Have 4 Kids, Pay Less Tax: This Country Is Rewarding Big Families

Last Updated:September 09, 2025, 13:33 IST

The relief package, effective from 2026, cuts all income tax rates by 2%, while low-income families with four children will enjoy a zero-tax rate

Under the new policy, settlements with populations under 1,500 will also be exempt from tax. (Representative/Shutterstock)

In countries like India and China, with populations around 1.4 billion, the situation contrasts sharply with European nations, where ageing populations have led governments to offer incentives to boost birth rates.

A notable example is Greece, a South Eastern European country grappling with a declining population. The Greek government is providing tax relief to families with four children. Recently, they announced a €1.6 billion relief plan (approximately Rs 1.4 billion) aimed at addressing the issues of a shrinking population and a rapidly ageing society.

Prime Minister Kyriakos Mitsotakis described it as the most significant tax reform in fifty years, aimed at financially supporting parents on the birth of children and tackling recent economic challenges.

Zero Tax For Families With Four Children

This relief package, set to be implemented from 2026, includes a 2 percent reduction in all income tax rates. Notably, low-income families with four children will benefit from a zero-tax rate.

The government reports that Greece’s birth rate is the lowest in Europe, with only 1.4 children per woman. If this trend continues, by 2050, the country’s population could decline to less than 8 million, with 36 percent of the population being elderly. Population figures indicate that Greece is on the brink of becoming Europe’s oldest country.

Rules To Take Effect From 2026

These rules will be implemented in Greece starting 2026. Under the new policy, settlements with populations under 1,500 will also be exempt from tax.

According to The Guardian, Prime Minister Kyriakos Mitsotakis stated, “If you do not have any children, the cost of living is different compared to living with two or three children. As a country, we need to find a way to reward citizens who choose to have more children.”

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