Thousands of self-employed professionals will pay up to €4,000 less in tax following the abolition of additional surcharges under the presumptive income system, while the 0.5-percentage-point reduction in social security contributions from April 2027 will benefit employees in full. For pensioners, the permanent annual payment will increase to €400 and be extended to 270,000 additional beneficiaries, while public-sector employees will receive a permanent €500 gross Christmas payment from 2027.

The detailed measures also include new tax interventions. From July 1, 2027, the property transfer tax on residential property will rise from 3% to 15% for individuals from countries outside the EU and European Economic Area (EEA) who are not long-term residents. Meanwhile, compensation received by board members and senior executives through profit-sharing will be taxed at 15% on the portion exceeding €60,000, compared with 5% today. The tax on ordinary dividends will remain unchanged at 5%.

At the same time, the new “My Home 3” scheme will provide mortgage loans of up to €230,000, while the investment savings account for children up to two years old will offer guaranteed-capital options and tax-free returns.

The full details of the measures were presented by the political leadership of the Ministry of National Economy and Finance: Minister Kyriakos Pierrakakis, Deputy Minister Nikos Papanathanasis, and Deputy Ministers Thanos Petralias and Dimitris Markopoulos.

The fiscal cost of the new measures that have not yet been legislated is estimated at €605 million in 2026 and €2.2 billion in 2027, gradually rising to €3.6 billion by 2030. If already legislated measures that have not yet been implemented are also taken into account, the total annual cost reaches €1.54 billion in 2026, approximately €5 billion in 2027, and nearly €9 billion by 2030.

Who will benefit from the abolition of presumptive-tax surcharges?

From the 2026 tax year, compliant self-employed professionals will no longer face the additional surcharges that currently raise their minimum presumptive income above the baseline linked to the minimum wage and three-year seniority increments. These surcharges arise from payroll costs and turnover exceeding the average turnover for the corresponding business activity code (KAD).

The surcharges currently affect 156,000 sole proprietorships. According to Ministry figures, approximately:

• 18,000 professionals will save €1,000;
• 11,000 will receive a €1,500 tax reduction;
• 6,500 will save €2,000;
• approximately 4,600 will save €2,500; and
• 5,000 professionals will see their tax bill reduced by approximately €4,000.

To qualify as a “compliant” professional and be exempt from the surcharges, a taxpayer must:

• Have submitted the required data to myDATA, the electronic platform for transmitting business transaction data.
• Have completed and maintained the connection between their cash register and POS terminal.
• Not have been fined by the tax authorities or the Labour Inspectorate during the previous five tax years.
• Have filed all VAT and income-tax returns for the previous five years.

For example, a café owner operating for 15 years, with five employees and minimum presumptive income of €27,244, will receive an annual tax reduction of €2,534.

A sole-proprietor shoe retailer operating for four years, with two employees and minimum presumptive income of €18,552, will save €1,134.

A self-employed accountant operating for 20 years, with no employees and minimum presumptive income of €19,820, will benefit by €615.

However, the basic structure of the presumptive taxation system remains in place. The minimum threshold will continue to be linked to the minimum wage and will increase through three-year seniority increments after the business has been operating for six years. Kyriakos Pierrakakis did not commit to fully abolishing the system, but left open the possibility of further targeted adjustments.

Taxi operators

Changes are also coming for taxi operators. The presumptive tax will be calculated according to the vehicle owner’s actual ownership share, while minors who inherit a taxi licence will be exempt from presumptive income taxation.

At the same time, the 50% reduction in presumptive income will be extended to settlements with populations of up to 2,000 residents, compared with 1,500 today. In Western Macedonia specifically, the population threshold will rise from 1,700 to 2,200 residents. The change will cover an additional 131 settlements.

The reduction in social security contributions will go entirely to employees

From April 1, 2027, social security contributions will be reduced by 0.5 percentage points. The key new clarification is that the entire reduction will come from the employee’s share, rather than the employer’s. This means the full benefit will be reflected in employees’ net monthly pay.

The loss of revenue for DYPA, Greece’s Public Employment Service, will be covered by the state budget so that no deficit is created. The cost is estimated at €163 million in 2027 and €218 million annually from 2028.

In April 2027, the new minimum-wage increase, the three-year seniority increments and the reduction in social security contributions will take effect together. In January 2028, the minimum wage will reach €1,000, rising to €1,300 for workers with completed three-year seniority increments.

The increase in the minimum wage will also affect unemployment benefits, the special maternity benefit, overtime pay and other benefits linked to the minimum wage. The basic salary of public-sector employees will be adjusted across the board in both April 2027 and January 2028.

According to the examples presented, a 23-year-old worker with no three-year seniority increments will see their net salary rise from €797 today to €836 in April 2027 and €871 in January 2028. The additional net income is estimated at €414 in 2027 and €1,040 in 2028.

The government’s target is for the average full-time salary, which stood at €1,516 in 2025, to exceed €1,700 in 2028 and €1,800 by 2030.

Which pensioners will receive the €400 payment?

The permanent annual payment made in November will increase from €300 to €400 net and will be extended to 270,000 additional pensioners.

Overall, the measure will cover approximately 2.2 million beneficiaries, including around two million pensioners and 172,000 recipients of disability benefits. The total annual cost will reach €880 million.

The €400 payment will be available to all old-age pensioners aged over 65, without income or asset criteria; beneficiaries of survivor’s pensions from the age of 60; disability pensioners regardless of age; and recipients of disability benefits with no age limit.

Old-age pensioners under 65 will not qualify. The ministry’s political leadership said it did not want to create a financial incentive for early retirement.

