Greek tax bill tabled in parliament cuts period-product VAT and raises birth allowance

What the bill contains

The Ministry of National Economy and Finance tabled a bill in Parliament on 4 November that writes into law the measures Prime Minister Kyriakos Mitsotakis announced at the ΔΕΘ fair. After public consultation the text grew from 48 to 52 articles. Most measures apply from 2027, while several take effect earlier or carry retroactive force. The package combines income tax relief, indirect tax cuts, support for families and vulnerable groups, and changes to property taxation and wages. The timetable runs from a preschool programme change dated 1 September 2026 to most tax cuts starting on 1 January 2027.

Tax relief for families, farmers and businesses

Under article 4, the zero rate on income up to 20,000 euros extends to taxpayers with three dependent children from the 2027 tax year. Wage earners would see that benefit in withholding tax from the start of the year. Professional farmers whose income comes at least 50% from farming would pay no tax on the first two profit brackets of an individual farming business. Article 12 cuts the advance income tax payment on individual business activity from 55% to 50%. Article 14 exempts seats and branches of legal entities outside Attica, including the Islands regional unit, from the business levy (τέλος επιτηδεύματος) from the 2026 tax year, while the levy in the rest of Attica falls by 50% from 2027.

Property owners and VAT

Article 15 widens the ENFIA exemption on primary homes from 2027 to settlements of up to 2,000 residents, with a 2,200 threshold in Western Macedonia. The exemption covers homes with a total taxable value of up to 400,000 euros, subject to geographic conditions set out in the bill. The suspension of VAT on property and the related tax incentive run to the end of 2027. Owners could correct their property details in the E9 form for 2014 to 2026 without the extra tax, interest and fines the changes would trigger, a option tied to a new Property Ownership and Management Register (ΜΙΔΑ) with a deadline running to the end of the fourth month after it opens, extendable. The prime minister announced in a radio interview on 3 November that VAT on period products would fall from 24% to 13%, and the bill sets that cut for 1 January 2027, alongside the same cut for adult incontinence pants.

Birth allowance and back payments

The birth allowance rises for families whose child was born from 1 January 2026, including mothers who became large families through that birth. The new scale pays 2,400 euros for a first child in two instalments of 1,200 euros, and 2,700 euros for a second child in two of 1,350 euros. A third child receives 3,000 euros in two instalments of 1,500 euros, while the fourth reaches 4,500 euros, the fifth 5,500 euros, the sixth 6,500 euros and the seventh 7,500 euros. Under article 22, the difference for births since the start of 2026 is credited automatically to beneficiaries by 31 December 2026, without a new application.

First child2,400

Second child2,700

Third child3,000

Fourth child4,500

Fifth child5,500

Sixth child6,500

Seventh child7,500

First child

2400 euros

Second child

2700 euros

Third child

3000 euros

Fourth child

4500 euros

Fifth child

5500 euros

Sixth child

6500 euros

Seventh child

7500 euros

Data from the article text

Children's savings accounts in Parliament

The Finance committee passed the bill with the votes of New Democracy, while KKE, SYRIZA and Plefsi Eleftherias voted against. PASOK-KINAL, Greek Solution and Niki reserved their positions until the plenary debate, which may run over two sessions if needed. From 2027 the Individual Investment Account for Minors targets children under two born in 2025 and 2026, with the state matching each euro paid in up to 1,200 euros a year. Contributions from any individual or legal entity are capped at 10,000 euros a year, and the state contribution is paid monthly on contributions up to 100 euros a month. Funds must go into eligible instruments such as bonds, mutual funds and shares, with high-risk and complex products excluded, and stay locked until the beneficiary comes of age.