Government to use tax breaks and other financial incentives to encourage people to have more children
Greece has announced drastic measures, including tax breaks and other financial incentives, to address a population decline that is on course to make it the oldest nation in Europe.
The prime minister said the €1.6bn (£1.4bn) relief package had been dictated by one of the biggest challenges facing the Mediterranean nation : a demographic crisis of unprecedented scale.
“We know that the cost of living is one thing if you don’t have a child and another if you have two or three children,” Kyriakos Mitsotakis said on Sunday after announcing the policies. “So, as a state we should find a way to reward our citizens who make the choice [of having children].”
The measures, which range from a 2 percentage point reduction for all tax brackets to a zero rate for low-income families with four children, will be rolled out in 2026, said Mitsotakis. He called the package the boldest tax reform enforced in Greece in more than 50 years.
