Package of €2.2 billion unveiled at TIF to benefit almost all groups, finance ministry sources say

National economy and finance ministry sources on Sunday listed yet more categories of beneficiaries that stand to benefit from the € 2.2-billion package of 17 measures announced by Prime Minister Kyriakos Mitsotakis at the 90th Thessaloniki International Fair (TIF), providing clarifications and further details.

According to the sources, the package impacts almost every professional and social group: the self-employed, businesses, farmers, employees, public-sector workers, pensioners, families and young people. It also includes specific provisions for particular categories of beneficiaries, such as taxi operators and families with children.

The measures form the core of a ‘Progress and Prosperity Pact’ extending to 2030, which they say “links growth with income and economic progress with social cohesion” –  in other words, connecting economic progress with improvements in citizens’ everyday lives, with more growth leading to higher disposable income, stronger families and more meaningful support for the regions.
The package combines tax and contribution cuts, increases in wages and pensions, incentives for entrepreneurship and investment, new tools for the younger generation, and targeted measures for families, the regions and housing.

1. SELF-EMPLOYED – ABOLITION OF PRESUMPTIVE INCOME ASSESSMENT

From the 2026 tax year, most of the presumptive income assessment will effectively be abolished for compliant self-employed professionals who meet the stipulated criteria, estimated to cover more than 90% of the group.
The minimum basis will remain the statutory minimum wage, including seniority increments, but two surcharges – 10% of annual payroll costs and the 5% of the difference between turnover and the average turnover for the relevant business activity code- will be abolished.
At the same time, the advance tax payment for sole proprietorships will be reduced from 55% to 50% from the 2027 tax year. For settlements with up to 2,000 residents, compared with 1,500 currently, presumptive assessments will be reduced by 50%.

ADDITIONAL MEASURES FOR TAXI OPERATORS

For taxi operators, a specific adjustment to the presumptive assessment is being introduced so that it reflects the actual ownership share of the vehicle. The assessment will be reduced in proportion to the co-ownership share. For example, if a professional owns 50% of a taxi, the presumptive assessment will be reduced by 50%. This means that someone who owns part of a taxi will no longer be taxed as though they operated the entire vehicle.
At the same time, minors up to the age of 18 who hold a taxi licence will be exempt from the presumptive assessment. Such cases generally arise through inheritance following the death of a parent.

BUSINESSES – INVESTMENT
2. ABOLITION OF THE BUSINESS TAX

The full abolition of the business tax for legal entities is beginning. In 2027, it will be abolished in the regions and Thessaloniki.
In 2028, it will be reduced by 50% in Attica, and in 2029 it will be abolished nationwide. For example, a business headquartered in Thessaloniki with one branch, which currently pays € 1,600, will pay no business tax from 2027.

3. REDUCTION IN ADVANCE TAX PAYMENT FROM 80% TO 50%

From the 2028 tax year, the advance tax payment for legal entities will be gradually reduced by five percentage points each year.
From the current 80%, the advance payment will be reduced progressively: 75% → 70% → 65% → 60% → 55% → 50%.
The advance tax payment for businesses will therefore eventually be brought into line with that for sole proprietorships.

4. FASTER DEPRECIATION FOR NEW INVESTMENTS

Investments in new machinery and equipment will be depreciated over six years instead of 10 for expenditure incurred from 1 January 2027.
Depreciation will be applied at rates of 10%-10%-15%-15%-25%-25%, providing businesses with a stronger tax incentive to undertake new productive investments.

5. € 5 BILLION IN NEW FINANCING FOR SMALL AND MEDIUM-SIZED BUSINESSES

Two new financing instruments will be created through the Hellenic Development Bank. With € 1.5 billion from Recovery Fund loans and leverage from the banking system, a total of € 5 billion will be mobilised for small and medium-sized enterprises.
The funds will finance investment and liquidity needs either at lower interest rates or through guarantees that facilitate access to bank lending.

TAX RATE REDUCTIONS
6. ZERO TAX FOR FARMERS ON INCOME UP TO € 20,000

From the 2026 tax year, the tax rate on income up to € 20,000 will be reduced to zero for full-time farmers. A tax reduction will benefit 47,091 of the country’s 245,907 farmers, while for a farmer without children the tax-free threshold will rise from € 8,633 to € 22,204. The maximum benefit will reach € 2,900.

7. ZERO TAX RATE FOR FAMILIES WITH THREE CHILDREN ON INCOME UP TO € 20,000

The tax rate on income up to € 20,000 will be reduced to zero for families with three children. The tax-free threshold will rise from € 14,364 to € 25,364, benefiting 86,927 families with three children, including 33,894 self-employed professionals.

