By Vangelis Dourakis

All the money in .. tax cuts: The Prime Minister Kyriakos Mitsotakis Leaving aside any suggestion to increase or expand the number of beneficiaries of a series of benefits, ‘Bet’ in the brave ‘haircut’ of direct taxation. “Winners” all come out of these decisions, and especially families with children, as tax rates are “clipped” by 5%. There is a zero tax for young men and young people.

Tax haircuts and rents, but only for those who receive rents of more than 1,000 euros per month, a half -first reduction and abolition immediately after ENFIA to villages, expanding a reduction of 30% of VAT and other islands, beyond those who receive 30% of immigrants.

Pensioners will see the personal difference to abolish and uniform increases.

In any case, the changes in income tax are “sweeping” and multilevel.

What changes with income tax rates

In particular, the tax rates are reduced by two units for all, except for the 9%quotation mark. For incomes between 40,000 and 60,000, the “scissors” at the rate is 5%, while the highest rate remains at 44%, but will now “catch” income above 60,000 euros.

Specifically, the changes are:

  • The rate for the annual income section of up to EUR 10,000 remains at 9%.
  • For income from 10,000.01 euros to 20,000 the tax from 22% falls to 20%.
  • In the “track” of income from 20,000.01 to 30,000 euros from 28%, it drops to 26%.
  • The tax rate for the annual income section from 30,000.01 to 40,000 euros from 36% goes to 34%.
  • For incomes between 40.000.01 and 60,000 euros as mentioned above, the rate of 44% lands to 39% with “scissors” being 5%
  • The maximum rate of 44% will now apply to the “part” of incomes exceeding 60,000.01 euros, instead of 40,000.01 euros and above today.

Extra Reduction Families for Families with Children

Families with children will adopt an extra 2% reduction for each child and up to two for the “part” of income from 10,000.01 euros to 30,000 euros. So,

  • Anyone who has 1 child for the part of the income from 10,000.01 euros to 20,000 will have a rate of 18% and the one with 2 children will have 16%, while
  • For the amount from 20,000.01 to 30,000 euros the rate falls to 24% for a child and 22% for those who have 2 children.

For them trite The rates are even more cut off, always for the part of the income from 10,000.01 euros to 30,000 euros.

In particular for three -year -olds

  • For the amount of 10,000.01 euros to 20,000 the rate is 9% with the tax limited to half
  • For part of the income from 20,000.01 to 30,000 euros the rate is set at 20%.

Who will have zero tax

Zero tax for an important part of income is instituted for those with 4 children and above.

Specifically, for the many children:

  • The amount from zero euros to 20,000 euros has a tax rate 0!
  • For income from 20,000.01 euros to 30,000 euros is imposed 18%

Thus, given the aforementioned interventions, this will practically mean “profit” for families with children specified as follows for up to 20,000 euros: with 2 children 600 euros, with 3 children 1,300 euros, with 4 children 1,680 euros.

It is also established also zero tax for new workers up to 25 years and for amounts up to 20,000 euros. With 15,000 euros in income, the annual benefit is € 1,283 and with € 20,000 for an annual benefit of 2,480 euros. But at ages 25 to 30, they will remain in favorable status, as they will be taxed at a rate of 9% instead of 22% for incomes of up to 20,000 euros.

It should be noted, however, that these tax changes They relate to the income of 2026in other words, any profits that will be made by submitting statements in the summer of 2027.

After all, from January 1, 2026, salaries will be increased by the side … due to the “clipped” deductions.

The reduction in rent tax

A new 25% intermediate rate on rents from € 12,000 to 24,000 euros is introduced.

Today, income from real estate exploitation, namely rents, are taxed independently on the basis of rates scale of 15% to 45%.

In particular:

  • Annual taxable income from real estate up to 12,000 euros, taxed from the first euro at a rate of 15%. The maximum tax amount for this income step reaches EUR 1,800 (EUR 12,000 X 15% = 1,800 euros).
  • Annual taxable income from real estate between 12,000.01 euros and EUR 35,000, taxed at 15% for the first 12,000 euros and 35% for the next 23,000 euros, ie for the income section from 12,000.01 to 35,000 euros. As a result, the maximum tax amount for the income of this step is EUR 9,850 (EUR 12,000 X 15% + 23,000 euros X 35% = EUR 9,850).
  • Annual real estate incomes of over 35,000 euros are taxed with 15% for the first 12,000 euros, with 35% for the next 23,000 euros and with 45% for the excessive amount, beyond EUR 35,000.

To abolish ENFIA in villages – measures for pensioners and uniforms

The Prime Minister also announced a number of other interventions, namely:

  • It is reduced by half the ENFIA from 2026 to the villages up to 1,500 inhabitants and is completely abolished in 2027.
  • Reduces by 30% VAT on the acrimonious islands under 20,000 inhabitants
  • Half a half in 2026 and the personal difference for 600,000 pensioners is abolished in 2027, in addition to the profits of tax rates and the annual increase they receive on the basis of growth and inflation
  • A 30% decrease by 30% of living presumptions for homes and cars for 500,000 taxpayers
  • The favorable criteria for freelancers in settlements of up to 1,500 residents are expanded.
  • There are also salary increases for Armed Forces and Security Forces executives through the reform of their special salaries.