Prime Minister Kyriakos Mitsotakis is set to unveil a new financial package at the 88th Thessaloniki International Fair, funded by a 3 billion euro allocation designated for increased state budget expenditures in 2025 under the European Commission’s new fiscal rules.
This smaller package will focus on specific social groups and address key issues such as demographics and housing, along with revising imputed income taxation for self-employed individuals.
In response to the housing crisis, the government is considering lowering high tax rates on rental income and introducing property values in 505 areas to prevent further price increases.
The Ministry of Finance aims to stabilize the housing market by encouraging property owners to reduce rents and make more homes available.
The 3 billion euro fund will also support measures to address demographic challenges, including expanding benefits for families with three or more children, offering tax incentives to new families, and providing support for young couples to encourage the birth of their first and second child.
Additional 2025 plans include reducing social security contributions by 0.5%, eliminating the business tax for professionals, reinstating the Special Consumption Tax refund for farmers, increasing the student housing allowance, and suspending VAT on construction.
A 400 million euro allocation will fund the third annual pension increase, expected to average 2.5% to 3%, depending on GDP growth and inflation.
The package will also address rising energy costs and the impacts of ongoing conflicts in Ukraine and the Middle East, with potential new measures to combat high supermarket prices.
Germany will be the “Honored Country” at the 88th Thessaloniki International Fair (TIF) that will take place September 7-15, 2024
