Greece announces €1.6 billion tax reform to support families

Greek Prime Minister Kyriakos Mitsotakis on Saturday announced generous income tax breaks to boost households with children, part of a tax reform worth 1.6 billion euros ($1.87 billion).

The plan, set to take effect in 2026, includes a two-percentage-point reduction in all tax brackets and a zero tax rate for low-income families with four children, addressing falling birth rates and high housing costs.

The reforms will be funded by strong economic growth, a higher-than-expected budget surplus, and improved tax collection.

Mitsotakis also pledged increased pensions and the removal of a real estate tax in remote areas to encourage young people to move away from big cities.

"We are all well aware that Greeks are struggling to make ends meet. Therefore our non-negotiable priority is to prop up their income," he said.

Despite these measures, Greece remains Europe’s most indebted nation, with disposable incomes lagging behind the EU average.

Mitsotakis’ New Democracy party has seen declining ratings, with opinion polls showing support at 22-25%, down from 41% in 2019. Thousands protested in Thessaloniki, calling for higher wages and better living standards.

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