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Major reforms announced in Cabinet meeting: Tax cuts, defence overhaul, and legal migration policy

1 October, 2025

Key reforms were presented at yesterday’s Cabinet meeting chaired by Prime Minister Kyriakos Mitsotakis, focusing on three main areas: taxation, defence, and migration.

Finance Minister Kyriakos Pierrakakis introduced a comprehensive tax reform bill titled “Tax Reform for Demographics and the Middle Class”. The plan, reflecting announcements from the Thessaloniki International Fair, includes income tax cuts for families and young workers, gradual abolition of property tax (ENFIA) in small villages, reduced VAT rates for Aegean islands, new incentives for electronic payments, and salary increases for security forces and researchers.

Defence Minister Nikos Dendias outlined the “Transition Map” for the Hellenic Armed Forces, introducing a modernised hierarchy, upgrading non-commissioned officers’ schools to university level, and establishing voluntary service for women aged 20–26.

Migration Minister Thanos Plevris unveiled a new Legal Migration Framework, aimed at faster residence permit issuance, attracting workers in sectors facing labour shortages, and introducing “fast-track” migration for strategic investments. The plan also supports refugee integration through Greek language training and employment programs, replacing dependency on state benefits.

These initiatives mark the government’s broader vision for a modern, socially responsible, and economically resilient Greece.

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