The draft bill containing the measures announced at the 90th Thessaloniki International Fair and due to take effect in 2026 and 2027 has been published for public consultation.
The bill will remain open for public consultation until 1 November 2026, with the aim of being enacted later that month. It includes the following measures:
Tax and contribution cuts
The income tax rate for parents with three children will be cut to 0% on income up to €20,000 from the 2027 tax year (employees will see the reductions from 1 January 2027). A total of 87,000 of the 152,000 parents with three children whose income is above the tax-free threshold will benefit. With the rate reduced to zero, the threshold rises from €14,364 to €25,364.
The income tax rate for full-time farmers will be cut to 0% on income up to €20,000 from the 2026 tax year (tax returns filed in 2027). About 47,000 of the 246,000 full-time farmers whose income is above the tax-free threshold will benefit. With the rate reduced to zero, the threshold for a farmer without children rises from €8,633 to €22,204.
Reductions in the minimum taxable net income for self-employed professionals from the 2026 tax year (tax returns filed in 2027):
- Compliant self-employed professionals will be exempt from increases based on turnover and staff payroll (as well as the criterion based on the highest-paid employee) when the minimum taxable net income is calculated, provided they have submitted all their myDATA data, linked their POS terminals and cash registers for the relevant tax year, and have not committed a tax or labour law violation in the past five years.
- The 50% reduction in the minimum taxable net income will be extended to settlements with up to 2,000 residents, and up to 2,200 in Western Macedonia, compared with 1,500 at present.
- For operators of public-service passenger vehicles (taxis), the minimum income will be reduced to the amount corresponding to the operator’s ownership share in the vehicle. In addition, underage children who hold a taxi operating licence will be exempt from the minimum income requirement.
The advance payment of tax by sole proprietors will be cut from 55% to 50% from the 2027 tax year.
Social security contributions in the private sector will be cut by 0.5% from April 2027. The entire reduction will come from employees’ contributions.
The business levy on legal entities will be abolished from the 2026 tax year for head offices and branches located outside the Attica Region, as well as in Attica’s Islands Regional Unit. For the 2027 tax year, the levy on legal entities’ head offices and branches within the Attica Region will be cut by 50%, before being abolished entirely for the 2028 tax year.
Accelerated depreciation allowances will be introduced for investments in machinery and equipment made from the 2027 tax year. Depreciation will be accelerated from 10% over a decade to rates of 10%-10%-15%-15%-25%-25% over six years.
When determining whether a child is a dependent for income tax purposes, survivor’s pension income received by the child will not count towards the €3,000 limit. This will protect the tax status of single-parent families resulting from widowhood and allow the parent to benefit from the reduced tax rates provided for according to the number of children (an estimated 14,000 single-parent families will benefit). The measure applies from the 2026 tax year (tax returns filed in 2027).
The incentives for making payments by electronic means will be extended to 2027. This means that 30% of expenditure paid electronically to specified professionals, up to €5,000 a year, can be deducted from individuals’ taxable income. Spending on medical services will count twice towards the requirement to cover 30% of annual actual income through electronic payments.
The income tax exemption for tips voluntarily received by employees from customers of the business will rise from the current monthly limit of €300 to €6,000 a year from the 2026 tax year.
Income support
The payment to pensioners will rise to a net €400 and become a permanent measure from November 2026, covering all pensioners over the age of 65 (an additional 270,000 people will qualify, bringing the total to 2.2 million). The same amount will be paid to pensioners over 60 who receive only a survivor’s pension, people with disabilities and uninsured elderly people.
A Christmas bonus of €500 gross will be paid to public employees and officials from 2027. It will be paid on a separate payroll statement on 16 December each year. Beneficiaries who have not been paid for the full year will receive a proportionate amount based on the period for which they were paid. The bonus will count as regular earnings and be pensionable.
Disability benefits paid by OPEKA and e-EFKA will be indexed to GDP and inflation from 1 January 2027.
The birth grant for large families will increase by an additional €1,000 for each child. At present, families with four or more children receive €3,500, with no further increase for each additional child. The grant will rise to €4,500 for four dependent children, €5,500 for five, €6,500 for six, and so on. The measure applies to children born from 1 January 2026 and is expected to benefit about 2,500 large families a year.
