The new year will begin with higher net salaries for millions of Greeks. The Thessaloniki International Trade Fair package for 2026, worth 1.76 billion euros, brings tax cuts and salary increases affecting young workers, families with children, pensioners, uniformed personnel and public employees.
Young workers: What they gain from the Thessaloniki package
In detail:
For young people aged 26 to 30, the tax rate for income between 10,000 and 20,000 euros is set at 9%. The measure affects approximately 260,000 workers (of whom 70,000 are under 25), who from January will see salary increases due to lower withholding taxes.
• For example, a 25-year-old hospitality worker with net earnings of 1,250 euros per month will have an annual benefit of 2,480 euros – an amount equivalent to almost two salaries.
Employees: What they gain from tax cuts in the Thessaloniki package
From 2026, with reduced tax rates, other categories of employees and pensioners will also see increases in their net earnings.
• An employee with two children and taxable income of 30,000 euros (1,776 euros net per month) will benefit by 1,200 euros, approximately two-thirds of one salary.
• A father of three with net earnings of 1,291 euros will see a tax reduction of 1,300 euros, equal to almost one salary.
• A parent of many children with a salary of 1,800 euros will gain 4,100 euros, nearly 2.3 salaries.
• A business executive without children earning 50,000 euros with net pay of 2,580 euros will benefit by 1,100 euros.
Individual businesses and farmers will see benefits when filing their 2026 tax year returns in March 2027.
• For example, a 30-year-old self-employed professional without children earning 20,000 euros will have a tax reduction of 1,300 euros – equivalent to almost one salary.
What pensioners gain from the Thessaloniki announcements
From January 2026, all pensioners will receive a new increase based on inflation and GDP, without offsetting 50% of the personal difference with the pension increase. One year later, in January 2027, the offset is completely abolished. The fiscal cost is estimated at 75 million euros for 2026, with an additional 135 million euros in 2027, 113 million euros in 2028, and 106 million euros in 2029. In total, approximately 671,000 pensioners with personal differences will see direct benefits.
Examples:
• A pensioner with taxable income of 10,000 euros and net monthly income of 823 euros will receive 214 euros from the increase (based on GDP and inflation) and 250 euros from the November extraordinary support. Total 464 euros net. If they maintain a personal difference, the benefit is reduced to 357 euros.
• A pensioner with taxable income of 14,000 euros and net monthly income of 1,080 euros will receive 263 euros from the increase, 250 euros from November support, and 80 euros from income tax reduction. Total 593 euros net, or 462 euros if subject to personal difference.
Uniformed personnel and public employees
• Public employees: Beyond tax cuts, from April 2026 they will receive salary increases linked to minimum wage adjustments. The final decision on the amount will be made through consultation with social partners. The annual budget cost is estimated at approximately 358 million euros.
• Armed Forces: From October 2025, the pay scale is reformed for approximately 75,000 personnel. The average increase is 145 euros per month, with total cost of 153 million euros. Of this, 77 million euros will be saved through restructuring of the Armed Forces.
• Security Forces (Police, Fire Service, Coast Guard): From the same month (October 2025), increases averaging 111 euros per month will be given to approximately 76,000 personnel. The fiscal cost is estimated at 120 million euros annually.
• Ministry of Foreign Affairs: Foreign service compensation and special duty allowances for diplomatic staff are increased, while coverage for children’s tuition is expanded. Annual cost amounts to approximately 30 million euros.
• Academic qualifications: Five-year diplomas from Polytechnics and other Universities are recognized for salary purposes, proportional to postgraduate degrees. This means promotion by two salary scales for approximately 5,000 employees, with fiscal cost of 7 million euros annually.
Property owners
• From tax year 2026, an intermediate rate of 25% is established for rental income between 12,000-24,000 euros (versus 15% up to 12,000 and 35% above the threshold). Direct beneficiaries are estimated at 161,587 owners, with annual budget cost of 90 million euros. Relief can reach up to 1,400 euros.
• From November 2025, permanent refund of one month’s rent for primary or student housing will apply to 80% of tenants, based on income and asset criteria. Cost 230 million euros per year.
• The three-year income tax exemption for vacant homes rented long-term by end-2026 is extended for 2026. Cost 13 million euros for 2026 and 22 million euros for 2027.
• VAT suspension on new buildings is extended until end-2026 to boost housing supply. Cost 18 million euros annually.
• Income tax reduction for energy/operational building upgrade expenses is extended for 2025-2026 (cost 5 million euros annually).
• The restriction on creating new short-term rentals in three Athens municipal districts is maintained until end-2026.
• Property tax: Gradually abolished for primary residences in settlements up to 1,500 inhabitants – with 50% reduction in 2026 and complete abolition in 2027.
