“The boldest reform in income tax in the history of the Transfiguration of 1.6 billion euros,” Prime Minister Kyriakos Mitsotakis announced yesterday from the 89th TIF step. In fact, it is a barrage of tax reforms that affects about 4 million taxpayers and includes a two -point general reduction in all tax rates, with the exception of the import, with an increase in deduction depending on the number of children, a decrease in tax, 20%, 20%, 20% of Gradual elimination of personal difference for about half a million pensioners.

In particular, as the prime minister announced, From the following year, all tax rates are reduced, except for quotation marks, which remains at 9%, by 2 percentage points for incomes of 10,000 to 40,000 euroswhile they will recede even more depending on the number of children.

Based on the examples given by the Prime Minister himself:

  • For income of 10,000-20,000 euros:

From 22% decreased to 18% with one child, 16% to two children, 9% for three -year -olds and zeroed for older children.

The annual benefit for incomes of up to 20,000 euros is estimated at: 400 euros for a child, 600 euros for families with 2 children, at 1,300 euros for families with 3 children and for families with 4 children at 1,680 euros.

  • Correspondingly, for income of 30,000 euros:

The annual benefit: Without children 400 euros, with 1 child 800 euros, with 2 children 1,200 euros, with 3 children 2,100 euros, with 4 children 4,100 euros.

  • For incomes of 40,000-60,000 euros, a 39% intermediate rate is established, from 44% today.

Yet

– Established a 25% rate, from 35% currently in force, for rents from 12,000 to 24,000 euros, (for incomes of up to 12,000 euros is 15%) while the prime minister said open to further rent tax cuts if there is more tax compliance.

– Reduces to 50% by 2026 and reset by 2027 in villages up to 1,500 inhabitants. Specifically, the prime minister said that ENFIA is declining by 2026 in the villages up to 1500 inhabitants and is completely abolished in 2027. He also said that Reduces 30% VAT on the acrimonious islands under 20,000 inhabitants.

Zero tax for employees up to 25 years of age and income of up to 20,000 euros and reduction of personal difference

However, perhaps the most important incision that is attempted in this wide tax reform is perhaps the most important incision. “Our most important intervention concerns young people,” the prime minister said and announced zero tax for employees up to 25 years and income of up to 20,000 euros and a decrease of 9% from 22%, to their 30s.

On the basis of the examples given by the initiative for young people it is formed as follows:

-To 25 years old, with 15,000 euros: Annual benefit of 1,283 euros

-To 25 years old, with 20,000 euros: Annual benefit of 2,480 euros

-From 26-30 years, with 20,000 euros: Annual benefit of 1,300 euros.

The table with the new income tax rates that released the RIS

Still the Prime Minister announced Increases for uniforms and diplomats With the new upgraded salary of Armed Forces, Greek Police, Fire Brigade, Coast Guard-Greek Coast Guard and Diplomatic Corps.

Mr Mitsotakis also announced that the discount on investment in defense and vehicles is doubled. So the aid can be up to € 150 million.

For small and medium -sized enterprises, he said that the Ministry of Development’s bill was ready to further simplify licensing procedures.

Still, for them pensioners announced that is reduced to half the personal difference and is completely removed from 2027.

At the same time, as noted in a post in X, there will be Reduction of Living Divisions for Homes and Cars for 500,000 Taxpayersas well as a reduction of 50% of the imputed income for freelancers in settlements outside Attica up to 1,500 inhabitants but also an exception to the imputed income of the new mother during the year of birth for 2 years.

The specialization of the measures announced by the prime minister will take place on Monday by the Minister of National Economy and Finance Kyriakos Pierrakakis.