A 30% tax deduction for certain electronic payments is set to be extended into 2027, while the tax-free threshold for voluntary tips will be increased and expanded to cover workers delivering or transporting goods through digital platforms.

At the same time, new legislation specifies that eligibility for an exemption from ENFIA, Greece’s annual property tax, on main residences in smaller communities will be determined through the Property Ownership and Management Register (MIDA).

The provisions are included in the government’s draft legislation implementing the measures announced at the Thessaloniki International Fair (TIF), which has been published for public consultation.

Which electronic payments qualify for the tax deduction?

The tax incentive for electronic payments will continue in 2027, but it applies only to specific services rather than all purchases made by card.

Eligible expenses include home repairs and maintenance, plumbing and electrical work, cleaning and domestic help, taxi fares, veterinary services, hairdressing, gym memberships and dance classes, childcare and elderly care, legal services – but not accounting services – and funeral services.

For these expenses, taxpayers can deduct an amount equivalent to 30% of their value from their taxable income, subject to an annual ceiling of €5,000 and limited to the amount of income against which the deduction can be applied.

Crucially, this is a deduction from the income on which tax is calculated, not a refund of 30% of the amount spent.

Tax-free tips of up to €6,000 a year

Under the proposed changes, the income tax exemption for voluntary tips received by employees will rise from €300 a month to €6,000 per tax year.

The same annual exemption will also be extended to self-employed individuals working under independent service or project contracts who deliver or transport goods through digital platforms.

To qualify, voluntary tips must relate to transactions carried out through the platform.

Payments that constitute a fixed or agreed part of a worker’s remuneration will not qualify for the exemption.

Property tax exemptions for main residences in smaller communities

An exemption from ENFIA for main residences in smaller communities had already been announced. The new draft legislation clarifies that a property’s status as a main residence will be established using MIDA.

From 2027, the exemption will apply to individuals who are tax residents of Greece and whose main residence is located in a settlement with a population of up to 2,000.

In Western Macedonia, the population threshold will be increased to 2,200. Eligibility will be determined using figures from the most recent population census.

Settlements within the Attica region will be excluded, with the exception of those in the Regional Unit of Islands.

The exemption will apply to ownership rights in a main residence, provided that the property’s full ownership value, as calculated for ENFIA purposes, does not exceed €400,000.