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Greece\u2019s government has unveiled a package of 17 measures targeting taxes, wages, pensions, benefits and housing, with interventions worth \u20ac2.2 billion in 2027.<\/p>\n
The measures, announced at this year\u2019s Thessaloniki International Fair (TIF), will affect millions of citizens as well as businesses. While several measures take effect in 2027, others will roll out over the following years.<\/p>\n
The package includes tax changes for self-employed workers and farmers, new measures for businesses, higher wages and pensions, a Christmas bonus for public servants, support for families and younger people, and new incentives for the housing market.<\/p>\n
Among the most significant measures are changes to the presumptive income system for self-employed workers, a gradual reduction in advance corporate tax payments, an increase in the minimum wage to \u20ac1,000, additional support for pensioners, a new \u201cMy Home III\u201d housing programme and the abolition of property tax (ENFIA) in more small settlements.<\/p>\n
1. Self-employed workers \u2014 changes to presumptive income<\/strong><\/p>\n From the 2026 tax year, the government will effectively abolish most of the presumptive income calculation for compliant self-employed workers who meet the required criteria. The government estimates that more than 90% of self-employed workers meet those criteria.<\/p>\n The minimum taxable base will remain linked to the minimum wage and seniority increments, reflecting the principle that a person running a business should not report less minimum income than an employee earning the minimum wage.<\/p>\n The government will also remove two adjustments that could significantly increase presumptive income:<\/p>\n As a result, compliant professionals will no longer face higher presumptive taxation simply because they employ workers or generate higher turnover than the sector average.<\/p>\n For example, a 15-year-old caf\u00e9 with five employees and annual payroll costs of \u20ac105,000 currently faces presumptive income of \u20ac27,244 and tax of \u20ac4,783. Under the new system, the taxable base falls to \u20ac16,744 and the tax bill to \u20ac2,249.<\/p>\n That represents a \u20ac2,534 saving, or an approximately 53% reduction in tax.<\/p>\n The advance tax payment for sole proprietorships will also fall from 55% to 50% from the 2027 tax year.<\/p>\n For settlements with up to 2,000 residents, compared with the current threshold of 1,500, presumptive living-cost calculations will fall by 50%.<\/p>\n Taxi operators<\/p>\n The government will introduce a specific adjustment for taxi operators so that presumptive income reflects their actual ownership share of the vehicle.<\/p>\n For example, someone who owns 50% of a taxi will see the presumptive amount reduced by 50%.<\/p>\n The measure will also exclude minors up to 18 who hold taxi licences from the presumptive calculation, a situation that can arise following inheritance after a parent\u2019s death.<\/p>\n 2. Abolition of the business levy<\/strong><\/p>\n The government will begin the full abolition of the business levy for legal entities.<\/p>\n From 2027, the levy will disappear in the Greek regions outside Attica and in Thessaloniki. In 2028, it will fall by 50% in Attica before disappearing nationwide in 2029.<\/p>\n A company headquartered in Thessaloniki with one branch that currently pays \u20ac1,600 will therefore pay nothing from 2027.<\/p>\n 3. Advance corporate tax cut from 80% to 50%<\/strong><\/p>\n From the 2028 tax year, companies will see their advance tax payment gradually fall by five percentage points each year.<\/p>\n The rate will decline from the current 80% to:<\/p>\n 75% \u2192 70% \u2192 65% \u2192 60% \u2192 55% \u2192 50%.<\/p>\n The final 50% rate will bring companies into line with sole proprietorships.<\/p>\n 4. Faster depreciation for new investments<\/strong><\/p>\n Businesses will be able to depreciate new machinery and equipment over six years instead of 10 for expenditure incurred from January 1, 2027.<\/p>\n The depreciation schedule will run at 10%, 10%, 15%, 15%, 25% and 25%, giving businesses a stronger tax incentive to make new productive investments.<\/p>\n 5. \u20ac5bn in new financing for small and medium-sized businesses<\/strong><\/p>\n Two new financing instruments will operate through the Hellenic Development Bank.<\/p>\n The government will use \u20ac1.5 billion from Recovery Fund loans and leverage from the banking system to mobilise a total of \u20ac5 billion for small and medium-sized enterprises.<\/p>\n The funding will support investment and liquidity needs through lower-cost borrowing or guarantees designed to improve access to bank financing.<\/p>\n 6. Zero tax for farmers on income up to \u20ac20,000<\/strong><\/p>\n From the 2026 tax year, professional farmers will pay no income tax on earnings up to \u20ac20,000.<\/p>\n Some 47,091 of Greece\u2019s 245,907 farmers will receive a tax reduction. For a farmer without children, the tax-free threshold will rise from \u20ac8,633 to \u20ac22,204.<\/p>\n The maximum annual benefit will reach \u20ac2,900.<\/p>\n A farmer without children earning \u20ac15,000, for example, who currently pays \u20ac1,183 in tax, will pay no income tax under the new system.<\/p>\n 7. Zero tax for families with three children<\/strong><\/p>\n Families with three children will also pay no income tax on the first \u20ac20,000 of income.