Greece cuts taxes for young workers, large families

Special provisions for young employees and families in Greece lead to major benefits, such as eliminating income tax for workers up to 25 years old and those with four or more children, as well as savings of up to two salaries, thanks to reduced deductions for couples with children.

The aim is to increase household income, especially for low- and middle-income earners, CE Report quotes ANA-MPA.

Approximately two million private-sector employees will see their first salary increases on Friday, thanks to the tax reform announced in September at the Thessaloniki International Fair, with additional significant tax breaks for young workers and families with children, equivalent to even one or two additional salaries on an annual basis for couples with three or four and more children.

The January payroll will for the first time reflect the cut in taxes withheld, which results from the horizontal reduction of rates by at least two percentage points for all incomes between 10,000 and 40,000 euros. The aim of the reform is to increase average income, especially after a period of inflationary pressures throughout the developed world, with an emphasis on the middle and lower classes.

In practice, this means that for childless people with earnings of 10,000 to 20,000 euros, the tax rate drops from this month to 20%, compared to 22% that was in effect until last year. For incomes between 20,000 and 30,000 euros, taxation drops to 26% from 28%, while for earnings between 30,000 and 40,000 euros, the tax is reduced to 34%, instead of 36% applied last year.