Greek Prime Minister Kyriakos Mitsotakis today announced thirty wide-ranging measures covering the full spectrum of Greek society, to be implemented on a concrete timeline through December 2027, speaking from the podium of the Thessaloniki International Fair (TIF). The government is pursuing a dual objective: boosting household incomes while reducing the tax burden, with a particular focus on the middle class. Among the most significant measures are an increase to €400 (+€100 net) from November 2026 in the permanent annual benefit for pensioners, the creation of a “Piggy Bank for the New Generation” (for newborns up to 2 years old) — under which the state will match whatever parents deposit, up to €1,200 per year, with the cap rising 10% every five years so that by age 18 the fund exceeds €60,000 — the “My Home 3” housing programme worth up to €2 billion through the Hellenic Development Bank, and a rise in the property transfer tax from 3% to 15% for home purchases by non-EU citizens (e.g. from China, Turkey, and Israel). Mitsotakis also announced zero income tax for farmers earning up to €20,000, while “from tax year 2027, the tax advance payment rate will be cut from 55% to 50%, and from 2028 the same burden will be reduced annually by 5% for legal entities, gradually bringing it down from 80% to 50% for compliant professionals.” He further stressed that “we are reducing the deemed income thresholds for compliant self-employed professionals by abolishing the two most significant surcharges in their calculation — those based on turnover and staff payroll costs.” This intervention benefits more than 155,000 professionals in total.
Mitsotakis: The tragic accident at Tanagra casts a shadow over today’s event
The Prime Minister opened his address by acknowledging the tragic loss of two Air Force officers at Tanagra. “The tragic incident at Tanagra casts a shadow over today’s event. A deep sense of grief pervades us — our thoughts are with the families of the two pilots, a reminder of the daily danger undertaken by Greece’s airmen as they remain on standby at all times. The state will stand by their families, and especially by the two minor children they leave behind,” said Kyriakos Mitsotakis as he took to the podium at the 90th TIF. The Prime Minister noted that this was his eighth appearance at the TIF as Prime Minister. “With a clear picture of our national challenges. More experienced. I speak to you honestly, feeling more optimistic, ready and determined than ever before,” he continued.
“It is time for our country to reap the fruits of its efforts”
“It is time for our country to reap the fruits of its efforts. The strong foundations we have laid allow us to build the Greece of 2030. The horizon ahead of us stretches more openly than ever. We have the right plan to reach it. I will outline a comprehensive vision of national perspective, with specific and fully costed interventions, set out on a four-year calendar. This is the Roadmap to 2027 — a prologue to the new programme. A path toward 2031, and a leap in prosperity for every citizen, from urban centres to the most remote village and the smallest island,” he added. “The benefits of growth must return to society as a dividend, without ever putting fiscal stability at risk. Policy for the many. Everything I will announce today is the distillation of conversations with citizens across Greece. I felt their anxiety about the cost of living. Their expectation that the economy’s success will be reflected in their own wallets. That the strength of the country will become the strength of each individual citizen. I also heard about real problems of mismanagement and poor governance. The confrontation with the entrenched state bureaucracy may have delivered victories, but it has not yet managed to prevail definitively,” he stressed.
“In my meetings with citizens, it was clear that everyone today feels more secure and confident in the strength of our country. Around them, threats remain,” said Kyriakos Mitsotakis. “Domestic political stability takes on enormous importance. Travelling across Greece, I saw the dual need for the country to converge with Europe more quickly. Growth must concern everyone and must be fair. In our new choices, we aim for the progress shown in the numbers to also pass into the daily lives of every citizen, and for national growth to be felt in the budget of every household. All Greeks must feel their step is steady in an unstable world. We are living through an unprecedented period of transition,” the Prime Minister continued. “This year we are turning our attention to the most dynamic layers of society — and to society as a whole simultaneously. To the self-employed, to small and medium-sized enterprises, to pensioners, to civil servants, to farmers, to private sector employees, to families, to parents of three children, to large families, and to tenants,” he emphasised.
The full list of measures
Self-employed professionals
– Reduction of deemed income thresholds for compliant professionals, with exemption from surcharges based on turnover and staff payroll costs — effective from 2026 (filed in 2027 tax returns)
– 50% reduction in deemed income thresholds for settlements with fewer than 2,000 residents (2,200 in Western Macedonia)
Example: a 15-year-old catering business with 5 employees and €105,000 in payroll costs
Annual saving: €2,534/year
– Reduction of tax advance payment to 50% (from the current 55%) (tax year 2027)
Businesses
– Annual reduction of tax advance payment by 5% (tax year 2028) until it reaches 50% (down from the current 80%)
– Transfer of €1.5 billion from the Recovery and Resilience Fund (RRF) to the Hellenic Development Bank for small and medium-sized enterprises:
€1.1 billion in lending
€400 million in guarantees
– Abolition of the business activity levy in the Greek regions outside Attica (tax year 2026)
– 50% reduction in Attica in 2028 and full abolition in 2029
Example: a retail business in Thessaloniki previously paid €1,600 — from 2027 it will pay €0
Pensioners
– Increase to €400 (+€100 net) from November 2026 in the permanent annual benefit
Expanded eligibility — all recipients over 65 years of age
Private sector employees
– Increase in the minimum wage to €1,000 (€1,300 with seniority increments) by January 2028
– Further reduction of employee social security contributions by 0.5 percentage points from April 2027 (alongside the minimum wage increase)
Examples: a young worker on the minimum wage will benefit by €414 in 2027 and €1,040 in 2028. An employee with three seniority increments earning €959 net will see an increase of €1,055 in 2028.
