More than 5 million Greek households will benefit from permanent income support starting in 2026, through measures totaling €3.2 billion annually, included in the new State Budget submitted to Parliament this week by Economy and Finance Minister Kyriakos Pierrakakis.
The package focuses on housing, young people, and families, targeting areas where need is greatest.
The budget includes €1.76 billion in new measures, mainly permanent tax cuts and income increases, set to launch on January 1, 2026. It also records €1.5 billion in measures already implemented since 2025, such as the rent refund and €250 support payment to pensioners, which are now formally included in the State Budget.
Income taxation sees the most significant changes. Tax rates will drop by two percentage points for middle incomes above €10,000. For example, a worker earning €20,000 will pay 20% instead of 22%, gaining €200 per year.
Families see larger gains. Parents with one child will save €400, two children €600, three children €1,300, while large families with four or more children will be almost fully exempt from tax on incomes up to €20,000, gaining up to €3,100 annually, or €4,000 if self-employed. If both parents work, the benefit doubles.
Young people under 25 will pay no tax on incomes up to €20,000, gaining up to €3,100 or €4,000 if self-employed, while those aged 26–30 will automatically gain €1,300.
Employees and pensioners will see the benefit directly in their monthly pay, while self-employed workers will see lower advance taxes.
Housing measures encourage property owners to rent out vacant homes long-term through three-year full tax exemptions, while tax breaks for home upgrades continue and the rental income tax for incomes between €12,000–24,000 falls from 35% to 25%.
The budget also reduces ENFIA property tax by 50% in small settlements in 2026, with full abolition in 2027, applies a 30% VAT reduction on 19 Aegean islands, and removes the 10% fee on subscription TV nationwide, benefiting both residents and visitors.