Prime Minister Kyriakos Mitsotakis has described the measures announced at the 90th Thessaloniki International Fair (TIF) as a “pact for progress and prosperity,” outlining a wide ranging package of tax cuts, income support and measures targeting households, businesses and workers.
The package includes measures for civil servants, pensioners, farmers, families, self employed professionals, businesses and private sector employees, as well as housing and electricity costs.
Civil Servants
Civil servants will receive a Christmas bonus of €500 gross from December 2027.
Monthly salary increases of €80 gross will also be introduced, with the increases reaching their full level by January 2028.
Pensioners
From 2026, all pensioners aged over 65 will receive a permanent annual support payment of €400 net.
Farmers
From 2026, farmers will pay no income tax on earnings of up to €20,000 under the announced measures.
Families
A new “savings pot for the new generation” will allow the state to match money deposited by parents, up to €1,200 per year, until their children reach adulthood.
The matching limit will increase by 10% every five years.
From 2027, families with three children will pay no income tax on incomes of up to €20,000.
The government will also increase the €1,000 birth allowance for each additional child in families with four or more children.
Self Employed Professionals
The advance income tax payment rate will be reduced from 55% to 50% from the 2027 tax year.
For taxpayers who comply with their tax obligations, presumptive income assessments will be reduced, with related surcharges waived from 2026.
Presumptive income assessments will also be reduced by 50% in settlements with fewer than 2,000 residents, as well as in settlements with fewer than 2,200 residents in Western Macedonia.
Businesses
Businesses replacing equipment will benefit from accelerated depreciation, with the depreciation period reduced from 10 years to six.
A total of €1.5 billion from the Recovery and Resilience Facility will be transferred to the Development Bank to support small and medium sized enterprises.
Advance income tax payments will be reduced by five percentage points each year from the 2028 tax year until the rate reaches 50%.
The business tax will be abolished in the regions from 2027.
In Attica, the tax will be reduced by 50% in 2028 before being fully abolished in 2029.
Housing
The government announced a €2 billion “My Home 3” housing programme.
The ENFIA property tax will be abolished from 2027 for properties in settlements with up to 2,000 residents, with the threshold rising to 2,200 residents in Western Macedonia.
The property transfer tax for home purchases by citizens from outside the European Union will increase from 3% to 15%.
Private Sector Employees
The minimum wage is set to rise to €1,000 by January 2028.
Employees will also benefit from a further 0.5 percentage point reduction in social security contributions from April 2027.
Electricity Costs
Wholesale electricity prices are targeted for a gradual 30% reduction between 2027 and 2029.
Households will also see a 50% reduction in Public Service Obligation charges on electricity bills from January 2027.
Social Policy
Disability benefits will be indexed from 2027.
The measure is expected to benefit approximately 218,000 people, with an average annual increase of €220.
Mitsotakis said the package is designed to provide broad support while maintaining fiscal discipline, describing the measures as part of the government’s longer term plan to strengthen household incomes, reduce taxes and support economic growth.
