Greece Announces 2.8 Billion Euro Package of Tax Cuts

Prime Minister Kyriakos Mitsotakis outlined a comprehensive economic package presented at the Thessaloniki International Fair (TIF). The measures target income enhancement, family support, regional development, energy cost reduction, and investment attraction.

The total interventions reach 2.8 billion euros, aiming to benefit approximately 2.2 million beneficiaries including pensioners, employees, farmers, and businesses. Over a 15-month horizon until the end of 2027, the total benefit for households and businesses is estimated at 3.5 billion euros.

“Agreement of Progress and Prosperity with a horizon toward the Greece of 2030.”

Corporate tax advance payments will gradually decrease from 80% to 50%, while the trade tax is abolished, alongside 1.5 billion euros allocated for small and medium-sized enterprises. For freelancers, the tax advance drops to 50%, and compliant professionals are exempt from objective criteria surcharges.

Pensioners over 65 will receive a permanent annual support of 400 euros. For farmers, income tax is zeroed up to 20,000 euros, and the minimum wage is set to gradually increase to 1,000 euros by 2028.

In the housing sector, the 'Spiti Mou' program is established with a budget of 2 billion euros, alongside the abolition of property taxes in small settlements. Energy measures target a 30% reduction in wholesale electricity prices, with residential charges dropping by 50% starting in January.

Rental support includes double rent refunds on September 25, 2026, for regional doctors, nurses, and teachers, followed by general rent refunds on November 30, 2026. Income criteria for renters are expanded, raising the single limit to 25,000 euros and married limit to 35,000 euros.