Abolition of the ENFIA tax (property tax) in small municipalities, overview of the new tax measures and which receipts grant tax rebates of up to €2,200.
General Information on ENFIA Changes
The new policy gives ENFIA exemptions to 12,720 small settlements across Greece. There are two main conditions for who actually gets this benefit.
First, all settlements in the Attica region are out—unless they’re in the Islands unit. That keeps the focus on rural or tiny communities, not the big city suburbs.
Second, the property’s taxable value can’t be over €400,000. If it is, you’re out of luck, even if your village is tiny.
This rule tries to stop wealthy folks with pricey homes from getting a free ride. In places like Platis Gialos (Mykonos) or Oia (Santorini), the tiny local populations don’t matter—property prices are so high that almost every house is valued above €400,000.
Homes there often start at €4,000 to €7,000 per square metre. So, even a modest house gets excluded, and those Cycladic villas? They’ll keep paying full ENFIA.
Instead, the policy targets owners in thousands of countryside villages and small towns. Starting in 2026, these homeowners get a 50% ENFIA cut.
By 2027, if certain conditions are met, they’ll be fully exempt. The catch? You have to meet the following:
- The property must be your primary residence.
- You need to be a declared tax resident of Greece.
- Secondary or holiday homes, and anything owned by companies or legal entities, don’t qualify.
The exemption uses 2021 census data to check which settlements have fewer than 1,500 residents. The government says the full exemption will cost about €75 million a year—pretty minor compared to the €2.3 billion total ENFIA brings in.
Key Points Summarised
Aspect |
Details |
|---|---|
Number of Settlements Covered |
12,720 |
Population Limit |
Up to 1,500 residents |
Exclusions |
Settlements in Attica (except Islands unit) |
Property Value Limit |
Up to €400,000 taxable value |
Eligible Properties |
Primary residences only |
Non-Eligible Properties |
Secondary/holiday homes, company-owned buildings |
Tax Relief Timeline |
50% reduction in 2026, full exemption in 2027 |
Annual Cost to State |
Approx. €75 million |
Total ENFIA Revenue (annual) |
Over €2.3 billion |
Purpose and Impact
This measure tries to give tax relief mostly to folks in smaller communities, where property values and incomes are usually lower.
It lowers ENFIA for main homes in these areas, but blocks tax breaks for expensive or luxury properties and second homes. Owners of pricey properties in tourist hotspots will keep paying the full tax.
By focusing on people’s main homes with reasonable taxable values, the policy leans toward fairness. It also nudges people to stay in rural areas, which are often hit by depopulation and economic decline.
Impact on Property Taxable Value (φορολογητέα αξία)
The property’s taxable value is a big deal here. If it’s over €400,000, you’re not getting the relief.
This cap is meant to help regular homeowners, not those with luxury estates. Taxable value depends on things like location, size, and market prices—so in coastal tourist spots, even small places often miss out.
Significance for Main Residences (κύρια κατοικία)
The exemption only covers main residences—the home where you or your family actually live most of the time. Secondary homes or holiday houses, even in a qualifying village, don’t count.
This way, the relief helps everyday taxpayers, not people with multiple properties. It’s tied to your own use of the house, which makes sense for the policy’s social and economic goals.
Exceptions in Attica Region
Settlements in Attica (except the Islands unit) don’t qualify. Attica covers Athens and nearby urban areas, where property values and population are way different from the countryside.
Leaving Attica out stops tax breaks for city properties and keeps the support aimed at less populated, less wealthy regions. The Islands unit gets included since lots of island communities have tiny populations and face the same economic struggles as rural villages.
Details on ENFIA relief show who’s in and who’s out. The focus is on primary residence and property value limits, aiming support at smaller settlements and keeping big real estate owners from getting extra perks.
Analysis of the new tax measures: benefits for young people, pensioners, the self-employed, regions and islands
The new measures offer some real tax breaks and income support for a bunch of different groups.
