Prime Minister Kyriakos Mitsotakis did not rule out the possibility of new reductions in rental income tax within 1 to 2 months during his press conference in Thessaloniki, following yesterday’s announcements at the Thessaloniki International Fair opening ceremony.
It should be noted that from the moment these measures were announced, it was mentioned that the tax imposed on rental income, which is already being drastically reduced with the prime minister’s announcements, could be further decreased if property owners begin declaring their actual rental amounts. In this direction, the government legislated last year – with implementation from November 2025 – the return of one month’s rent annually to tenants. However, from the podium at Vellidio, Kyriakos Mitsotakis revealed that the potential new reduction will not be long in coming, giving a timeframe of 1 to 2 months.
What Mitsotakis announced about rental income at the fair opening
As a reminder, at the fair opening, the prime minister announced rental tax reductions for 150,000 property owners, establishing a lower 25% rate for rental income between €12,000 and €24,000. Until now, there was a uniform 15% rate for every landlord up to €12,000. After that, however, it jumped sharply to 35%. The establishment of the new rate initially benefits 150,000 small property owners who were being disadvantaged. At the same time, the regulation also aims at tax compliance.
Thus, the government is “betting” that since taxation is reduced with the intermediate rate and the return of one month’s rent every November is now permanent, owners and tenants will henceforth have an incentive to declare actual rental amounts. Indeed, when this happens, further reductions in property taxation will be examined, which the prime minister now places by November.
