Prime Minister Mitsotakis announced yesterday comprehensive income tax cuts amounting to €1.6 billion. The reforms focus on families with children, young workers, homeowners and pensioners.

Major tax reform for Greece

The Updated Tax Brackets

The new tax system brings changes that should benefit plenty of taxpayers. Most income groups see tax rates drop by 2 percentage points, though the lowest bracket sticks at 9%.

Now, if your income sits between €10,000 and €20,000, you pay 20% instead of 22%. Families with children get a sweeter deal: 18% for one child, 16% for two, and down to 9% if you’ve got three or more kids.

This isn’t just for employees—it covers pensioners, professionals, and farmers too. The personal tax credit rises as the number of children grows, which chips away at taxable income and lowers the bill even more.

Honestly, these tweaks seem designed to lighten the tax load for a wide range of people.

Taxpayer with One Child

Having one child now means you catch a bit of a break. The tax rate for €10,000 to €20,000 income drops to 18%—that’s 2 points lower than for those without kids.

The tax-free allowance also grows, so more of your money avoids the taxman. That should bump up your monthly take-home pay.

Personal deductions improve as well, which can help with the real costs of raising a kid.

Taxpayer with Two Children

If you have two children, things get even better. The tax rate in that €10,000 to €20,000 range goes down to 16%.

The tax-free chunk of your income grows again, giving middle-income families a bigger sigh of relief.

With more kids, you get bigger reductions in contributions, so families keep more of what they earn.

Taxpayer with Three Children

Three kids? Now you’re in the steep discount zone. The tax rate for moderate incomes falls to 9%—that’s a big drop compared to smaller families.

The personal tax allowance jumps up, protecting more income from taxes. This setup is really meant to help larger families breathe a bit easier.

Extra perks might show up with social contributions and other bills, giving households with three kids a bit more room to maneuver.

Taxpayer with Four or More Children

Four or more children? That’s where the tax rates hit rock bottom—some brackets even go to zero.

The tax-free threshold peaks, so a hefty portion of your income is out of reach for taxes. It’s a nod to the bigger financial load that large families carry.

The system seems to push for more family support and maybe even a nudge toward population growth by offering serious relief to parents with lots of kids.

Summary Table of Tax Rates by Number of Children (Approximate for €10,000–€20,000 Income)

Source: Hania News

Key Details of the Economic Measures

The government, led by Prime Minister Kyriakos Mitsotakis, just rolled out a pretty wide-ranging set of financial measures. The goal? Support incomes and trim taxes across the country.

The average value clocks in at about €2,500 per person, though families with three or more kids can get even more. These changes target a huge swath of people—some four million taxpayers, especially the middle class and big families.

Tax Reductions and Adjustments

Tax rates are dropping for anyone making over €10,000. The tax-free threshold jumps up for families with four or more kids, going all the way to €27,000.

This should make a real dent in the tax burden for families and regular taxpayers. Take a family of five earning €1,500 a month—they’re looking at annual tax cuts of about €1,650.

Youth get some special treatment here. If you’re under 25, you won’t pay income tax on up to €20,000. For those 26 to 30, the rate inside certain brackets drops from 22% to 9%—that’s a big difference.

Income Support and Wage Increases

These measures aren’t just about taxes. There’s a whole batch of wage increases coming—up to 12 salary hikes, including a higher minimum wage and extra pay for night shifts.

The government also bumped up benefits like the minimum guaranteed income, hoping to reinforce the safety net for lower earners.

They’re putting a lot of effort into cutting unemployment, especially among younger folks. Incentives are in place to get young people working—or sticking with their jobs longer. That could help both economic growth and everyone’s personal finances, though we’ll have to see how it pans out. (More on Greece’s economic model here.)

Property Taxes and Business Relief

The property tax ENFIA is on the chopping block, especially in villages. By 2027, it’ll disappear entirely from rural areas.

This should make life easier for folks with second homes or family properties in the countryside. For business owners, the government plans to scrap the special business tax (τέλος επιτηδεύματος) and cut down on stamp duties. It’s all about making it easier—and hopefully more appealing—to invest and run a business here.

Pension Adjustments and Public Sector Benefits

Pensioners will see a 2% bump in their payments starting January 2025. It’s a modest increase, but it’s meant to help with stability for retirees.

Public sector workers aren’t left out either. They’re getting wage adjustments too.

The finance minister says the country can afford this thanks to strong budget surpluses and pretty solid public finances. Let’s hope that holds up.

Encouraging Investments and Growth

The plan isn’t just about immediate relief. The government wants to ramp up both private and public investments, especially in infrastructure and modernization.

They’re betting this will create more jobs and set the stage for longer-term growth. If it works, it could really change the economic landscape.

