Greece unveils €884 million tax relief package and wage increases at 90th TIF

Tax relief for self-employed professionals

Greek Prime Minister Kyriakos Mitsotakis announced revisions to the presumptive taxation framework for independent professionals at the 90th Thessaloniki International Fair. The measures eliminate two specific surcharges that previously increased taxable income for tax-compliant sole proprietorships: the 10% charge on annual payroll expenditure and the 5% charge on turnover exceeding the activity code average. The Independent Authority for Public Revenue estimates that compliance criteria cover over 90% of self-employed workers. Approximately 155,000 professionals will benefit directly from these adjustments starting with their 2026 earnings, reflected in 2027 tax filings. For example, a catering establishment operating for 15 years with five employees and an annual payroll of €105,000 will see its presumptive base drop from €27,244 to €16,744, lowering its annual tax liability from €4,783 to €2,249.

Targeted relief for rural zones and sector rules

The reform package includes targeted adjustments for specific professional categories and geographical zones. Taxi operators will have presumptive income calculated strictly according to their ownership share, meaning a 50% vehicle owner is taxed on half the baseline. In addition, minors under 18 who inherit taxi operating licenses are fully exempt from presumptive assessments. Advance income tax for sole proprietorships will fall from 55% to 50% starting in tax year 2027. For regional communities with populations up to 2,000 residents, the presumptive income requirement is cut by 50%, an exemption ceiling extended to 2,200 residents in Western Macedonia.

Minimum wage trajectory and public sector pay

The government established a multi-year schedule for statutory wage increases and social benefit adjustments. The gross minimum wage in the private sector, currently set at €920 per month (€797 net for workers under 25 and €772 net for those over 30), will rise to €960 on 1 April 2027. A subsequent increase in January 2028 will bring the gross baseline to at least €1,000 per month (€871 net under 25 and €831 net over 30). Seniority allowances will scale alongside the baseline, reaching €1,100 gross for one three-year tier, €1,200 for two tiers, and €1,300 for three tiers. Public sector baseline salaries will link directly to these private sector adjustments starting in April 2027, yielding annual salary gains exceeding €900 for civil servants.

Fiscal scope and structural tax reductions

The overall government policy package carries an estimated value of €2.2 billion for 2027, with total relief at full maturity reaching €3.5 billion to €5 billion across market liquidity and fiscal support. Tax reductions taking effect in 2027 tax declarations total €884 million. Of this sum, €535 million stems from existing legislation under Law 5246/2025, comprising €402 million from adjusted income tax brackets, €90 million from intermediate rental tax rates, and €43 million from exemptions on foundations and bequests. The remaining €349 million represents newly announced core measures, including €170 million dedicated to presumptive tax modifications. Agricultural producers and three-child families also receive a zero-tax threshold on annual income up to €20,000 starting in January 2027.