A new round of tax cuts, with the main beneficiaries being households with owner-occupied housing, comes into force from today (16/03), following the posting of the ENFIA tax statements and the start of the process of filing tax returns for 2025 income.
The two main tax cuts that take effect today are a 50% reduction in ENFIA for primary residences located in thousands of small settlements across the country and a downward adjustment of living presumptions for nearly half a million taxpayers.
The new tax cuts come as a follow-up to the reduction of deductions for employees and pensioners, which was implemented at the beginning of the year, accompanied by additional regulations for young workers and families with children.
Due to the changes, which are part of the tax reform announced at the TIF, all tax rates for incomes between €10,000 and €40,000 – i.e. for the middle class – have been reduced across the board by two points. A further two-point reduction is also planned for each dependent child, while large families will see their tax burden for the first 20,000 euros reduced to zero.
Similar benefits accrue for young workers. Employees up to the age of 25 are now exempt from tax on income up to 20,000 euros, while those in the 26 to 30 age group are taxed at the particularly low introductory rate of 9%.
Reduction this year, abolition in 2027
The halving of ENFIA applies to all main residences located in settlements with up to 1,500 inhabitants outside Attica, while from 2027 these properties will be completely exempt from the tax.
The same arrangement – i.e. this year’s rebate and the future full abolition – applies to slightly larger communities in northern Greece. Specifically, it applies to settlements of up to 1,700 residents located in Western Macedonia, Evros or in border municipalities in Central Macedonia, Eastern Macedonia-Thrace and Epirus, with the aim of boosting the population’s stay in the region.
According to estimates by the economic staff, the measure covers nearly 13,000 settlements across the country, or about 94% of settlements, and will reduce the tax burden for about 1 million residential rights in these areas.
In addition to the ENFIA, small settlements in the region also benefit from a 50% reduction in the minimum imputed income for self-employed people living in them. This reduction is applied retroactively for the fiscal year 2025.
Final changes to presumptive income
As for objective living expenses, the tax reform provides favorable changes for both homes and cars.
For residences, in this year’s returns the rates at which the objective maintenance costs are calculated have been reduced by 30%. In addition, a significant discount of 35% is provided for the surcharge imposed on properties in areas where the zone price exceeds 2,800 euros per square meter.
As regards private vehicles, the tax relief results from the new way of calculating the presumption. Until last year, the objective cost was determined on the basis of engine displacement, while from this year it is calculated on the basis of carbon dioxide emissions, which leads to significant reductions for many owners.
In addition, the imputed burdens for adult dependent children are also being reduced. Specifically, people up to 18 years old and up to 25 years old when studying or serving their military service and in 2025 have earned any income are exempt from the minimum presumption of 3,000 euros.
