Tax Alert – 2025 Tax Reform Bill Submitted to the Hellenic Parliament
Tax Alert – 2025 Tax Reform Bill Submitted to the Hellenic Parliament
October 2025
Angeliki Miliakou, Partner, and Sofia Kournouti, Junior Associate
Kyriakides Georgopoulos Law Firm
A tax reform bill has been submitted to the Hellenic Parliament for voting and is expected to be adopted in the coming days. The bill introduces a comprehensive set of measures aimed at reducing the tax burden on individuals, supporting families and strengthening the income of young people.
Key amendments introduced by the bill include:
Reduction of Personal Income Tax Rates
The bill introduces reductions in personal income tax across multiple brackets and establishes a new tax scale for employment and pension income including new intermediary tax rates of 20%, 26%, 34% and 39%. Tax rates are further reduced for taxpayers with dependent children. Special provisions are introduced for young taxpayers up to the age of 25, and families with four or more children, where the first two brackets (up to €20,000) are fully tax exempt. For taxpayers aged 26–30, the rate for income up to €20,000 is set at 9%. The above provisions will be effective from tax year 2026.
In addition, new mothers engaged in business activity are exempt from minimum income thresholds during the year of childbirth and for the two (2) subsequent years. Moreover, the bill provides for reductions of the minimum annual presumed living expenses related to residential properties, vehicles and boats, effective for the 2025 tax year and onwards.
Reforms on Income from Real Estate
The bill reforms the tax scale applicable to income from real estate, introducing a new intermediate tax rate of 25% for annual income between €12,000 and €24,000 along with further adjustments to the remaining brackets. Additionally, the third tax bracket is increased from €35,000 to €36,000. These changes will apply to income earned from 1 January 2026 onwards.
Furthermore, the bill provides for the extension and improvement of the conditions, under which income derived from long-term rental is exempt from income tax for a period of 36 months.
Changes on Real Estate Ownership Tax (“ENFIA”)
For 2026, ENFIA will be reduced by 50% for individuals, whose primary residence is located in regions with a population of up to 1,500 inhabitants, based on the most recent census, excluding settlements within the Region of Attica and provided that the value of the full ownership of the property is less than €400,000. For 2027, ENFIA will be fully abolished under the same conditions.
Extension of the Suspension of VAT on Real Estate for 2026
Τhe application of VAT on real estate is further suspended until 31 December 2026, upon request by the property developer, and property transfer tax («ΦΜΑ») will be applied instead.
October 2025
Angeliki Miliakou, Partner, and Sofia Kournouti, Junior Associate
Kyriakides Georgopoulos Law Firm
A tax reform bill has been submitted to the Hellenic Parliament for voting and is expected to be adopted in the coming days. The bill introduces a comprehensive set of measures aimed at reducing the tax burden on individuals, supporting families and strengthening the income of young people.
Key amendments introduced by the bill include:
Reduction of Personal Income Tax Rates
The bill introduces reductions in personal income tax across multiple brackets and establishes a new tax scale for employment and pension income including new intermediary tax rates of 20%, 26%, 34% and 39%. Tax rates are further reduced for taxpayers with dependent children. Special provisions are introduced for young taxpayers up to the age of 25, and families with four or more children, where the first two brackets (up to €20,000) are fully tax exempt. For taxpayers aged 26–30, the rate for income up to €20,000 is set at 9%. The above provisions will be effective from tax year 2026.
In addition, new mothers engaged in business activity are exempt from minimum income thresholds during the year of childbirth and for the two (2) subsequent years. Moreover, the bill provides for reductions of the minimum annual presumed living expenses related to residential properties, vehicles and boats, effective for the 2025 tax year and onwards.
Reforms on Income from Real Estate
The bill reforms the tax scale applicable to income from real estate, introducing a new intermediate tax rate of 25% for annual income between €12,000 and €24,000 along with further adjustments to the remaining brackets. Additionally, the third tax bracket is increased from €35,000 to €36,000. These changes will apply to income earned from 1 January 2026 onwards.
Furthermore, the bill provides for the extension and improvement of the conditions, under which income derived from long-term rental is exempt from income tax for a period of 36 months.
Changes on Real Estate Ownership Tax (“ENFIA”)
For 2026, ENFIA will be reduced by 50% for individuals, whose primary residence is located in regions with a population of up to 1,500 inhabitants, based on the most recent census, excluding settlements within the Region of Attica and provided that the value of the full ownership of the property is less than €400,000. For 2027, ENFIA will be fully abolished under the same conditions.
Extension of the Suspension of VAT on Real Estate for 2026
Τhe application of VAT on real estate is further suspended until 31 December 2026, upon request by the property developer, and property transfer tax («ΦΜΑ») will be applied instead.