Civil servants
– Christmas bonus of €500 (gross) from December 2027
– New pay rises of €80/month (gross) by January 2028 due to minimum wage increase
Example: a 40-year-old civil servant with 2 children and a net salary of €1,447 will see an increase of €562 net in 2027 and an additional €402 in 2028: a total gain of €964.
Farmers
– Zero income tax rate on earnings up to €20,000 for professional farmers, from tax year 2026
– The minimum tax-free threshold increases by €13,571, rising to €22,204
Examples:
A farmer with €20,000 in income previously paid: €1,183 — will now pay: €0
A farmer with €30,000 in income previously paid: €5,083 — will now pay: €2,183
Social policy
Demographics
– Creation of a “Piggy Bank for the New Generation” (for newborns up to 2 years old): The state will match whatever parents deposit, up to €1,200 per year — a cap that increases by 10% every five years. By age 18, the fund will exceed €60,000.
Families with three children
Zero income tax on earnings up to €20,000 (from tax year 2027)
The tax-free threshold increases by €11,000, rising to €25,364
Example: a parent of three with €20,000 in income previously paid €620 in tax — will now pay €0
Large families (four or more children)
Increase in the birth grant by €1,000 per additional child
Applies to births after January 2026
For a 4th child: from €3,500 to €4,500
For a 5th child: from €3,500 to €5,500, and so on
People with disabilities
– Indexation of disability benefits to inflation (from 2027): Affects 218,000 citizens with an average annual benefit of €220
Housing
– “My Home 3” programme worth €2 billion through the Hellenic Development Bank
– Increase in property transfer tax from 3% to 15% for home purchases by non-EU citizens (e.g. from China, Turkey, Israel)
– Abolition of the ENFIA property tax in settlements of up to 2,000 residents (up from 1,500) and up to 2,200 (up from 1,700) in Western Macedonia, from 2027
Energy costs
Gradual 30% reduction in wholesale electricity prices from 2027 to 2029. From January 2027, a 50% reduction in Universal Service Obligation (USO) charges on residential electricity bills
Implementation timeline for key measures from September 2026 through December 2027
25 September 2026: Payment of double rent subsidy to doctors, nurses and teachers for tax year 2024, on a retroactive basis
1 November 2026: Launch of the new system for returning fuel excise duty to farmers at the pump
30 November 2026: Payment of rent subsidy (and double rent subsidy for doctors, nurses and teachers) for tax year 2025
30 November 2026: Payment of the €400 benefit to all pensioners over 65, persons with disabilities, and uninsured elderly citizens
Late December 2026: Payment of increased January pensions based on inflation and GDP, without offsetting the personal difference
1 January 2027: Zero income tax rate for parents of three children on earnings up to €20,000
1 January 2027: Indexation of disability benefits to inflation
1 January 2027: Reduction of USO charges on electricity bills for all residential consumers from €6.9/MWh to €3.45/MWh
January 2027: Launch of the “Piggy Bank for the New Generation” (the dedicated investment account for infants up to 2 years old)
January 2027: Launch of the “My Home III” programme
Mid-March — ENFIA assessment: Abolition from 2027 of ENFIA property tax in settlements of up to 2,000 residents (2,200 in Western Macedonia)
1 April 2027: Minimum wage increase and corresponding across-the-board pay rise for civil servants, with seniority increments and allowances adjusted accordingly
1 April 2027: Reduction of social security contributions by 0.5 percentage points for private sector employees
Mid-March – Mid-July 2027, tax filing season — tax reductions totalling €884 million:
· Reduction in income tax for self-employed professionals and farmers (based on reductions implemented in tax year 2026) amounting to €402 million.
· Reduction of deemed income thresholds for self-employed professionals: Exemption from surcharges based on turnover and staff payroll costs in the calculation of minimum net income, for compliant self-employed professionals. Additionally, extension of the 50% reduction to settlements of up to 2,000 residents and special provisions for taxi operators based on their co-ownership percentage, at a cost of €170 million.
· Abolition of the business activity levy in the Greek regions and in Thessaloniki, at a cost of €82 million.
· Reduction of rental income tax with the introduction of an intermediate rate of 25% (based on reforms implemented in tax year 2026), at a cost of €90 million.
· Exemption from income tax for foundations and bequests (based on the reform implemented from tax year 2026), at a cost of €43 million.
· Reduction of the income tax rate for primary-occupation farmers to 0% on earnings up to €20,000, at a cost of €87 million.
· For the purpose of defining a dependent child for income tax purposes, death pension income received by the child will no longer be counted within the €3,000 threshold, at a cost of €10 million.
30 November 2027: Renewed payment of rent subsidy (and double rent subsidy for doctors, nurses and teachers) for tax year 2026
30 November 2027: Payment of the €400 benefit to pensioners, persons with disabilities, and uninsured elderly citizens
Late December 2027
