O Primeiro-Ministro Grego, Kyriakos Mitsotakis
Fiscal package announced by Mitsotakis provides tax courts worth 1.6 billion euros, which should benefit about 4 million people. Tax revenue higher than expected and primary budgetary surplus help support tax reduction.
As we said here at Zap last month, that we all had our heads: Greece continues to surprise.
The Prime Minister Kyriakos mitsotakis announced this Saturday a package of Tax cuts in the amount of 1.6 billion from euros, during a general policy speech at the Salonica International Fair.
The annual presentation of the Greek government head at this fair, which runs every year in September, is traditionally dedicated to Definition of economic lines For the following year, as well as the analysis of the results achieved by the government.
In her speech from last year, Mitsotakis had stated that “I didn’t come with a bag full of gifts.”
This time, the intervention focused precisely on benefits intended for Increase the income of millions of Greeks. According to the Prime Minister, the main beneficiaries, namely middle class, young people, pensioners and numerous families, should ascend to about 4 million people.
Although it was not a “rain of promises”, it was evident that the speech already had the next legislative elections, scheduled for July 2027, note a.
In 2023, New democracy of Mitsotakis obtained the country’s legislative elections. Conservatives collected 40.55% of votesthat is, more than twice the obtained of its main opponent, the Syriza de Alexis Tsipras.
The package of tax courts, limited by the expense rules imposed by the EUwill be funded thanks to a Tax Revenue higher than expected and to a primary budgetary surplus, which excludes debt charges. The measures will be registered in the State Budget for 2026, whose vote is scheduled for December.
In addition to the minimum (9%) and maximum (44%) rates, all remaining will be reduced by 2 percentage points – with added benefits to families, especially those who have three or more children.
Os Young people under 25 with yield up to 20,000 euros per year will be exempt from IRSwhile those who are between 25 and 30 years will have significant reductions.
Also income from lease will be taxed at lower rates, although Mitsotakis has underlined that the amounts declared in this category are, in many cases, “irreastically low”.
Os residents on islands with less than 20,000 inhabitants They will have a 30% reduction in VAT, and those living in villages will see taxes on the reduced assets over the next two years. Greece has over 6,000 islandsof which 227 are inhabited.
In addition, measures will be taken to mitigate the scarcity housesL, including the construction of housing on old military land.
Workers and pensioners should feel the impact of these changes in January 2026 receipts.
The goal is double: Reinforce the income available at a time of persistent inflation, especially in food goods, and combat Greece’s serious demographic problem, supporting families.
With an average of Only 1.4 children per womanwell below the replacement rate of 2.1, the country’s population is expected to fall from the current 10.2 million Less than 8 million in 2050. In 2021, the median age of the Greeks was 44.7 years, the seventh highest worldwide.
Kyriakos Mitsotakis also stressed that Greece will remain committed to budgetary stabilityin a context of international instability in which “commercial wars shake whole economies.”
on the sidelines of the Mitsotakis Disc Bear, and like what happens every year, they Three parallel protests: One organized by the trade union centrals, another by a communist inspiration union and a third party by the far left.
The demonstrations almost all in a peaceful wayalthough participation has increased by less than 7,500 people in 2024 to over 16,000 this year, according to police data. Beyond the slogans against the government, they also heard Expressions of support for the Palestinian cause.
