New Budget: Tax Cuts, Wage Hikes & Incentives

The new state budget includes tax cuts, wage and pension increases, and incentives for housing and investment, with a total cost of €7.7 billion over the three-year period 2025-2027.

2025 Measures: Reduction of insurance contributions by one percentage point, abolition of the business tax, increase of pensions by 2.4%, annual allowance of €250 for low-income pensioners, extension of "My Home II" program, tax exemption for vacant properties, and annual rent refund for 80% of tenants.

2026 Measures: Tax reform with reduced rates up to €40,000, new bracket of 39% up to €60,000, tax exemptions for young people up to 25 years old, reduction of imputed income and objective expenses, reduction of ENFIA property tax for main residences in small settlements, reduction of VAT on the islands of the North Aegean and Dodecanese.

2027 Measures: Increase of the minimum wage to €950, cessation of offsetting pension increases with the personal difference.

In addition, increases in public sector salaries, reform of special salary scales, and benefits for the diplomatic corps, university professors, and researchers are planned.