PUBLIC-SECTOR EMPLOYEES
8. € 500 CHRISTMAS BONUS AND NEW PAY RISES

From December 2027, a € 500 gross Christmas bonus will be introduced for public-sector employees. At the same time, basic public-sector salaries will increase both in April 2027 and January 2028, following increases in the minimum wage. The total increase by January 2028 will reach € 80 gross per month.
In addition, public-sector employees with three children will benefit from the zero tax rate on income up to € 20,000, while teachers, doctors and nurses serving in the regions will receive a reimbursement equivalent to two months’ rent per year.

WAGES – WORKERS
9. € 1,000 MINIMUM WAGE

The minimum wage will rise from the current € 920 to € 1,000 by January 2028 and to € 1,300 including seniority increments. The increases will be introduced in two stages, in April 2027 and January 2028.
Compared with € 650 in 2021, the overall increase will reach 54%.

10. FURTHER REDUCTION IN SOCIAL SECURITY CONTRIBUTIONS

From April 2027, social security contributions in the private sector will be reduced by 0.5 percentage points. The entire reduction will apply to employee contributions and will therefore translate into higher take-home pay.

PENSIONERS
11. PERMANENT € 400 PAYMENT FOR ALL PENSIONERS OVER 65

The permanent November payment will rise from € 300 to € 400 net and will be extended to all pensioners over the age of 65.
A further 270,000 beneficiaries will be added, bringing the total number of beneficiaries to 2.2 million.
The € 400 payment will also be received by people over 60 who receive only a survivor’s pension, people with disabilities and uninsured elderly people.
At the same time, pensions will increase on the basis of GDP and inflation, without offsetting the increase against the personal difference.

FAMILY – YOUNGER GENERATION – SOCIAL POLICY
12. A ‘SAVINGS POT’ FOR THE YOUNGER GENERATION

A special investment account will be created which parents can open within the first two years after a child’s birth.
For every euro contributed by a parent, the state will contribute one euro, up to € 1,200 a year, until the child reaches adulthood. The maximum annual contribution of € 1,200 will increase by 10% every five years.
With maximum contributions, € 49,304 will have been accumulated over 18 years, of which € 24,652 will have been contributed by the state.
With a 3% return, the capital could reach € 64,109, while at a 5% return it could reach € 77,062.

13. DISABILITY BENEFITS – NURSERIES – LARGE FAMILIES

Disability benefits that are currently not adjusted will be indexed, benefiting 218,000 people with disabilities.
The value of vouchers for nurseries will increase by 10%, while the income thresholds will rise by € 2,000. For families with three children, the income criteria will be abolished.
The birth allowance for large families will increase by an additional € 1,000 for each child. The daily student food allowance will also rise from € 2 to € 3, and in border and island regions from € 2.45 to € 3.50.

HOUSING
14. NEW “ MY HOME III” PROGRAMME – € 2BN

A new “ My Home III” programme, worth a total of € 2 billion, will be created to finance the purchase of a first home.
The eligibility criteria will be significantly expanded:
Age: up to 55, from 50.
Property value: up to € 300,000, from € 250,000.
Maximum loan: up to € 230,000, from € 190,000.
Financing: may cover up to 90% of the property’s value.
Family income threshold: the allowance per child will rise to € 7,000, from € 5,000.
The permitted floor area will also be increased for families with more than four children.

15. MORE HOMES FOR LONG-TERM RENTAL

The following measures will be extended:
the three-year income tax exemption for vacant properties brought into the long-term rental market;
the tax deduction for building upgrade costs;
the VAT exemption for new-build properties.
The restriction on new short-term rentals will also be extended through 2027 in Athens’ three municipal districts and Thessaloniki’s First Municipal District.

16. ABOLITION OF ENFIA PROPERTY TAX IN SMALL SETTLEMENTS

From 2027, ENFIA property tax will be abolished in settlements with up to 2,000 residents, up from the current threshold of 1,500, and in settlements with up to 2,200 residents in Western Macedonia.
The extension will cover a further 131 settlements and approximately 62,000 additional property owners.
Overall, the abolition of ENFIA will cover 12,855 settlements.

17. 15% TRANSFER TAX ON HOME PURCHASES BY NON-EU CITIZENS

From 1 January 2027, the transfer tax on residential property purchases by citizens of third countries outside the European Union will increase from 3% to 15%.
The measure applies to residential properties – not commercial premises, plots of land or other types of property – and aims to curb additional external demand that is putting pressure on house prices.

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