Measures to address the housing shortage
The ENFIA property tax will be abolished from 2027 in settlements with up to 2,000 residents, or up to 2,200 in Western Macedonia. The measure covers 131 additional settlements and about 62,000 additional property owners.
Property transfer tax on homes will increase from 1 July 2027 for individuals who are not tax residents of the European Union or the European Economic Area.
The tax exemption for vacant properties that are rented out will be extended for 2027.
The suspension of Article 41 of the Income Tax Code, which provides for a capital gains tax on transfers of real estate, will be extended for 2027.
The VAT exemption for new buildings will be extended for 2027.
The income tax reduction for expenditure on building upgrades will be extended for 2027.
Incentive to move to and remain in the Municipality of Megisti. An incentive will be introduced in the form of annual financial support of €5,000, increased by €1,000 for each dependent minor in the household and funded by the state budget. It will be available to single-person and multi-person households whose members either live permanently in the Municipality of Megisti or move their main residence there. To receive the annual support, beneficiaries must remain in the municipality or move their main residence there for at least one full year.
Creation of an investment account (savings pot) for the next generation
An Individual Investment Account for Minors (A.E.L.A.) will be established as a dedicated long-term savings account aimed at building assets for young people, encouraging long-term saving and promoting financial literacy. The main provisions are:
- For every child born in Greece, or who becomes eligible for an account under the conditions set out in this Part, the person with parental responsibility or custody may open one unique A.E.L.A.
- The process of setting up an A.E.L.A. is initiated when the person with parental responsibility or custody applies to a provider, provided the child has not yet reached the age of two at the time of the application.
- Those with parental responsibility or custody may choose freely between one of the providers and managing the A.E.L.A. themselves.
- The Greek state will contribute an amount equal to 100% of the eligible contributions paid into each beneficiary’s A.E.L.A., up to a maximum of €1,200 per calendar year. This maximum will increase by 10% every five years.
- Total contributions to each A.E.L.A. may not exceed €10,000 per calendar year.
- The state contribution will generally be paid monthly on contributions of up to €100 a month. As higher amounts may be paid in some months and lower amounts in others, a year-end reconciliation will be carried out for all contributions made by 31 December of the relevant calendar year.
- A.E.L.A. funds may be invested only in eligible financial instruments and investment products (bonds, mutual funds and shares). High-risk and complex financial products are excluded.
- An A.E.L.A.’s investments may have a conservative, balanced, growth or dynamic profile. Each provider must offer at least one product for each investment profile with a capital guarantee mechanism. If the person with parental responsibility or custody does not choose an investment strategy, the default option will be a long-term investment product with a conservative profile and guaranteed capital.
- A.E.L.A. services or products may be provided by credit institutions, investment firms and insurance companies. A beneficiary may transfer their A.E.L.A. from one provider to another without losing any tax benefits or other rights associated with the account.
- A.E.L.A. funds — contributions, the state contribution and investment returns — may not be withdrawn before the beneficiary reaches the age of 18. Exceptions apply in the event of the death of a parent or the child, and in cases where the A.E.L.A. beneficiary has serious health problems requiring surgery, as certified by a public hospital. When the beneficiary turns 18, the A.E.L.A. becomes their personal asset.
- Contributions to an A.E.L.A. are tax-free, do not count as taxable income for the minor beneficiary and are not taken into account when calculating eligibility for social benefits based on income or other criteria. Income from dividends, interest and capital gains on the transfer of securities held in an A.E.L.A. is tax-exempt.
Other provisions
Supplementary State Budget for the 2026 fiscal year: The national component of the National Public Investment Programme will be increased by €300 million to fund measures to promote energy autonomy and resilience, as well as infrastructure projects.
Remuneration paid to company board members and executives from profit distributions will be taxed at 15%, up from 5%, on amounts exceeding €60,000.
Pension provisions for the “small public sector” will be amended to address specific issues:
- Parents will be eligible for a pension if their child, a uniformed officer, dies as a result of a terrorist act or a violent crime committed against them because of their position. Until now, this applied only if the officer died while performing a duty involving increased risk, and as a result of that duty.
- The non-reduction of survivor pensions on account of employment, already applied to widow’s pensions, will also apply to special categories of pensioners covered by the public sector’s special pension scheme and falling under the remit of the General Accounting Office of the State. These categories include recipients of war pensions and, in particular, people injured while performing their duties and as a result of them. The measure covers about 340 cases and takes effect on 1 September 2026.