will depend on the timing of the next parliamentary elections:
- if elections are to be held in 2025 or 2026, the most immediate implementation of the measures will be preferred, while
- if the government ultimately decides to stick to the four-year term, the changes will apply to 2026 incomes, so that benefits will be felt in the 2027 election year.
In any case, the total fiscal cost of the regulations that will be announced and legislated is estimated to exceed 2 billion euros in the two-year period 2026-2027.
