Four new elements bring changes to the tax landscape for large families, with which families with many children appear to be completely satisfied.
Large families: The four “key” points of the measures
Specifically:
-The new tax rates apply not only to employees and pensioners, but also to freelancers and farmers (therefore, in this case, to large families as well).
-The tax reduction, as it applies, is not abolished but will continue to be implemented, in addition to the new reduced tax rates, proportionally expanding the benefit for families with children.
-The imputed income of freelance professionals from large families is practically reduced to zero. For families with 4 dependent children and above (large families), the tax rate is completely zeroed for amounts up to €20,000.
-Dependent children will pay tax on actual income and not on imputed income, so this permanent demand of large families will also be implemented.
Kyriakos Pierrakakis: Meeting with the Supreme Confederation of Large Families of Greece
The Minister of National Economy and Finance Kyriakos Pierrakakis, with the political leadership of the ministry, met last Tuesday, one day after the specification of the measures, with the Supreme Confederation of Large Families of Greece (ASPE), with ministry circles stating that many of the requests from large families that were raised at the beginning of the summer were accepted. Moreover, Mr. Pierrakakis’ intention is to make this cooperation with the Confederation of Large Families institutional, so that there is room for discussion and information on specific economic and tax issues that may concern them.
According to ministry officials, the new tax policy lays the foundation for Greece to acquire family-friendly taxation, to give prospects to young people to start families, to provide economic relief to families with children and to give recognition to large families, with main emphasis on those with four or more minor dependent children.
Specifically, according to the new measures announced at the Thessaloniki International Fair and detailed on September 8 by the minister:
-The tax rate is reduced to 18% (for amounts from €20,000 to €30,000), to 34% (for amounts from €30,000-€40,000) and to 39% (for amounts from €40,000-€60,000) as applies to other categories of taxpayers, with the introduction of an intermediate rate for amounts up to €60,000 for the first time.
-The new tax-free threshold for large families is set at €27,100 for 2026 (compared to €13,000 in 2025) regardless of age. This applies to taxpayers up to 25 years old, those 25-30 and those over 30 years old (categories affected by the new measures).
Based on these data, a family of four with a monthly net salary of €1,800 will have a tax reduction of €4,100 annually – an amount that exceeds two net salaries. And if both parents work, 4 salaries. It is understood, ministry sources state, that large families living in villages and settlements with up to 1,500 inhabitants will also benefit like any other citizen from the new measure providing for a 50% ENFIA reduction in 2026 and complete abolition in 2027.
First example for freelance professionals from large families: With an income of €20,000 and monthly salary of €1,200, they would pay €3,100 tax, now they will have zero tax.
Second example: A freelance professional from a large family with €15,000 income and salary of €920 per month, would pay €2,000 tax, which is zeroed.
Ministry officials add that an important additional measure affecting all families and all citizens is the reduction of the rental income tax rate, with the introduction of an intermediate rate of 25% for rental income from €12,000-€24,000 from 2026. All freelancers will be similarly benefited by the VAT reduction on border islands, whether from large families or not. VAT is reduced by 30% on Aegean border islands with up to 20,000 inhabitants.
It is noted that according to ASPE data: 57,000 families have 165,000 dependent children up to the age of 25. 27,000 families have more than 4 children. 5 families have 12 children. Only one family has 14 children.
