Athens — Greece will roll out a €1.6 billion package of tax cuts and family incentives in 2026 in an effort to slow the country’s shrinking population, Prime Minister Kyriakos Mitsotakis has announced.
Speaking at the Thessaloniki International Fair on Saturday, Mitsotakis said the measures are meant to “lighten the burden on families” and encourage young people to stay in or return to Greece.
What’s in the package
- Tax relief: Cuts across several income brackets.
- Support for families: Zero or reduced income tax for young workers and households with four or more children.
- Help for rural areas: Lower property taxes in remote regions to attract residents.
- Extra aid: Pension top-ups and cost-of-living support for vulnerable groups.
Why it matters
Greece faces one of Europe’s steepest demographic challenges. Births fell to 71,455 in 2023, according to the national statistics authority, and fertility rates remain far below the level needed to sustain the population. Decades of low birth rates and youth emigration have left many villages depopulated and the pension system under strain.
Reactions and concerns
Opposition parties and economists question whether tax breaks alone can shift such deep trends. Demographers note that raising birth rates usually requires broader support — including affordable housing, childcare, and job security.
The €1.6bn cost is also under scrutiny. While modest in budgetary terms, it still needs to be squared with Greece’s commitments to EU fiscal rules.
What’s next
The Finance Ministry is expected to present full legislation later this year. Parliament will debate the package ahead of its planned start in 2026.
For now, the announcement has sparked fresh debate over how Greece can address a demographic decline that many see as one of the country’s most urgent long-term challenges.
