The bill containing the measures announced at the Thessaloniki International Fair (TIF) has been submitted to parliament. It includes the possibility of correcting property declarations (E9) for 13 years without the resulting tax charges, reduced VAT on personal hygiene products and additional financial support.

The bill has grown from 48 to 52 articles following public consultation, with new provisions for property owners, families and businesses, as well as changes to the terms governing the children’s investment account.

The most significant addition for property owners is the option to correct property declarations for the years 2014 to 2026 inclusive, so that their assets are accurately recorded in the Property Ownership and Management Register, known as MIDA. The provision allows the correct information to be submitted without having to pay the tax for each year concerned, or the interest and fines arising from the declaration. The deadline will run until the end of the fourth month after the register becomes operational, with the possibility of an extension.

Other additions include a VAT cut from 24% to 13% on women’s hygiene products and adult incontinence pads, effective from 1 January 2027, as well as vouchers of up to €3,000 per installation for new fuel and energy input-output monitoring systems, covering eligible expenditure for the years 2024–2027. The increased spending limits and income criteria for the pre-school education and creative activities programme will apply retrospectively from 1 September 2026, with the relevant payments adjusted accordingly.

Meanwhile, buyers whose tax residence is outside the European Union and the European Economic Area will be explicitly exempt from the increased 15% property transfer tax if they are entitled to first-home tax relief.

For the children’s investment account, the launch date will be set by ministerial decision, rather than being fixed at 1 January 2027.

The default investment option is changing from conservative to growth-oriented. The protection afforded to contributions matched by state funding is being specified in greater detail, while the cost of capital protection will be charged separately, in addition to the annual cost cap of 0.50%.

Under income tax rules, the zero tax rate on income of up to €20,000 is being extended to taxpayers with three dependent children. It already applies to families with four or more children. The measure concerns the 2027 tax year, with employees set to see the reduction in tax withheld from their salaries from the beginning of that year. The key factor is the number of dependent children recognised for tax purposes.

A zero tax rate on the first €20,000 will also apply to profits from individual agricultural activities carried out by professional farmers, provided that at least 50% of their income comes from this activity. For farmers, the change applies to income earned in 2026 and will be reflected in tax returns filed in 2027.

Incentives for electronic payments are being extended through 2027. Thirty per cent of certain service-related expenses paid electronically will continue to be deducted from taxable income, with a maximum annual deduction of €5,000. The final tax benefit will depend on the rate at which the income is taxed. The double-counting of certain electronically paid healthcare expenses towards the required level of electronic spending will also continue.

What else is included in the bill

For tips, the tax-free allowance is being increased to €6,000 per tax year, from €300 per month. The provision applies both to employees who receive voluntary tips from customers and to delivery workers who collaborate with digital platforms, subject to the specified conditions.

Meanwhile, survivor’s pensions received by certain categories of children will be excluded from the income threshold assessed when determining whether they qualify as dependent family members.

For self-employed professionals and sole proprietorships, the advance payment of income tax is being reduced from 55% to 50%. The change applies to the advance tax assessment issued for the 2027 tax year and subsequent years. Regarding minimum deemed income, certain surcharges will not apply to those who cumulatively meet the requirements for data transmission, point-of-sale system connectivity, and tax and employment-law compliance.

The 50% reduction in minimum deemed income is being extended to professionals in small settlements with populations of up to 2,000, and up to 2,200 in Western Macedonia, subject to the specified exceptions. For taxi operators, the amount will be reduced in proportion to their ownership stake in the vehicle, while minors holding a taxi operating licence will be exempt from minimum deemed income.

For businesses, the abolition of the business levy is being phased in. For the 2026 tax year, legal entities and legal arrangements will be exempt from the levy for their headquarters and branches outside the Attica region, as well as in the Islands Regional Unit of Attica. In the rest of Attica, the levy will be cut by 50% for the 2027 tax year and abolished entirely from 2028.

