Greek Premier Unveils €1.6 Billion Tax Reform to Boost Middle Class

Greek Prime Minister Kyriakos Mitsotakis has announced a comprehensive tax reform package valued at approximately €1.6 to €1.7 billion, designed to support the middle class and families, particularly those with children. The reform includes cuts in income tax rates, new tax brackets, and exemptions for families with four or more children on the first €20,000 of income, aiming to address Greece's low birthrates and cost-of-living challenges. The plan also proposes raising the income threshold for higher tax rates to benefit low- and middle-income earners and pensioners, while promoting social equity across salaried workers, freelancers, and pensioners. The government intends to finance these reforms through strong economic growth and budget surpluses, marking the most significant tax overhaul in Greece’s modern history. The reform is set to be unveiled at the Thessaloniki International Fair, with an emphasis on fairness and direct financial relief for households struggling with inflation and rising housing costs. These measures reflect the administration's effort to ensure that economic growth translates into broader disposable income gains and social support.