The budget surplus generated by the 2025 budget brings new support measures that will be announced at the TIF by Prime Minister Kyriakos Mitsotakis. The large tax relief package could exceed €3 billion, as the budget continues to generate surplus revenues. The government already has €1.5 billion at its disposal, an amount expected to double according to current indications. The surplus continues the upward trend of previous years, paving the way for adopting new support measures.
Primary surplus data
According to data from the State General Accounting Office, the primary surplus for the first half of the year reached €4.667 billion on a modified cash basis. The original target projected a surplus of €2.235 billion, while the corresponding period in 2024 recorded a surplus of €2.905 billion. The picture is particularly positive for tax revenues, which reached €32.296 billion for the same period, exceeding the target by €2.323 billion or 7.8%.
Greek economic growth
Essentially, the Greek economy is growing annually, creating permanent revenues that can be channeled toward tax relief. The new support measures will address both the income tax scale and the housing problem. As government sources note, the goal in every case is fiscal stability and strengthening measures that will lead to further reduction of tax evasion.
Professional associations’ proposals
Recently, professional associations have been submitting their own views on measures the government should adopt for 2026. Some of these have high costs while others are less expensive and serve a large number of taxpayers. The reality is that all options are on the table. However, no decision has been made on any measure, which will happen in late August when planning for 2026 is completed.
Scenarios being considered for TIF
The new support measures to be announced at TIF include multiple interventions:
• Changes to the personal income tax scale aimed at relieving taxpayers belonging to the middle class
• Reduction of tax burdens for property owners with possible changes to the rental income tax scale
• Interventions and relief in determining minimum taxable income for freelancers
• Substantial interventions to address housing issues with measures that will lead to opening closed apartments
• 30% reduction in living standard indicators, aimed at eliminating distortions and achieving fairer distribution of tax burdens
Targeting the middle class
Particular emphasis is placed on relieving taxpayers belonging to the middle class, which supported fiscal adjustment during the difficult years of the bailout programs. These are citizens with incomes from €20,000 to €40,000. In this context, adding an intermediate rate to the income bracket from €10,001 to €20,000 is being considered. Also under consideration is raising the income threshold above which the maximum tax rate of 44% applies, currently imposed on income exceeding €40,000.