Want to dig into the details yourself? Check out the live presentation of the financial measures from the minister.

Greece Lowers VAT by 30% for Isolated Islands

The Greek government just announced a 30% cut in Value Added Tax (VAT) for islands with fewer than 20,000 residents. The standard VAT drops from 24% to 17%, and the lower rate goes from 13% to 9%—that’s a pretty noticeable difference for these places.

This VAT break directly affects several small and remote island communities. Here’s a quick look at which islands qualify:

Locals can expect lower prices on everyday essentials like food, medicines, books, and anything tied to tourism or dining. Local businesses might find it easier to compete, maybe even draw in more visitors—who knows, it could give these communities a real boost.

The government wants to give these far-off regions some financial breathing room. There’s a bigger picture here, too, as this move fits into broader tax reforms aiming to stir up more economic activity across Greece’s islands.

Measures Fall Short: Reactions from Cretan and National Organisations to Mitsotakis’ Announcements at Thessaloniki Fair

The government rolled out a new package of measures at the Thessaloniki International Fair, hoping to ease household budgets by lowering taxes and helping vulnerable groups. The plan features tax cuts for incomes between €10,000 and €40,000, with bigger breaks for families with kids.

Young workers under 25 earning up to €20,000 could see a zero tax rate. Villages with fewer than 1,500 people get their property tax (ENFIA) cut in half, and small Aegean islands under 20,000 folks get a 30% VAT reduction.

They’re talking about scrapping ENFIA entirely by 2027, hoping that’ll keep rural towns alive. Still, a lot of people in Crete and across Greece aren’t convinced.

Plenty of economic and professional groups say these measures don’t really tackle the big stuff—like the cost of living, shrinking populations, or the housing crunch. Sure, tax relief helps, but it doesn’t reach everyone who’s struggling, especially farmers, workers, or low-income families.

Trade unions and producer groups sound pretty frustrated. They argue the government’s plan skips over labor rights and doesn’t do much to fight inflation or spark real economic growth.

Some even feel the announcements sort of shrug off how tough things are for everyday folks. At the same time, there’s a bit of hope among small business owners and young professionals.

They like the idea of lighter tax loads, thinking maybe it’ll mean more money in their pockets or more jobs. The targeted tax cuts for rural spots and islands show someone’s paying attention to regional struggles.

Still, critics keep saying, “Hey, we need bigger, longer-term fixes if we want to see change.”

Here’s a quick snapshot of the main measures and how people see them:

This whole debate isn’t just about money. It’s about families, jobs for young people, and the state of public services.

The government keeps saying it’s focused on families, youth, and national resilience, but critics see this package as just a piece of the puzzle. If you want to dig deeper into these responses and what’s actually on the table, check out the discussion of the latest policy announcements.

Farmers and Livestock Breeders Express Fury Over Exclusion from Thessaloniki Announcements

The latest Thessaloniki International Fair really left farmers and livestock breeders feeling sidelined. The government rolled out a 1.7 billion euro aid package to fight rising prices, but not a single measure targeted agriculture.

That stung. People working the land and raising animals are now angry, feeling like the country just forgot them—even though they keep things running in rural Greece.

Farmers have started calling themselves forgotten and excluded. Not even a token bit of help was planned for their sector.

Other groups got big support plans, but the primary sector? Nothing. Now farmers and breeders are left guessing about their future, weighed down by debt and higher costs.

They keep asking for help, but nobody seems to listen. The problems just keep piling up.

Here’s what’s hurting these communities the most:

• Widespread crop damage
• Livestock herds shrinking from disease
• Compensation and subsidies arriving late
• Production costs up, product prices down
• Some are even thinking about giving up farming altogether

No one really offered a plan or vision for agriculture. That gap just adds more worry for farmers and breeders.

Leaders of agricultural groups noticed their sector was basically missing from the event’s main agenda. Only a couple of measures—like scrapping property tax on main homes in villages or cutting VAT on small islands—had any connection to rural life.

These tweaks seem pretty minor. They don’t solve the big, stubborn problems facing the industry.

The prime minister, in recent interviews, kind of dodged the agricultural questions. He mentioned an old scandal with the national payment authority, but didn’t lay out any new ideas—just said misused funds should be recovered.

Honestly, that left a lot of people disappointed. No real plan, just vague talk.

Frustration has boiled over into protests and louder demands for government action. In places like Crete and Eastern Macedonia-Thrace, farmers have taken to the streets, especially since they got left out of aid for animal disease outbreaks.

So, rural workers are stuck—facing money troubles and a sense that nobody’s got their back. The lack of clear support only turns up the heat and puts the future of farming on shaky ground.

People keep talking about this, and honestly, who can blame them? The sector’s waiting for some real action, not just words, from the government to relevant announcements.

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