The tax reform bill has been approved, characterized as “the largest tax reform of the post-dictatorship era,” overhauling the rental income tax system, tax brackets, presumptive taxation, along with a series of regulations for property tax, VAT and electronic payments. At the center of the new tax reform are changes to the tax scale with rate reductions, with taxpayers with children, young people up to 30 years old, and those with medium and higher incomes benefiting most. From the first month of 2026, employees and pensioners with annual incomes above €10,000 will see smaller tax withholdings in their monthly wages. Similar relief is provided for business income, while for public doctors the autonomous taxation rate for on-call duties is reduced to 20% (from the current 22%).
What the tax reform bill includes
- Electronic payment incentives are extended until the end of 2026. Specifically, the ability to deduct 30% of electronic expenses in specific sectors from taxable income is maintained, with a maximum limit of €5,000 per year. Additionally, fees to doctors, dentists, orthodontists, osteopaths, chiropractors, ophthalmologists, podiatrists and other paramedical services will continue to be counted double for covering 30% of income with electronic payments.
- New mothers who are professionals are exempted from presumptive income in the year of birth or adoption and for the following two years.
- The favorable regulation for professionals operating in settlements of up to 1,500 inhabitants is extended, offering tax relief and incentives to remain in small rural communities.
- Tax burdens are reduced for taxpayers with rental income exceeding €12,000 per year. An intermediate bracket of €12,000-24,000 with a 25% rate instead of 35% is added to the rental income tax scale.
- The three-year tax exemption for long-term property rentals previously declared as vacant or short-term remains until the end of 2026 and is enhanced.
- Property tax is reduced by 50% in 2026 and completely abolished in 2027 for primary residences in settlements up to 1,500 inhabitants or 1,700 in Evros with values up to €400,000.
- VAT is reduced by 30% in the North Aegean islands, the Dodecanese and Samothrace.
- Presumptive living standards are cut for residences up to 35%, cars by more than 50% and recreational boats up to 30%. The measure applies to this year’s income to be taxed in 2026.
- VAT suspension on new buildings is extended for all of 2026.
- A new framework for strengthening regional investments is established, based on European Regulation 651/2014. A 100% deduction of eligible expenses and fast licensing for investments until 2028, totaling €150 million, are provided.
- The subscription television fee is abolished.
- The new salary scale for Security Forces is implemented retroactively from October 1, 2025, bringing salary increases for personnel in the Greek Police, Fire Service, and Coast Guard.
