Civil servants and farmers emerge as the biggest winners of the economic measures package presented by Prime Minister Kyriakos Mitsotakis at the Thessaloniki International Fair (TIF), while significant tax benefits are also provided for self-employed professionals. On the other side of the spectrum, businesses appear to be the least favored group, as several key market demands were left out of the announcements.
TIF: Who are the biggest winners and who is left behind by the new measures package
The measures package creates different tiers of beneficiaries, with the public sector sitting at the top of the list. Civil servants will receive a Christmas bonus, new salary increases tied to the rise in the minimum wage, and a further reduction in social security contributions. At the same time, significant tax relief is planned for farmers and the self-employed, while private sector employees will benefit mainly from the minimum wage increase and the reduction in contributions.
Businesses, on the other hand, gain access to new financing tools and a gradual reduction in advance tax payments — however, the absence of a corporate tax rate cut and the slow pace of tax relief leaves a significant portion of the market dissatisfied.
A detailed breakdown of the biggest winners from the TIF package
In detail:
1. Civil servants: Civil servants are the clear winners of the package, benefiting from three distinct advantages. From December 2027, a Christmas bonus of €500 gross is planned. In addition, by January 2028, new salary increases of €80 gross per month are expected, linked to the rise in the minimum wage. Furthermore, from April 2027, employee social security contributions will be reduced by an additional 0.5 percentage points. According to government projections, a 40-year-old civil servant with two children and a net salary of €1,447 will see a net benefit of €562 in 2027 and an additional €402 in 2028 — a total gain of €964.
2. Self-employed professionals: The self-employed are also among the winners, with the package offering tax incentives for those who maintain a clean compliance record. From 2026, a reduction in presumptive tax burdens is planned for compliant professionals, with exemptions from surcharges linked to turnover and payroll. These changes will be applied to 2027 tax returns. Additionally, advance tax payments will be reduced from the current 55% to 50% for the 2027 fiscal year. Professionals operating in settlements with fewer than 2,000 residents will also benefit from a 50% reduction in imputed income.
3. Farmers: Professional farmers stand to gain significantly as well. From the 2026 fiscal year, an income tax rate of zero is planned for earnings up to €20,000. The tax-free threshold increases by €13,571, reaching €22,204. This means a farmer with an income of €20,000 — who currently pays €1,183 in tax — will owe nothing. For an income of €30,000, the tax bill drops from €5,083 to €2,183.
4. Private sector employees: Workers in the private sector will benefit primarily from the minimum wage increase. The government’s target is for the minimum wage to reach €1,000 by January 2028, with seniority allowances potentially pushing total pay up to €1,300. From April 2027, employee social security contributions will also be reduced by a further 0.5 percentage points.
5. Businesses: Businesses appear to be the category that falls furthest short of pre-TIF expectations. Advance tax payments will be reduced by 5% annually from the 2028 fiscal year, with the goal of gradually bringing the rate down from the current 80% to 50%. Additionally, the business activity levy may be abolished in regional areas from the 2026 fiscal year — however, businesses in Attica, the heart of the country’s commercial activity, will continue to be subject to it. A 50% reduction is planned for 2028 and full abolition in 2029, meaning Attica-based businesses will continue paying the levy for another two years. Meanwhile, one of the key demands from business associations — a reduction in the corporate tax rate from 22% to 20% — was left out of the package entirely. The planned minimum wage increase to €1,000 by 2028 is also expected to further raise labor costs for businesses. As a consolation, the government announced a transfer of €1.5 billion from the Recovery Fund to the Hellenic Development Bank, aimed at boosting financing for small and medium-sized enterprises. Of the total amount, €1.1 billion will go toward lending tools and €400 million toward guarantee programs. There are, however, two additional measures with mixed implications for businesses. Profit distributions to board members exceeding €60,000 will be taxed at 15%, up from the current 5%, significantly increasing the tax burden on higher remuneration and distributions. On a more positive note, depreciation periods for business equipment will be accelerated — from 10 to 6 years — delivering faster tax benefits for companies that invest in new assets.
