More than 5 million Greek households will receive permanent income support from 2026 under measures totalling €3.2 billion annually in the new State Budget submitted to Parliament by Economy and Finance Minister Kyriakos Pierrakakis. The package prioritises housing, young people, and families.
The budget introduces €1.76 billion in new measures, mainly permanent tax cuts and income increases, effective January 1, 2026, while also recording €1.5 billion in actions already implemented since 2025, including the rent refund and the €250 support payment to pensioners.
Income tax reforms form the core of the package, with tax rates falling by two percentage points for middle incomes above €10,000.
A worker earning €20,000 will now pay 20% instead of 22%, gaining €200 annually.
Families will benefit further, with parents saving between €400 and €1,300, depending on the number of children. Large families with four or more children will be almost fully exempt from tax on incomes up to €20,000, gaining up to €3,100, or €4,000 if self-employed, with benefits doubling when both parents work.
Young people will also see substantial reductions: those under 25 will pay no tax on incomes up to €20,000, gaining up to €3,100 or €4,000 if self-employed, while people aged 26–30 will automatically gain €1,300.
Employees and pensioners will see the increases in their monthly pay, and self-employed workers will face lower advance tax obligations.
Housing incentives include full three-year tax exemptions for renting out vacant homes long-term, continued tax breaks for home upgrades, and a reduction in rental income tax from 35% to 25% for income between €12,000–24,000.
The ENFIA property tax will be reduced by 50% in small settlements in 2026, with full abolition in 2027. The budget also applies a 30% VAT reduction on 19 Aegean islands and removes the 10% subscription TV fee nationwide.
Prime Minister Kyriakos Mitsotakis confirmed that the additional €250 pensioner support will be paid earlier than planned.
“The new, permanent additional support of €250 will be deposited into their accounts earlier than planned, from tomorrow, Monday,” he said, announcing the new payment date of Monday, November 24.
He added that this marks the beginning of a series of income increases for pensioners.
“And it will be the first of a series of increases they will see in their incomes, as from January they will see a rise in their earnings both due to the reduction of tax rates and due to the annual increase in pensions. While starting from December (January pensions) there is also the 50% abolition of the personal difference for those pensions still affected by it,” he noted.
The advance payment is part of broader efforts to strengthen pensioners’ purchasing power and reduce disparities in pension payments.
