Greek Government Plans New Tax Cuts to Stimulate Rental Market

• 15 May, 25

According to authoritative Greek media sources, the Ministry of Finance is drafting a tax reduction scheme targeting individual landlords, aiming to revitalize the rental market by lowering the tax rates on rental income. Finance Minister Kostis Hatzidakis (note: the original mentions “Πιερακάκης,” possibly a misattribution or newer minister) confirmed that the new policy will restructure the current rental income tax brackets, with detailed plans expected to be officially announced by Prime Minister Kyriakos Mitsotakis during this year’s Thessaloniki International Fair.

Core Reforms:

• Annual rental income ≤ €5,000: Proposed tax rate reduction from 15% to 5%-7%
• Annual rental income between €12,001 and €35,000: Introduction of a new 20% intermediate tax bracket under consideration (current system has only 15% and 35% brackets)

Estimated Tax Savings (based on annual rental income):

• €5,000: Current tax €750 → New tax €250 (€500 reduction)
• €12,000: €1,800 → €1,300 (first €5,000 at 5%, remaining €7,000 at 15%)
• €15,000: €2,850 → €2,350
• €20,000: €4,600 → €4,100

Market Context:

• In 2024, 1,081,634 taxpayers in Greece declared rental income
• Total declared amount: €4.69 billion, averaging €4,300 per person
• Current tax brackets: Up to €5,000: 15%; €5,001–€12,000: 35%; Over €12,000: 45%

If implemented, this reform would become one of the most significant housing tax optimization measures in recent years. It is expected to improve compliance in rental income declarations and reduce the tax burden on low- and middle-income landlords. The Ministry of Finance emphasized that the adjustment aims to balance tax fairness and market vitality, although the exact timeline for implementation is still under discussion.

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