Greece’s Economy and Finance Minister Kyriakos Pierrakakis specified a package of tax-cut measures unveiled on Sunday at the Thessaloniki International Fair by PM Kyriakos Mitsotakis during a press conference on Monday.

The estimated amount of the measures is costed at €1.76 for 2026 and an additional €2.5 billion in 2027. The finance minister said the measures included the largest tax-cut measures since the restoration of democracy in Greece in 1974 during the press briefing.

Some of the key measures regarding the tax bracket include the reduction of tax rates for incomes above €10,000, while taxes for income earners under 25 years old are completely scrapped.

Additionally, all tax rates are slashed and replaced with a new reduced 39% rate for incomes between €40,000 and €60,000.

The minimum income requirement for new mothers is being abolished for two years following childbirth.

Living expense imputation will be reduced by 30%. The system, which until now was based on engine size, will instead be calculated according to vehicle emissions.

Police, coast guard, and firefighting services personnel will see pay raises averaging €110 per month. Additionally, tax breaks are being introduced for sectors such as arms manufacturing, part of a broader effort to boost investment in Greece’s defense industry.

Starting in 2026, property tax (ENFIA) on primary residences in small settlements will be cut by 50%, with a full exemption taking effect in 2027.

The measure applies to properties owned by individuals who are tax residents of Greece and whose primary home, as declared on income tax filings, is located in settlements with fewer than 1,500 inhabitants. The exemption does not extend to settlements in the Attica region, except for the Islands regional unit.

Homes with a total taxable value above €400,000 are excluded, Finance Minister Kyriakos Pierrakakis announced while detailing the measures introduced by Prime Minister Kyriakos Mitsotakis at the Thessaloniki International Fair.

The measure is estimated to affect around one million property rights in 12,720 settlements across mainland and island Greece—out of a total of 13,586 settlements nationwide. The annual fiscal cost of the full exemption is projected at about €75 million.