Mitsotakis described the measures as the boldest tax reform in Greece since the restoration of democracy.
The overall package amounts to €1.6 billion, benefiting more than 4 million taxpayers. It also includes financial support for small and medium-sized enterprises (SMEs) through EU funds, and €200 million in energy subsidies for industry.
The Prime Minister stressed that the core of his policy is improving household income, ensuring national security, and offering hope to young people.
“The cost of living, as everywhere, has risen sharply. Our top priority is supporting incomes to act as a shield against inflation,” he said, introducing both immediate and longer-term measures.
Major Tax Relief Measures
A key highlight of his speech was a two-point reduction in income tax rates and a full tax exemption for large families with annual incomes up to €20,000.
He also announced:
- Zero taxation for young workers under 25 with annual income up to €20,000.
- A reduced tax rate of 9% (instead of 22%) for those up to 30 years old.
Another significant reform was the gradual abolition of the “personal difference” in pensions—cut by half in 2026 and eliminated completely in 2027—directly affecting 671,000 retirees.
“These reforms form part of a coherent plan that emphasizes social justice and national responsibility. When there is political will, the state can stand up to anyone, no matter how powerful,” Mitsotakis declared.
Salary Adjustments, Regional Support, and Housing for Youth
The Prime Minister also announced wage increases for military personnel and diplomats, covering 151,422 members of the Armed Forces, Security Forces, and the Diplomatic Service.
He reiterated his commitment to support rural Greece, with:
- ENFIA property tax cut by 50% in 2026 and full exemption in 2027 for villages with up to 1,500 residents.
- 30% VAT reduction for remote islands with fewer than 20,000 residents.
On housing, Mitsotakis announced the construction of 2,000 apartments on unused public land, with 25% allocated to military personnel and 75% to citizens without a first home. Initial projects will begin in Moschato, Thessaloniki, and Patras.
Additional measures include:
- Reduced “living standard criteria” (tekmiria) for housing and vehicles, benefiting 500,000 taxpayers.
- Lower tax rates for small property owners, with 25% tax on rental income between €12,000–24,000, provided the real amounts are declared.
Four Strategic Reforms for 2030: Education, Health, Urban Planning, Energy
Mitsotakis also unveiled four long-term reforms with implementation by 2030, requiring broad political consensus:
- National Diploma: Restoring the role of high school and strengthening its link to both universities and the job market.
- Healthcare Reform: Completion of the upgrade of the National Health System with EU Recovery Fund resources, including modernized ERs, afternoon surgeries, and enhanced prevention.
- Urban Planning Overhaul: Transfer of urban planning responsibilities to the National Cadastre S.A. to curb bureaucracy and arbitrariness.
- National Energy Map: A long-term strategy to ensure energy autonomy and affordable prices.
The 10 Measures Announced
- Lower taxes for all: 2% cut in tax rates, additional reductions per child, and zero tax for large families up to €20,000 income.
- Zero tax for young workers: No tax for under-25s up to €20,000 income; 9% rate for 25–30-year-olds.
- End of “personal difference” in pensions: Half eliminated in 2026, full abolition in 2027, benefiting 671,000 pensioners.
- Salary increases for military and diplomats: New payroll system for 151,422 personnel.
- ENFIA exemption in villages: 50% cut in 2026, full exemption in 2027 for villages under 1,500 residents.
- Lower VAT in remote islands: 30% reduction for islands with fewer than 20,000 residents.
- Reduced living-standard criteria (tekmiria): Cuts for housing and vehicles, benefiting 500,000 taxpayers.
- Housing relief for small landlords: 25% tax rate on rental income between €12,000–24,000, with accurate declarations.
- 2,000 new apartments: Built on former military land, 25% for Armed Forces personnel, 75% for citizens without a first home.
- Support for freelancers in small settlements: Expanded eligibility for tax relief in communities up to 1,500 residents.