With a clear focus on supporting middle-class citizens, who have traditionally formed the backbone of the Greek economy and who have borne the brunt of the crisis, the government is currently planning a new package of tax cuts, which Prime Minister Kyriakos Mitsotakis is to officially present in September at the 89th Thessaloniki International Fair (TIF), government sources revealed on Sunday.
This new package will be added to the permanent measures of 1.1 billion euros announced during the week for the support of tenants and low-income pensioners, and to strengthen the Public Investment Programme.
Precise details concerning the scope of the measures will be decided in the coming months, once there is a clearer picture regarding the rate of growth of the economy and the fiscal space available, the sources said. As analysts and top echelons of the government's economic staff report, two factors will determine the size of the package: the first concerns the fallout of the international trade war that is underway and the second relates to the course of tourism. To a lesser extent, it will also depend on whether tax payers meet their obligations to the state but here, the executives note, a stable payment culture has been established, which will be hard to disrupt when there is smooth economic progress.
The cuts will be carried out on two levels: that of taxes and social security contributions. The measures will be implemented from 2026, provided that there are no adverse developments that halt the growth of the Greek economy.
According to the government sources, the goal is twofold: on the one hand, to strengthen the disposable income of the middle classes and, on the other hand, to establish a stable and socially fair tax environment, capable of acting as a lever for boosting consumption and attracting investment.
As the prime minister pointed out in a recent interview on the website protothema.gr, “ the next TIF, in terms of the tax reduction component, will be aimed at reducing taxes for the middle class.” At the same time, he stressed that as long as the economy continues to do well and the fiscal balance is not threatened, while rating agencies continue to upgrade Greece's economy, "Greek citizens can expect better days".
According to sources, the aim is to finalise the package of measures in August, working on five main axes:

1. Reform of the income tax scale for individuals, so as to reduce the tax burden on those earning between 20,000 and 40,000 euros a year. This may involve an intermediate tax bracket between incomes of 10,000 and 20,000 euros that mitigates the "jump" from a 9% to a 22% percent tax rate, and a revision of the upper tax rate of 44%.

2. Relief for owners of rental properties, with amendments to the current tax scale.

3. Housing policy with a social dimension, such as subsidising interest rates for vulnerable borrowers and rent support.

4. Reduction of presumptions on maintenance costs (the minimum presumed income to maintain assets) by 30% to address tax injustice and to rationalise the tax base, so that it better reflects the actual capacity of citizens to pay.

5. Further reduction of social security contributions by 0.5 percentage points in 2026.