With the political thermometer rising dangerously in the coming months, the government is turning to a new strategy of benefits and tax relief, ahead of the elections in 2027. The pressure comes from multiple fronts: from OPEKEPE issues and agricultural mobilizations to the upcoming trial for the tragic Tempe accident, which is expected to begin in March. In this environment, legislative initiatives that could provoke new social reactions are being “frozen” or withdrawn, giving way to measures with positive political impact as well as major projects and infrastructure that will be completed soon and will improve citizens’ daily lives.
Primary surplus estimated at 4.5% of GDP
In the economic team, planning for 2026-2027 benefits has already begun based on economic indicators and forecasts for surpluses. Relevant officials note that interventions are directly linked to economic performance and fiscal policy margins. The estimate that the 2025 primary surplus will reach 4.5%-4.6% of GDP, compared to a 3.7% target, creates room of up to 2 billion euros for new income support policies.
How workers, pensioners and businesses will be supported
At the same time, intensified controls against tax evasion are expected to further boost state revenues. The Real Estate Ownership and Management Registry (MIDA), which is expected to become fully operational very soon, is anticipated to play a key role in the new cycle of interventions. Through this system, AADE will gain complete visibility of every property, its use and the income generated from it. Electronic cross-checks will identify “black” rentals and undeclared properties, drastically reducing tax evasion in the real estate market. According to relevant officials, additional revenues can be utilized for new tax relief for compliant property owners from 2027.
Simultaneously, reducing or even abolishing the special solidarity contribution for pensioners is being examined, depending on available resources from the primary surplus. The pensioners’ solidarity contribution is a graduated withholding imposed on main pensions above 1,400 euros gross, aimed at financing pension fund deficits. However, from this year the bracket thresholds have been indexed, resulting in lower burden for most pensioners. The contribution is withheld monthly and varies according to pension amount, reaching up to 14% for high pensions, while a separate contribution is imposed on supplementary pensions.
Beyond the solidarity contribution, doubling the 250-euro income support is also on the table, aiming to give it characteristics of a “13th pension.” Expansion of beneficiaries is also planned, as today the measure affects approximately 1.4 million citizens – pensioners over 65 with annual income up to 14,000 euros (single or widowed) or up to 26,000 euros (married or in civil partnership), uninsured elderly and people with disabilities.
Timeline of new government interventions
After individuals, the tax relief baton passes to businesses, with the government preparing a new package of measures targeting 2027. At the center of planning are interventions aimed at reducing tax burdens and enhancing liquidity, in an effort to meet market demands. In this context, reducing advance tax payments is being examined – a measure considered “key” for businesses’ financial relief – as well as abolishing professional fees. Additionally, the “surprise” of reducing corporate tax rate by two percentage points, from 22% to 20%, as envisioned in the 2019 electoral program, is not ruled out. The economic team estimates that the 800 million euros saved from the defense spending escape clause can be directed toward business sector relief or new improvements to the deemed taxation system for freelancers and self-employed. New reductions in rental income taxes are also being examined, depending on MIDA results. Specifically, the timeline of new government interventions is as follows:
April 2026: Interventions supporting pensioners
Supplementary interventions for 2026 will target pensioners and low-income workers. Information suggests that either reduction or abolition of the special solidarity contribution will be announced at Easter, leading to new increases in net pensions. Alternatively, doubling the 250-euro income support is being examined. Meanwhile, minimum wage will increase to 920 euros, from 880 euros today.
September 2026: Thessaloniki International Fair
This year’s TIF gains pivotal importance ahead of 2027 elections. As government Vice President Kostis Hatzidakis announced, new tax and social security contribution reductions are planned. According to information, the package will focus on businesses and property owners. Reducing advance tax payments is considered a central measure, as it currently reaches up to 80% of next year’s tax. Meanwhile, the new mandatory rent payment system through bank accounts from April 1, 2026, will be evaluated.
April 2027: Minimum wage at 1,000 euros
Income enhancement policy peaks in April 2027 with a new minimum wage increase reaching 1,000 euros, from the 920 euros planned for the second phase of 2026. This increase will directly impact worker salaries in both public and private sectors, while affecting benefits and creating a cycle of positive effects on consumption and demand.
