Budget 2026: Total state tax revenues increase by €2.6 billion

The 2026 taxation breaks, the Greek authorities … volition person much taxation gross successful 2025! Compared to 2025 receipts, the Draft Budget that Kyriakos Pierrakakis submitted to the Parliament yesterday predicts that for 2026 that from the reductions successful ENTIA and income taxes, the nationalist volition suffer conscionable 176 cardinal euros!

The state’s full taxation revenues are adjacent projected to summation by €2.649 cardinal oregon 3.7% compared to 2025, arsenic they are expected to scope €73.527 billion.

Based connected the draught itself, however, the oxymoron (seemingly astatine least) is interpreted by the government’s economical staff, mainly, by the further simplification of taxation evasion, higher Growth compared to this twelvemonth and rising incomes and depletion successful 2026.

Based connected these assumptions, the wide people of the Draft Project envisages that a superior surplus of €7.292 cardinal volition beryllium achieved successful 2026, reaching 2.8% of GDP, but successful a twelvemonth where, the aforesaid fund volition springiness taxation cuts and caller benefits, the full outgo of which volition magnitude to 1.76 cardinal euros.

But the aforesaid improvement is observed this year: successful fact, successful 2025, the superior surplus is expected to beryllium adjacent larger (3.6% of GDP), chiefly owed to an excess of 1.675 cardinal euros (or 2.4%) successful authorities fund revenues from taxes implicit the people acceptable past twelvemonth successful the 2025 budget. This is contempt the information that, successful the mediate of the year, 1.5 cardinal euros successful other benefits and 1.2 cardinal euros successful taxation cuts were announced, which were not foreseen erstwhile the fund was passed past twelvemonth successful December.

As the Preliminary Draft of the new budget shows, the surplus and gross overruns contempt the reductions are attributed to:

(a) The simplification of taxation evasion, combined with the summation successful physics transactions, which chiefly affects VAT revenues (an summation of €857 cardinal successful 2025 compared to the budget)

(b) The summation successful fees, which chiefly affects idiosyncratic income taxation revenues (an summation of EUR 633 cardinal compared to the budget). It should beryllium noted that compared to the fund projections, determination is simply a important summation successful wages for babelike labour, estimated astatine 6.3% successful 2025 compared to 3.4%, which was the applicable forecast.

c) persistent inflation, but besides the maturation of existent backstage consumption, which – contempt the accuracy – is expected to scope 1.9% successful 2025, against a forecast of 1.6%. Contributing to this are tourism receipts, which roseate importantly by 12.5% successful the archetypal 7 months of 2025 compared to 2024, resulting successful a affirmative interaction connected taxation revenues.

What the 2026… “bill” predicts

With this data, however, the concern ministry has forecast continued gross maturation successful 2026, chiefly from VAT and taxes connected firm profits.

Specifically, successful much detail, according to the draught of the caller authorities budget:

1) Taxes connected goods and services: Revenues from taxes connected goods and services are projected to summation by EUR 1.747 cardinal oregon 4.5% compared to 2025, reaching EUR 40.818 billion.

In particular:

— VAT revenues are expected to scope 29.129 cardinal euros, up 1.599 cardinal euros compared to this year. This summation is linked to ongoing measures against VAT evasion, projected maturation successful backstage depletion and successful 2026 of 1.7%, but – to a lesser grade than successful 2025 – comparatively stubborn inflation, which is projected to autumn to 2.2% successful 2026, from 2.6% this year.

–tax revenues are projected astatine €7.447 billion, up marginally by €53 cardinal compared to 2025. As Excise Taxes are imposed connected the measurement of income careless of the terms level, this precise tiny increase, however, indicates a restraint successful depletion astatine this year’s levels, with respect to beverages, cigarettes, fuels and vigor connected which excise taxes are imposed.

2) Taxes and duties connected imports: from taxes and duties connected imports, revenues of €427 cardinal are foreseen, up somewhat by €27 cardinal compared to this year.

3)Real property taxes – ENFIA: owed to the 50% simplification (until the last abolition) of ENFIA successful much than 12,000 settlements successful the country, revenues from regular existent property taxes are expected to alteration by EUR 83 cardinal compared to 2025. They volition not transcend a full of EUR 2.328 billion.

4) Other taxes connected production: revenues of EUR 659 cardinal are projected from different taxes connected production, up by EUR 164 cardinal compared to the 2025 estimate, chiefly owed to the proviso for the postulation of EUR 200 cardinal from the Greek State’s information successful the profits of the Hellenic Central Bank.

5)Income tax: the changes successful the taxation standard pb to taxation reductions of EUR 1.218 cardinal for households – individuals. Despite this reduction, however, successful 2026, idiosyncratic income taxation revenues are projected to autumn by lone 93 (!) cardinal euros compared to 2025. This is attributed to the projected summation successful wages for babelike work, pensions and the expected caller summation successful the minimum wage.

However, full taxation revenues are expected to summation by EUR 742 cardinal oregon 2.9% compared to 2025, amounting to EUR 26.710 billion, owed to the summation successful income taxation revenues from ineligible entities (companies) projected to magnitude to EUR 8.659 billion, up EUR 859 cardinal compared to 2025, owed to the estimated accrued profits of companies successful the existent taxation year, which volition beryllium declared successful 2026.

6) Capital Taxes: are projected to beryllium 250 cardinal euros, with nary alteration compared to 2025.

7) Other existent taxes: expected to magnitude to €2.334 billion, up €52 cardinal compared to 2025.

8) Social contributions: societal publication revenues are projected to magnitude to EUR 61 million, with nary alteration compared to 2025.

9) Transfers from EU: transfer revenues are expected to magnitude to EUR 10.941 billion, up EUR 1.695 cardinal compared to 2025, chiefly owed to an summation successful gross from the CDF of EUR 1.657 billion, aft ESA adjustment.

10) Sales of goods and services: revenues of EUR 1.097 cardinal are projected, down by EUR 116 cardinal compared to 2025.

11)Other existent revenue: Other existent gross is projected astatine €2.222 billion, down €769 cardinal compared to 2025, chiefly owed to a €114 cardinal alteration successful gross from dividends from nationalist assemblage entities. EUR 114 million, the antagonistic interaction of EUR 305 cardinal successful advances from European programmes, EUR 95 cardinal successful reduced reimbursements from NPAs for the execution of concern projects and EUR 194 cardinal successful reduced involvement connected deposits received by the Greek State.

12) Sales of fixed assets: Revenues from income of fixed assets are projected to beryllium EUR 55 million, up EUR 24 cardinal compared to this year.

Four percent much than successful the erstwhile year, up from 24% successful 2007.

Four times much than successful the erstwhile year, compared to the erstwhile year.