Prime Minister Kyriakos Mitsotakis described the package of measures announced at the 90th Thessaloniki International Fair as “a pact for progress and prosperity.”
In a social media post, the Prime Minister summarised the main measures included in his address.
Civil servants, pensioners and farmers
Civil servants will receive a gross Christmas bonus of €500 from December 2027, while new monthly salary increases of €80 gross will be introduced by January 2028.
Pensioners over the age of 65 will receive permanent annual support of €400 net from 2026.
For farmers, income tax will be abolished on earnings of up to €20,000 from 2026.
Support for families
The measures for families include the introduction of a “savings pot for the new generation.” Under the scheme, the state will match parents’ deposits up to €1,200 per year until their children reach adulthood. The limit will increase by 10% every five years.
Families with three children will pay no income tax on earnings of up to €20,000 from 2027. The €1,000 birth allowance will also increase for each additional child in families with four or more children.
Self-employed workers and businesses
For self-employed workers, the advance income tax payment will be reduced from 55% to 50% from the 2027 tax year.
Presumptive income assessments will be reduced for compliant taxpayers, with related surcharges waived from 2026. A 50% reduction in presumptive income assessments will also apply to settlements with fewer than 2,000 inhabitants and to settlements with fewer than 2,200 inhabitants in Western Macedonia.
Businesses replacing equipment will benefit from accelerated depreciation, with the depreciation period reduced from six years to ten years.
In addition, €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 for businesses will be reduced by five percentage points annually from the 2028 tax year until the rate reaches 50%.
The business tax will be abolished in the regions from 2027. In Attica, it will be reduced by 50% in 2028 and abolished completely in 2029.
Housing and employment
The government will launch the €2 billion “My Home 3” housing programme.
The ENFIA property tax will be abolished from 2027 in settlements with fewer than 2,000 inhabitants, as well as in settlements with fewer than 2,200 inhabitants in Western Macedonia.
The property transfer tax on home purchases by citizens from outside the European Union will increase from 3% to 15%.
For private-sector employees, the minimum wage will rise to €1,000 by January 2028. Social security contributions paid by employees will be reduced by a further 0.5 percentage points from April 2027.
Electricity and social policy
Wholesale electricity prices will be reduced gradually by 30% between 2027 and 2029. Public Service Obligation charges on household electricity bills will also be reduced by 50% from January 2027.
Disability benefits will be indexed from 2027. The measure is expected to benefit 218,000 people, with an average annual increase of €220.