<\/p>\n The tax-free threshold will rise from \u20ac14,364 to \u20ac25,364, with 86,927 families with three children expected to benefit, including 33,894 self-employed workers.<\/p>\n A salaried worker with three children earning \u20ac20,000 who currently pays \u20ac620 in tax will pay nothing.<\/p>\n Families with three children and higher incomes will also receive a tax reduction because the first \u20ac20,000 will remain tax-free. A family earning \u20ac30,000, for example, will save \u20ac1,800 a year.<\/p>\n 8. \u20ac500 Christmas bonus and new public-sector pay rises<\/strong><\/p>\n From December 2027, public-sector employees will receive a \u20ac500 gross Christmas bonus.<\/p>\n Public-sector basic salaries will also rise in April 2027 and January 2028, following increases in the minimum wage.<\/p>\n The cumulative increase will reach \u20ac80 gross per month by January 2028.<\/p>\n Public servants with three children will additionally benefit from the zero tax rate on income up to \u20ac20,000.<\/p>\n Teachers, doctors and nurses working in regional areas will also receive reimbursement equivalent to two months\u2019 rent each year.<\/p>\n 9. Minimum wage to reach \u20ac1,000<\/strong><\/p>\n The minimum wage will rise from \u20ac920 today to \u20ac1,000 by January 2028, while the rate including three-year seniority increments will reach \u20ac1,300.<\/p>\n The increases will come in two stages, in April 2027 and January 2028.<\/p>\n Compared with the \u20ac650 minimum wage in 2021, the overall increase will reach 54%.<\/p>\n 10. Further reduction in social security contributions<\/strong><\/p>\n From April 2027, private-sector social security contributions will fall by 0.5 percentage points.<\/p>\n The entire reduction will apply to employee contributions, meaning workers will receive the full benefit through higher net income.<\/p>\n 11. \u20ac400 permanent payment for pensioners over 65<\/strong><\/p>\n The permanent November payment will rise from \u20ac300 to \u20ac400 net and expand to all pensioners aged over 65.<\/p>\n The measure will add approximately 270,000 new beneficiaries, bringing the total to 2.2 million.<\/p>\n People over 60 who receive only a survivor\u2019s pension, people with disabilities and uninsured elderly people will also receive the \u20ac400 payment.<\/p>\n Pensions will also continue to rise based on GDP growth and inflation without offsetting increases against the personal difference.<\/p>\n 12. Investment \u201cpiggy bank\u201d for the younger generation<\/strong><\/p>\n Parents will be able to open a special investment account during the first two years after their child\u2019s birth.<\/p>\n For every \u20ac1 contributed by a parent, the state will contribute another \u20ac1, up to \u20ac1,200 per year until the child turns 18.<\/p>\n The \u20ac1,200 annual maximum will increase by 10% every five years.<\/p>\n With maximum contributions, the account will accumulate \u20ac49,304 over 18 years, including \u20ac24,652 contributed by the state.<\/p>\n With a 3% return, the capital could reach \u20ac64,109, while a 5% return could bring it to \u20ac77,062.<\/p>\n 13. Disability benefits, childcare and larger families<\/strong><\/p>\n The government will index-link disability benefits that currently do not receive regular adjustments, affecting around 218,000 people with disabilities.<\/p>\n Childcare voucher funding will rise by 10%, while income thresholds will increase by \u20ac2,000. Families with three children will no longer face income criteria for the programme.<\/p>\n Large families will receive an additional \u20ac1,000 in birth benefits for each child.<\/p>\n The daily student meal allowance will also increase from \u20ac2 to \u20ac3, while students in border and island regions will see it rise from \u20ac2.45 to \u20ac3.50.<\/p>\n 14. New \u201cMy Home III\u201d programme \u2014 \u20ac2bn<\/strong><\/p>\n The government will launch \u201cMy Home III\u201d, a \u20ac2 billion programme to finance first-home purchases.<\/p>\n The eligibility criteria will expand significantly:<\/p>\n The programme will also allow larger properties for families with more than four children.<\/p>\n 15. More homes for long-term rental<\/strong><\/p>\n The government will extend several housing measures, including:<\/p>\n The restriction on new short-term rentals will also remain in place during 2027 in Athens\u2019 three municipal districts and Thessaloniki\u2019s first municipal district.<\/p>\n 16. ENFIA abolished in more small settlements<\/strong><\/p>\n From 2027, ENFIA will be abolished in settlements with up to 2,000 residents, compared with the current 1,500 threshold, and in settlements with up to 2,200 residents in Western Macedonia.<\/p>\n The expansion will cover 131 additional settlements and approximately 62,000 additional property owners.<\/p>\n Overall, the ENFIA exemption will cover 12,855 settlements.<\/p>\n 17. 15% property transfer tax for buyers from third countries<\/strong><\/p>\n From January 1, 2027, the property transfer tax on residential purchases by citizens of countries outside the European Union will rise from 3% to 15%.<\/p>\n The measure applies to residential properties, not commercial premises, plots of land or other types of real estate.<\/p>\n The government says the measure aims to curb additional external demand that puts upward pressure on housing prices.<\/p>\n \u00a0<\/p>\n\n
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