Introduction
Prime Minister Kyriakos Mitsotakis announced a €2.2 billion package of measures for 2027 on Saturday during his speech at the 90th Thessaloniki International Fair.
Here are the 7+1 most important measures.
Private-sector employees
The minimum wage will rise to €1,000 gross (€1,300 with seniority increments) by January 2028, when a new method for calculating it will take effect.
Social security contributions will be cut by a further 0.5 percentage points (0.25 for employers and 0.25 for employees) from April 2027. Together with the increase in the minimum wage to more than €950 gross, this will benefit 2.5 million workers.
Examples:
Public-sector employees
A permanent Christmas allowance of €500 gross (€41.70 gross/month) will be introduced from December 2027 for around 720,000 public-sector employees.
Salaries will also increase by €80/month gross from April 1, 2027, to January 2028 as a result of the increase in the minimum wage.
Examples:
Pensioners
The annual allowance will increase by €100 (€8.33/month), from €300 last year to €400 this year. It is tax-free, cannot be seized and is not subject to deductions.
This is an annual payment rather than a permanent pension increase and will cover around 2.2 million pensioners. It will be paid in November 2026.
The main requirement is that pensioners must have turned 65* by December 31, 2025, and be receiving a final main pension.
Around 473,700 pensioners under 65 are excluded, although those receiving disability pensions are not.
Housing
The property transfer tax on home purchases by non-EU citizens, such as those from China, Turkey and Israel, will increase fivefold, from 3% to 15%, in an effort to curb large-scale property purchases.
For example, on a property worth €200,000, the tax will rise from €6,000 (3%) to €30,000 (15%).
The ENFIA property tax will be abolished from 2027 in settlements with up to 2,000 residents, up from 1,500, and in settlements with up to 2,200 residents in Western Macedonia, up from 1,700.
A new €2 billion “My Home 3” programme will also be introduced.
Businesses
The business levy* will be abolished in regions outside Attica in 2026, reduced by 50% in Attica in 2028 and fully abolished in 2029.
Advance tax payments will be reduced by 5% a year from the 2028 tax year until they reach 50%, down from 80% today.
A total of €1.5 billion will be transferred from the Recovery Fund to the Development Bank for small and medium-sized businesses, with €1.1 billion for loans and €400 million for guarantees.
An additional tax imposed on all professionals.
Self-employed workers
Taxable income presumptions will be reduced for tax-compliant self-employed workers. From 2026, they will no longer face increases based on turnover (+5%) or staff payroll costs (+10%).
For example, a self-employed worker with turnover of €30,000 and no employees who exceeds the average turnover for their business category is currently charged an additional 5% on the difference.
This will be abolished, and they will be taxed on the basis of imputed income.*
This is calculated based on the minimum wage (€11,620 for a basic salary of €830) and adjusted according to the number of years the business has been operating and whether it has employees.
Farmers
The income tax rate on earnings of up to €20,000 will be reduced to zero for professional farmers from the 2026 tax year.
The minimum tax-free threshold will increase by €13,571 to €22,204.
Examples:
Minimum wage calculation from 2028
From January 1, 2028, the minimum wage will be calculated using an automatic mathematical formula.
The formula will use data from the Hellenic Statistical Authority (ELSTAT) and will be based on two main factors:
The minimum wage will not be allowed to fall, and the traditional process of negotiations to determine the annual minimum wage will be abolished.