Meanwhile, pensions are expected to increase by 2.6% from January 1, 2027, based on current data. The final percentage will be determined according to the figures in the final draft budget. Disability benefits will also be adjusted for inflation so that they reflect changes in the cost of living.

€500 payment for public-sector employees

From 2027, public-sector employees will receive a permanent €500 gross Christmas payment. The payment will count toward pensionable earnings.

The net amount will not be the same for everyone, as it will depend on social security deductions, total income and each employee’s tax bracket. No separate 20% tax rate was announced for the payment.

Zero tax rate for families with three children and farmers

From 2027, the tax rate will be reduced to zero on the portion of income up to €20,000 for families with three children and for professional farmers.

This is not simply an increase in the tax-free threshold. A zero tax rate means that taxpayers earning more than €20,000 will also benefit, because the first portion of their income will not be taxed.

The measure concerns approximately 87,000 taxpayers with three children, nearly 34,000 of whom are self-employed. An employee with three children and an income of €20,000 will save €620 per year, while at €30,000 the annual benefit will reach €1,800.

For farmers, the measure concerns 47,251 professional farmers, who report 56% of total agricultural income. Because of the tax credit, the effective tax burden will be zero for income of up to approximately €22,000, while the tax reduction could reach €2,900.

A childless farmer earning €15,000, who currently pays €183 in tax, will pay no tax. A farmer with two children and income of €20,000, who currently pays €540, will also pay no tax. For a childless farmer earning €30,000, the tax reduction is estimated at approximately €2,900.

“My Home 3” with loans of up to €230,000

The new “My Home 3” housing scheme will have total funding of €2 billion. The maximum age limit will rise from 50 to 55, while the maximum loan will increase from €190,000 to €230,000, with financing remaining available for up to 90% of the property’s value.

The maximum commercial value of the property will rise from €250,000 to €300,000. The income threshold will be set at €35,000 for a couple, increased by €7,000 for each child, compared with €5,000 previously. As a result, a four-member family will be eligible with income of up to €49,000.

For families with four or more children, the basic 150-square-metre limit will be increased by 10 square metres for each child beyond the fourth.

The property-age criterion, however, will not change. It will remain 2007 for general beneficiaries and 2020 for beneficiaries with disabilities.

At the same time, the tax exemption for vacant properties transferred to long-term rental, the tax deduction for building-upgrade expenses and the suspension of VAT on new construction will be extended until 2030.

The restriction on new short-term rental listings in municipal districts of Athens and Thessaloniki will also continue in 2027.

The eligibility limits for the rent refund will also be expanded, while teachers, doctors and nurses working in regional areas away from their permanent place of residence will be eligible for a double rent refund.

Fivefold property transfer tax for buyers from third countries

From July 1, 2027, the property transfer tax will rise from 3% to 15% for individuals who are citizens of countries outside the EU and EEA and who do not have long-term resident status.

The increase applies only to residential properties, not commercial premises, plots of land or other types of property. It does not apply to legal entities or to individuals with long-term resident status.

The six-month period before the measure takes effect is intended to allow property transactions already underway to be completed. For a home with a taxable value of €200,000, the basic property transfer tax will rise from €6,000 to €30,000.

Investment “savings pot” for children

Within the first two years after a child’s birth, the family will be able to open a special investment account. For every euro deposited, the state will contribute an additional euro, with a maximum government contribution of €1,200 per year. The cap will increase by 10% every five years.

In addition to parents, grandparents, godparents, relatives and family friends will be able to contribute to the account. The products will be offered by banks, insurance companies and mutual-fund management companies and will be certified in cooperation with the Bank of Greece and the Hellenic Capital Market Commission.

Each provider will be required to offer at least one guaranteed-capital product, while higher-risk options with potentially higher returns will also be available. Interest and capital gains will be tax-free.

The 3%, 5% and 7% returns presented are indicative scenarios and not guaranteed returns.

With maximum contributions, total investments by the time the child reaches adulthood are estimated at €49,304, half of which would come from the state. With an average return of 3%, the final capital could approach €64,000.

15% tax on high executive compensation

From January 1, 2027, compensation received by board members and senior executives through profit-sharing will be taxed at 15%, rather than 5%, on the portion exceeding €60,000.

The change is intended to align the tax treatment of such compensation with stock options, which are taxed at 15%. The tax on ordinary dividends will remain unchanged at 5%.

Business levy, tax prepayment and investment

In 2027, the business levy will be abolished for businesses operating in the regions outside Attica, in Thessaloniki and on the islands of the Regional Unit of the Islands of Attica. In 2028, it will be reduced by 50% in the rest of Attica, and in 2029 it will be abolished nationwide.

The levy is currently assessed on 245,003 legal entities, of which 121,922 are located outside Attica. A business in Larissa with no branch will save €800 from 2027, while a business in Thessaloniki with one branch will benefit by €1,600.

From the 2028 tax year, the corporate income-tax prepayment will be reduced by five percentage points each year, falling from 80% to 50% by 2033. The first reduction will appear in tax returns filed in 2029. For sole proprietorships, the tax prepayment will fall to 50% from the 2027 tax year.

At the same time, depreciation of investments in mechanical equipment will be accelerated, with the depreciation period reduced from 10 years to six years.

Two new financing instruments for small and medium-sized enterprises will also be launched through the Hellenic Development Bank, with €1.5 billion in funding from the Recovery Fund. Of this, €1.1 billion will go toward co-financed loans and €400 million toward a guarantee scheme.

With banks participating, total lending is expected to reach €5 billion, including €2.2 billion in co-financed loans and €2.8 billion in loans backed by guarantees.