Smaller than those announced at the Thessaloniki International Fair (TIF) by Prime Minister Kyriakos Mitsotakis, the tax relief measures that about 4 million taxpayers are set to receive are expected to be, due to inflation, according to a report in Kathimerini.
Inflation is expected to remain high next year, reducing citizens’ purchasing power, meaning that the benefits of the tax cuts could be wiped out within the next 2–3 years.
At the same time, there is a risk that those receiving a small raise (e.g. uniformed officers) may be taxed at a higher rate and lose their tax relief benefits, with employees seeing a reduction in withheld taxes from January 2026 and the self-employed at the settlement of their 2027 tax returns (for 2026 income).
Meanwhile, the percentage of citizens stating they are just getting by rose to 65% in September from 59% in July, according to a new IOBE survey.
According to Kathimerini, the reduction in tax relief could be avoided if the tax brackets were automatically adjusted each year in line with inflation (as in France), that is, if tax indexation were applied.
For example, if indexation were applied with inflation at 3%, the first tax bracket, currently €0–€10,000, would rise to €10,300, with the other brackets adjusted accordingly.
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