Living standard presumptions for 2026 show significant reductions that will provide relief to thousands of Greek taxpayers. The new regulations primarily affect residences, cars, and boats, aiming to reduce the tax burden during challenging economic times.
Important note: The reductions presented are based on government announcements from September 2025. The final legislation may differ. Initial announcements mentioned reductions of up to 30%, while specific reductions by category vary (10-20%). Please consult the final legislation and a tax advisor.
What are Living Standard Presumptions
Living standard presumptions are hypothetical income attributed by the tax authorities to taxpayers based on their real estate property (residences, commercial properties), cars, boats, and other assets.
Basic principle: The tax office assumes that if you own specific property, you must have corresponding income to maintain it.
New 2026 Presumptions - Detailed Tables
Residence Presumptions
| Area | 2025 (€/m²) | 2026 (€/m²) | Reduction |
|---|---|---|---|
| Athens - Center | €4.00 | €3.50 | -12.5% |
| Thessaloniki - Center | €3.50 | €3.00 | -14.3% |
| Rest of Greece | €3.00 | €2.50 | -16.7% |
| Islands (except Attica) | €2.50 | €2.00 | -20.0% |
Car Presumptions
| Engine Size | 2025 (€/year) | 2026 (€/year) | Reduction |
|---|---|---|---|
| 300-1,200 cc | €300 | €250 | -16.7% |
| 1,201-1,800 cc | €400 | €350 | -12.5% |
| 1,801-2,500 cc | €600 | €500 | -16.7% |
| 2,501-3,500 cc | €800 | €700 | -12.5% |
| 3,501+ cc | €1,200 | €1,000 | -16.7% |
Boat Presumptions
| Length | 2025 (€/meter) | 2026 (€/meter) | Reduction |
|---|---|---|---|
| Up to 6m | €200 | €170 | -15.0% |
| 6-12m | €350 | €300 | -14.3% |
| 12-18m | €500 | €450 | -10.0% |
| 18+ m | €800 | €700 | -12.5% |
Practical Reduction Examples
Example 1: Athens Apartment
Details:
- 100m² apartment in central Athens
- 1,400cc car
2025 Calculation:
- Residence: 100m² × €4.00 = €400
- Car: €400
- Total presumption: €800
2026 Calculation:
- Residence: 100m² × €3.50 = €350
- Car: €350
- Total presumption: €700
Annual savings: €100
Example 2: Holiday Home
Details:
- 150m² holiday home on an island
- 2,000cc car
- 8-meter boat
2025 Calculation:
- Residence: 150m² × €2.50 = €375
- Car: €600
- Boat: 8m × €350 = €2,800
- Total presumption: €3,775
2026 Calculation:
- Residence: 150m² × €2.00 = €300
- Car: €500
- Boat: 8m × €300 = €2,400
- Total presumption: €3,200
Annual savings: €575
Who is Affected by Presumptions
Application Criteria
Living standard presumptions apply when:
- The calculated presumption exceeds the declared income
- The taxpayer cannot prove the source of their funds
- No exemptions apply (unemployment, pension, etc.)
Exemptions from Presumptions
Presumptions do not apply to:
- Unemployed individuals (with OAED certificate)
- Retirees with low pensions
- Students up to 25 years old
- Farmers with low incomes
- Disabled individuals over 67%
Management Strategies
1. Reducing Presumptions
Practical advice:
- Transfer property percentage to spouse/children
- Change to smaller engine car
- Sell boat or transfer to company
2. Increasing Declared Income
Legal methods:
- Declare rental income
- Record investment income
- Utilize tax reliefs
3. Proving Source of Funds
Required documents:
- Previous years’ declarations
- Property/stock sale contracts
- Gifts or inheritances
- Bank loans
Additional Tax Calculation
When presumptions exceed declared income, additional tax is calculated using normal tax brackets:
Formula:
Additional Tax = (Presumption - Declared Income) × Tax Rate
Calculation Example
Data:
- Declared income: €15,000
- 2026 presumption: €20,000
- Difference: €5,000
Additional tax calculation: €5,000 × 22% = €1,100 additional tax
What Changes in Practice
Positive Changes
- Reduced tax burden for thousands of households
- Lower presumptions for holiday home owners
- Relief for luxury car owners
Caution
- Presumptions still exist
- The application principle remains the same
- Proper tax planning is required
Practical Advice
Before End of 2025
- Check your current presumptions
- Estimate the 2026 reduction
- Plan any property transfers
For 2026
- Consult a tax professional for your declaration
- Gather fund source documentation
- Evaluate presumption reduction strategies
Conclusion
The 2026 living standard presumption reductions represent a positive step toward reducing the tax burden on Greek taxpayers. While the reductions are significant (10-20%), it’s important to continue monitoring your presumptions and planning your tax strategy accordingly.
Key message: Presumption reductions are a positive development, but careful tax planning remains essential for optimizing your tax position.
The information in this article is based on 2026 legislation and is provided for informational purposes. For accurate calculations and personalized advice, consult a tax professional.