Μake us preferred on Google The measures announced by the prime minister at the Thessaloniki International Fair (TIF) are being brought before Parliament’s plenary session for a vote Thursday.
Among other provisions, the Finance Ministry’s bill includes the creation of individual investment accounts for minors, a €400 payment for pensioners over 65 and a Christmas bonus for public-sector employees. It also incorporates the government’s proposal to reduce the value-added tax (VAT) rate on menstrual products from 24% to 13%.
PASOK to Vote “Present”
The bill is not expected to receive the support of all political parties. PASOK, for example, has announced that it will vote “present” on the bill as a whole, while supporting the provision on menstrual products. However, the party’s position, shared by its headquarters on Charilaou Trikoupi Street in Athens, is that the VAT rate should be reduced to zero.
SYRIZA takes a similar position and will also vote “present.”
The Investment Account and VAT Cut
The Individual Investment Account for Minors will be opened upon application by a child’s legal representative before the child turns 2. The state will contribute an amount matching eligible private contributions, up to €1,200 per beneficiary annually.
For example, if a family contributes €600 in eligible payments over the course of a year, the state will add another €600.
The funds will be invested in eligible financial products and, as a general rule, can be withdrawn once the child reaches adulthood.
The VAT reduction from 24% to 13% applies to menstrual products and adult incontinence diapers. It is scheduled to take effect on Jan. 1, 2027.
Who Will Pay Less Tax
Starting with the 2027 tax year, the income tax rate will be reduced to zero on income of up to €20,000 for people with three dependent children. Salaried employees in this category will see the difference in the tax withheld from their paychecks starting in January.
A similar tax break is expected for professional farmers who earn at least 50% of their income from agricultural activities. For them, the measure applies to income earned in 2026 and will be reflected in tax returns filed in 2027.
Also starting with the 2026 tax year, the annual tax-exempt threshold for tips will rise to €6,000. Under certain conditions, the measure will also cover delivery workers who collaborate with digital platforms.
For self-employed professionals, the changes concern surcharges applied to the minimum imputed income — the minimum amount of income the tax authorities presume a taxpayer earns for tax purposes. Surcharges linked to turnover and payroll will no longer apply to those who meet all the requirements for tax and labor compliance, submit their records to the myDATA digital tax reporting platform and have connected their point-of-sale (POS) terminals to their cash registers.
The 50% reduction in imputed income will also be extended to settlements with populations of up to 2,000, and up to 2,200 in Western Macedonia.
From the 2027 tax year, the advance tax payment for sole proprietorships will be reduced from 55% to 50%.
For companies, the business levy will be abolished from 2026 outside the Attica region and in the Islands regional unit of Attica. In the rest of Attica, the levy will be cut in half in 2027 and abolished in 2028.
What Changes for Salaries and Benefits
Starting April 1, 2027, the unemployment insurance contribution deducted from private-sector employees’ salaries will be reduced from 1.20% to 0.70%, increasing their take-home pay.
In the public sector, the annual Christmas bonus will be set at €500 gross, with the first payment scheduled for Dec. 16, 2027. Employees who have worked for only part of the year will receive a proportional amount.
Beginning this November, the annual financial support payment will increase from €300 to €400, while eligibility will be expanded.
For pensioners over 65, income and property criteria will be abolished. The payment will also cover, among others, people over 60 who receive only a survivor’s pension, people with disabilities and uninsured elderly people.
From 2027, certain disability benefits will be adjusted using the same rate applied to pension increases.
The birth grant for a fourth child will rise to €4,500, with an additional €1,000 for each subsequent child. The increase will apply retroactively to births from Jan. 1, 2026.
ENFIA, Rents and Property Transfers
As part of the housing measures, the exemption from ENFIA, Greece’s annual property tax, will be extended from 2027 to primary residences with a taxable value of up to €400,000 in settlements with populations of up to 2,000, or up to 2,200 in Western Macedonia, subject to the exceptions specified in the bill.
The possibility of receiving a three-year tax exemption will be extended through the end of 2027 for property owners who make homes available for long-term rental after they had been left vacant or used for short-term rentals.
The suspension of the capital gains tax on property transfers will also be extended, as will the suspension of VAT on newly built properties covered by the relevant regime.
Starting July 1, 2027, the property transfer tax on home purchases by individuals whose tax residence is outside the European Union and the European Economic Area will increase from 3% to 15%, subject to the exceptions provided for in the legislation.