Pensioners will see the personal difference in pensions disappear in two phases. This affects about 671,000 people, with nearly 300,000 getting the full increase for 2026.
The expected pension bump is around 2.7% by year’s end, based on a mix of inflation (estimated at 2.9%) and economic growth (2.4%).
When it comes to tax rates and families, those earning over €10,000 a year will pay less income tax. Families with four or more kids get a bigger tax-free threshold—up to €27,000.
It’s a response to Greece’s demographic woes. Births have dropped by about 40% over the last 15 years, and there are fewer people under 30 these days.
Here are some family examples:
Family Type |
Monthly Salary (€) |
Annual Tax Relief (€) |
|---|---|---|
Three children |
1,500 |
1,650 |
Many children |
1,800 |
4,100 |
These tax breaks start showing up in paychecks from January 2026.
Young people catch a break, too. If you’re under 25 and earn up to €20,000, you won’t pay any tax at all.
For incomes between €10,000 and €20,000, the tax rate drops hard—from 22% down to 9%. About 70,000 people under 25 and another 260,000 aged 26-30 should benefit.
Freelancers in small towns and villages (up to 1,500 residents) will see their tax load cut in half. That’s a real incentive to stay out of the big cities and keep local economies going.
For regions and islands, there’s a plan to gradually drop property tax for main residences in smaller settlements. The goal is to help keep people living and working in less populated areas.
Other tweaks include a 30% cut in deemed income for housing, and big reductions for vehicle-related deemed income. Basically, they’re trying to make it less painful to own a house or a car.
For anyone curious, there’s more detail in the full analysis of the tax and social benefits measures.
Tax Office: Which Receipts Offer Up to €2,200 Tax Relief
If you’re looking to trim down your tax bill for 2026, there’s a handy way to get up to €2,200 in relief—just by collecting the right receipts this year.
This perk kicks in when you pay electronically for services in certain professions that the tax office keeps a close eye on.
So, if you pay digitally and keep receipts from these 20 specific professions, your tax statement in 2026 could look a little less painful.
Here’s what you need to do to qualify:
- Make payments with debit or credit cards, prepaid cards, online banking, e-wallets, PayPal, or other digital options.
- Spend on services from a pretty broad list, mostly trades and personal care jobs.
- The most you can get relief for is €5,000 of electronic payments each year, and you get 30% of that knocked off your tax.
So, what kinds of services count?
- Veterinary services
- Plumbing, heating, electrical work, carpentry, insulation, masonry, plastering, tile or roofing installation
- Concrete and metal sheet work for windows and roofs
- Taxi rides
- Hairdressers, barbers, and beauty salons
- Funeral services
- Massage and wellness treatments
- Cleaning or domestic help
- Photo development
- Dance schools and gyms
- Leisure activities that need a subscription
- Personal care and nursing (but not hospital care)
- Legal services
- Childcare
Here’s a quick look at how the tax relief calculation works:
Electronic Spending (€) |
Tax Deduction (€) (30%) |
Notes |
|---|---|---|
5,000 |
1,500 |
Minimum threshold |
10,000 |
3,000 |
Above cap; relief capped |
15,000 |
4,500 |
Above cap; relief capped |
20,000 |
5,000 |
Maximum deductible amount |
If you spend more than €5,000 in these areas, you still only get the deduction on the first €5,000—so the most you can save is €1,500.
This only applies to people earning a salary, pension, or similar income. Companies and self-employed folks can’t use this particular tax break.
By requiring digital transactions, the government hopes to boost tax compliance and nudge people toward electronic payments.
They’re targeting professions that often pop up in the tax evasion “red zone,” so it’s not just about convenience—it’s about closing loopholes.
This scheme wraps up at the end of 2025. If you want the relief on your 2026 taxes, you’ll need to gather those electronic receipts before the year’s out.
If you’re curious about the details or want to double-check which professions and payment methods count, it’s worth digging into the official list.
More info’s up on the tax receipts eligible for relief.
