This move comes as the administration attempts to contain public backlash stemming from a widening scandal involving OPEKEPE, the state agency responsible for agricultural payments. The controversy has reinforced public perceptions of political corruption and incompetence, with a recent GPO poll showing that 74.5% of Greeks disapprove of how the government has handled the case, and nearly the same percentage believe corruption is endemic across the political system.
These concerns are clearly translating into political cost. The poll indicates that support for the ruling New Democracy party has fallen from 26% in June to 23% in July, while the number of undecided voters has surged from 12.1% to 17.7%—a sign that public confidence is eroding.
In response, the government is assembling a comprehensive economic relief package designed to appeal to a wide swath of the population. At its core is a major overhaul of the income tax system, which will take effect in 2026. The plan aims to ease the burden on salaried workers, pensioners, the self-employed, and farmers by restructuring income brackets. The current second income bracket, which applies a flat 22% rate to annual earnings between €10,000 and €20,000, will be divided into smaller sub-brackets with lower rates, providing more targeted relief to low and middle-income earners. Higher income brackets will also be revised to introduce more gradual increases in tax rates. Though the reforms will officially begin in 2026, their effect on monthly tax withholdings will be felt as early as January of that year.
To further combat tax evasion and under-the-table payments—a persistent issue in the Greek economy—the government will also expand the scope of the existing 30% tax deduction available for specific expenses paid via electronic transactions. This currently applies to services like cleaning, childcare, and hairdressing, but will likely be broadened to include additional sectors where off-the-books payments are common.
Rental income will be taxed more leniently under the new plan. For landlords earning up to €12,000 annually, the tax rate could fall from 15% to as low as 7.5% or even 5%. For those earning between €12,000 and €35,000, the government is considering introducing a new intermediate tax rate, in an effort to spread the burden more equitably and encourage formal declaration of rental income.
Families, especially those with children, stand to benefit from targeted relief. Proposals include raising the tax-free threshold for households with dependents, and introducing new incentives for purchasing a home or a car—particularly aimed at younger families trying to establish financial stability.
Additionally, the government is reviewing potential changes to the property tax system. While no official cuts to the ENFIA tax have been confirmed, officials have announced that they will freeze the “objective values” of properties—the state’s assessed values used for tax purposes—until the end of 2027. This move is intended to prevent additional property tax hikes in a volatile housing market.
Another proposal under consideration is a 30% reduction in imputed living expenses used for tax assessments. These are not actual expenses but estimated costs tied to assets such as homes, cars, and boats, and affect around 1.8 million taxpayers annually.
The government is also weighing adjustments to minimum presumed income levels for the self-employed and small businesses. One proposal would extend the 50% reduced threshold, currently granted in specific areas, to more regions with low economic activity.
