Greece will open applications for the third phase of its state-subsidized housing loan program, My Home 3, towards the end of December, Alternate Economy Minister Nikos Papathanasis announced on September 10.
The expanded scheme aims to reach more than 15,000 beneficiaries by raising the upper age limit for applicants from 50 to 55 and increasing the income thresholds for families with children.
The My Home initiative is a government policy designed to help citizens acquire their first property amid a severe housing crisis. Greece has experienced a sharp surge in property prices and rents, driven by a halt in new construction during its decade-long financial crisis and a subsequent boom in short-term tourist rentals.
Under the scheme, the Greek state subsidizes a significant portion of the loan's interest rate. This reduces monthly mortgage payments, making homeownership more accessible to middle- and lower-income households who have been priced out of the private market.
Speaking to the state broadcaster ERT, Papathanasis detailed the revised eligibility criteria. He said the income limit would increase by 7,000 euros for each child. This means a family of four earning up to 49,000 euros, or a family of five earning up to 56,000 euros, will now qualify for the subsidized loans.
The program will also cover more expensive properties. The maximum permitted value of a home purchased through the scheme will rise from 250,000 euros to 300,000 euros. Consequently, the maximum loan amount available to buyers will increase from 190,000 euros to 230,000 euros.
Papathanasis said the government was running multiple initiatives to address the housing shortage, noting that a separate state subsidy program for domestic renovations is also currently active.
Support for small businesses and freelancers
Alongside the housing measures, the government plans to introduce new support programs for small and medium-sized enterprises starting in January, backed by 5 billion euros redirected from the European Union's Recovery and Resilience Facility.
The EU Recovery Fund helps member states rebuild their economies after the COVID-19 pandemic, with Greece using a substantial portion of its allocation to fund business development and the green transition.
Papathanasis said the upcoming initiatives would include a dedicated financing tool offering loans to smaller businesses at an exceptionally low interest rate of 0.35 percent.
The January rollout will also feature direct subsidies for the purchase of new taxis. Drivers will be eligible for a state grant of 20,000 euros, which rises to 29,000 euros for people with disabilities.
Greece has been pushing to modernize its vehicle fleet, which ranks among the oldest in the European Union. Subsidies for replacing older taxis with newer models align with national environmental targets and efforts to improve urban air quality.
The alternate minister also addressed recent, controversial changes to the taxation of freelancers and self-employed workers. He acknowledged that these professionals had not yet felt the benefits of the government's broader tax reforms, unlike salaried employees who saw changes to their tax rates in January.
Greece recently overhauled how it taxes self-employed workers to combat tax evasion, introducing an imputed minimum income system. Freelancers are now taxed on a presumed minimum baseline, a move that prompted protests from professional associations.
Papathanasis said freelancers would observe a real reduction in their tax burden for the 2027 tax year. He added that the state was reducing the required advance tax payment by five percentage points, describing this as the maximum reduction the national economy could currently withstand.
Addressing the broader economic outlook, the minister acknowledged that high consumer prices were eroding household incomes and that the country had a long way to go to resolve the issue.
However, he argued that increasing disposable income was a primary solution to the cost-of-living crisis. He said that as unemployment continues to fall, salaries will increase and new jobs will be created across the economy.
