The Ministry of National Economy and Finance proceeded with the specialization of the measures announced by Prime Minister Kyriakos Mitsotakis at the TIF, for salary increases and tax reductions.

The Minister of National Economy and Finance Kostis Hatzidakis and Deputy Ministers Christos Dimas and Thanos Petralias proceeded to analyze these measures.

“It became clear that the government seeks to see as a priority some critical issues for the economy and society, such as demographics, housing, the issue of climate change,” said the Minister of Finance during his introduction. Kostis Hatzidakis. “At the same time, it faces a number of demands from various social groups. All of this is proceeding within the framework of the Greek economy’s strengths,” he said.

“We are one of the countries with the fastest speeds,” explained Mr. Hatzidakis. “The data from Eusostat showed that we have multiple growth rates, Greece is the second in the EU in terms of growth rates. We also have three times the annual revenue growth rates. We have an increase in investment, in exports, the biggest reduction in unemployment in the whole EU, we have an increase in the average wage by 20.2% and the minimum wage by 27.2%. We not only have a reduction in bad loans but also a reduction in overdue debt, we have an increase in deposits and a recovery of the investment grade. We also consistently exceed fiscal targets. Funds for public investment will further increase this year.

We have an increase in tax revenues, we are advancing the 11 initiatives to limit tax evasion, 10 different nationalizations have been advanced. Also, the iris system is mandatory for freelancers. We have improved the extrajudicial mechanism and we also have a new image on the beaches” pointed out Mr. Hatzidakis.

Mr. Hatzidakis also stated that “net spending growth will reach 2.8 billion euros in 2025 and may reach 3.5 billion euros.”

12 salary increases

• New increase in pensions from 1/1/2025 (estimated around 2.2-2.5%, cost 400 million euros)
• Expansion of the target achievement allowance (cost €40 million)
• Incentive to attract doctors to problematic and barren areas, (cost 16 million euros)
• 200 euro boost for OPECA DISABLED allowance beneficiaries (cost 37 million euros)
• Extraordinary financial aid of €100-200 for pensioners with a personal difference (cost €100 million)
• Increase of the student housing allowance for the Peripherals. Universities (from €1,500 to €2,000 per year and €2,500 for shared accommodation, cost €15 million)
• An additional installment to OPECA child benefit beneficiaries (cost 70 million euros)
• 200 euro subsidy for uninsured seniors (cost 7 million euro)
• Horizontal increase of public sector payroll, so that the introductory one does not fall short of the minimum wage (cost 2100 million euros)
• Increase by 20% of the compensation of night uniforms (cost 25 million euros)
• 200 euro boost for beneficiaries of EFKA disability allowances (cost 7 million euros)
• Additional 50% of the monthly allowance to beneficiaries of the Minimum Guaranteed Income (cost 22 million euros)

12 tax cuts

• 1% reduction in insurance contributions from 2025
• abolition of the pretense fee for freelancers.
• permanentization of the return of the EFFK to agricultural oil
• income tax exemption for vacant properties to be rented out
• exemption from VAT for new constructions
• abolition of the fiber optic fixed telephony fee for connections over 100
• exemption from insurance premium tax for children up to 18 years old
• tax exemption of voluntary business benefits for new parents
• ENFIA reduction for homes insured against natural disasters
• independent taxation of NHS doctors
• incentives for innovation and mergers
• stamp duty reduction in a series of transactions

As for salary increases

For the NHS doctors

For the horizontal salary increase of public servants

For the crew

For insurance contributions

Indirect increases of 0.5% on the salary of public and private employees from the beginning of 2025 lead to the government’s decision to reduce contributions by half a percentage point for employees and by half a percentage point for employers.

The total benefit for employers and employees reaches 440 million euros.

For freelancers

For closed houses

Owners of closed apartments have 15 months until the end of 2025 in order to make them available for long-term leases and benefit from the three-year income tax exemption on the rents they receive.

Specifically, anyone who converts their property from a short-term lease to a long-term one will be exempt from income tax for 3 years.

A condition is that the residence is up to 120 sq.m, the property is vacant or on a short-term lease for at least 3 years and a long-term lease is made for at least 3 years.

Foreclosed properties are currently estimated at around 600,000

ENFIA and property insurance

Reduction of ENFIA by 20% for residences insured for natural disasters

– The ENFIA reduction is doubled for homes with a taxable value of up to 500.00 euros if they are insured for natural disasters from 10-20%.

– 10% discount for homes with a taxable value of more than 500,000 euros. They must be insured for natural disasters by 1/6/2025.