Prime Minister Kyriakos Mitsotakis has unveiled a “historic” €1.6 billion tax cut package that will eliminate income tax for families with four or more children and provide significant relief for middle-class households.
In his annual keynote address at the Thessaloniki International Fair, Mr. Mitsotakis said the reform, which he called the boldest since Greece’s return to democracy, reflects his belief that the benefits of economic growth should be returned to citizens through lower taxes, not “handouts.”
The centerpiece of the plan is a dramatic reduction in tax rates for families.
For those earning between €10,000 and €20,000, the income tax rate will drop progressively based on the number of children, falling to zero for families with four or more.
The reform also creates a new, lower tax bracket for the middle class, reducing the rate from 44% to 39% for incomes between €40,000 and €60,000.
The new tax rates are scheduled to take effect in January 2026. Mr. Mitsotakis stressed that the €1.6 billion package is fully costed and complies with European Union fiscal rules.
