The government’s economic team is expected to present the final plan for the benefits package immediately after the August 15 holiday, to be announced at the Thessaloniki International Fair (TIF).
The total cost of the measures is estimated to reach between €1.5 and €2 billion, with the primary goal of supporting the middle class, which has faced significant pressures in recent years due to increased taxation and economic challenges.
A key measure of the package is the radical reform of the income tax scale. Special attention is given to the second income tax bracket, ranging from €10,000 to €20,000, currently taxed at 22%. Under the new system, this bracket will be split into smaller segments with lower tax rates, resulting in substantial relief mainly for salaried workers and pensioners. For example, an employee earning €15,000 annually could be taxed at 15% instead of 22%, saving several hundred euros each year.
Additionally, new intermediate tax rates for incomes above €20,000 are being considered, aiming for a fairer distribution of the tax burden. Although these changes will take effect in 2026, their implementation will begin with tax withholding starting in January of the same year.
The package also includes an expansion of the 30% tax deduction through electronic receipts to more services, such as hairdressers, cleaning services, transport, and veterinary care. This aims to combat tax evasion and promote electronic transactions.
Finally, a significant reduction in rental income tax is planned. The initial tax rate for incomes up to €12,000 is proposed to be reduced from 15% to 7.5% or even 5%, while an intermediate rate for incomes between €12,000 and €35,000 will be introduced to avoid sudden tax increases and encourage declaration of real incomes.
This benefits package is expected to provide a significant boost to the middle class and help alleviate the economic hardships faced by citizens over recent years.
