Income Tax Reform

Poland’s Proposed Zero Income Tax for Parents: A Deep Dive

Poland’s president recently enacted a law eliminating personal income tax (PIT) for parents with at least two children, a measure designed to bolster family finances and stimulate the economy. This reform, available to families earning up to 140,000 zloty annually, is expected to provide an average of 1,000 zloty monthly relief per family. However, tax experts caution that the financial benefits will primarily favor higher-income families. While public consultations showed significant support for the initiative, the actual impact and efficacy of the “tax armour” reform, which also includes other tax adjustments, will be visible in the 2026 tax returns.

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Greece Announces Tax Cuts and Incentives: No Property Tax in Rural Areas, Income Tax Breaks for Large Families

In a significant move, Greek Prime Minister Kyriakos Mitsotakis has revealed a €1.6 billion reform of the income tax system. This reform aims to strengthen the middle class through substantial cuts in income tax rates. Notably, families with four or more children will be exempt from income taxes on the first €20,000 of annual income. The policy is designed to combat Greece’s low birthrate.

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