Accelerated depreciation is also being introduced for machinery and equipment acquired from the 2027 tax year onwards, at rates of 10% for the first two years, 15% for the third and fourth years, and 25% for the fifth and sixth years. Conversely, the tax rate will rise to 15% on the portion exceeding €60,000 of annual remuneration paid out of company profits to board members, directors and staff.

Property

The suspension of capital gains tax on property transfers is being extended until 31 December 2027. The suspension of VAT on unsold newly built properties will also remain in force for the same period, subject to an application by the developer and the specified conditions. The income tax reduction for eligible building renovation expenses is also being extended until 2027.

For homes that were vacant or available for short-term rental and are transferred to the long-term rental market, the possibility of a 36-month exemption on rental income is being extended to contracts concluded by the end of 2027, provided the relevant conditions are met. The extension concerns the deadline for concluding a rental agreement that qualifies for the tax exemption.

The exemption from the Unified Property Ownership Tax (ENFIA) for primary residences will be extended from 2027 to settlements with populations of up to 2,000, and up to 2,200 in Western Macedonia. It applies to homes with a total taxable value of up to €400,000, subject to the geographical and other conditions set out in the provision. The primary residence will be determined on the basis of MIDA.

For home purchases by individuals whose tax residence is in countries outside the European Union and the European Economic Area, the property transfer tax will rise from 3% to 15% for final contracts signed from 1 July 2027. The exemption added to the bill applies to those entitled to first-home relief under Article 42 of the Property Tax Code.

Regarding social security contributions, the unemployment contribution paid by employees will be cut by half a percentage point from 1 April 2027, falling from 1.20% to 0.70%. The corresponding employer contribution will remain unchanged. The entire reduction will benefit employees.

The annual financial support payment for vulnerable social groups will rise from €300 to €400 from 2026, while the number of eligible recipients will be expanded. Income and asset criteria will be abolished for the specified categories of retirement and survivor’s pension recipients aged over 65. The measure will also cover serving employees of General Government bodies who receive the specified tetraplegia and paraplegia benefits.

From 1 January 2027, certain disability benefits and allowances will be adjusted annually in line with the pension increase coefficient. For families with many children, the birth allowance will rise to €4,500 for a fourth child, €5,500 for a fifth child, and by a further €1,000 for each subsequent child. The change covers births from 1 January 2026. Eligible recipients who have already been paid will receive the difference by the end of the year, under the specified conditions, without having to submit a new application.

A gross Christmas bonus of €500 will be introduced for public sector employees, with the first payment scheduled for 16 December 2027. The amount will be subject to social security contributions, count towards pensionable earnings and be paid pro rata where an employee has not been on the payroll for the entire reference period. Special pension provisions are also being introduced for the families of deceased civil servants and military personnel, alongside the removal of employment-related pension reductions for certain categories of retired public sector employees.

An annual incentive of €5,000 per household will be introduced for the Municipality of Megisti, with an additional €1,000 for each dependent minor. Recipients must actually reside there for at least one full year and provide evidence that they meet the eligibility requirements. The payment will be tax-free and exempt from seizure. False declarations will be punishable by a fine equal to twice the amount received.

Individual Investment Account for Minors

The Individual Investment Account for Minors will be opened following an application by the child’s legal representative before the child turns two. Private contributions may reach €10,000 a year, while the state will contribute an amount equal to 100% of eligible payments, up to €1,200 annually.

The ceiling on state contributions is set to increase by 10% every five years. Contributions will be exempt from gift and parental-gift tax, while exemptions will also apply to investment returns.

Under the default investment option, the growth-oriented profile will switch to a balanced one three years before the child reaches adulthood, unless a different choice is made. Capital protection will initially cover up to €1,200 in private contributions and the corresponding state contribution of up to €1,200 per year.

Additional private contributions will not be covered by this protection, but an additional protection option may be selected at a separately determined cost. The cost of capital protection is excluded from the 0.50% annual cost ceiling for the default option. Withdrawals before the age of 18 will be permitted only in the specific exceptional circumstances provided for in the bill.

A separate provision increases funding for the national component of the Public Investment Budget for 2026 by €300 million.