Global Daily Tax News, Greece To Overhaul Personal Tax Bands, (Sep 19, 2025)

The Greek Government has announced proposed reductions to the nation's personal income tax rates, including new tax reliefs for parents.

Currently, Greece has five income tax bands, of nine, 22, 28, 34, and 44 percent. The bottom rate applies to the first EUR10,000 (USD11,780) in income, and each rate thereafter applies to the next EUR10,000 of income, with the top, 44-percent rate applying to income of EUR40,001 or more. However, due to the personal tax allowance, the nine percent rate does not apply to persons with income up to EUR20,000.

The Government is proposing cutting personal tax rates by two percentage points, establishing a second rate of 20 percent, down from 22 percent, and a 26 percent rate in place of the 28 percent rate. A new 39 percent intermediate rate of tax will be introduced on income between EUR40,001 and EUR60,000. The 44 percent rate will be retained but apply to income exceeding EUR60,000.

Further, the Government has announced that parents will benefit from concessionary rates of tax that will typically be two percentage points lower per child.

For instance, the 20 percent rate will be reduced to 18 percent for taxpayers with one child, to 16 percent for taxpayers with two children, and to nine percent for taxpayers with three children. For taxpayers with four or more children, a zero rate will apply on income up to EUR20,000.

In respect of the new 26 percent rate, a flat two percentage point reduction will be afforded per child.

In addition, the Government is proposing waiving tax on income up to EUR20,000 for taxpayers aged up to 25 years old.