Greece is nearing the final stage of preparations for a new package of tax measures expected to be presented at the Thessaloniki International Fair, known as DEΘ, with the government weighing the size, timing and fiscal cost of the proposed relief.
The economic team is focusing on measures for small and medium-sized businesses, self-employed professionals, pensioners, middle-class workers and families with children. At the same time, the government is considering a surprise measure that could accompany Prime Minister Kyriakos Mitsotakis’ announcements.
This year’s Thessaloniki International Fair carries particular political significance, as it is expected to be the government’s final major economic policy announcement before the next elections and is likely to outline its broader economic strategy through 2030.
Tax cuts take center stage
Government spokesman Pavlos Marinakis has already signaled plans for further reductions in tax rates, with an emphasis on the middle class and families.
The key questions now concern not only which measures will be announced, but also how and when they will be implemented. Some interventions are expected to take effect directly in 2027, while others could form part of a broader plan for the next government term.
For small and medium-sized businesses and self-employed professionals, one of the main measures under consideration is a reduction in the advance tax payment.
Businesses could see lower advance tax payments
Companies currently face an advance corporate tax payment of 80%. The government is considering gradually reducing that rate, with an initial step to 70% seen as more manageable for the budget than an immediate reduction to 50%.
A gradual reduction would have two objectives: easing pressure on businesses’ liquidity while avoiding a sudden loss of government revenue.
For businesses, a lower advance payment would immediately leave more funds available for investment, wages, operating expenses and working capital.
Corporate tax rate could fall to 20%
The package also includes a possible further reduction in the corporate tax rate.
The main scenario calls for a reduction from 22% to 20%, provided that sufficient fiscal space is available.
The measure would aim to improve business competitiveness while signaling a further gradual reduction in the tax burden for the investment community.
A further reduction in social security contributions is also being considered. Such a measure would lower non-wage labor costs and create room for higher take-home pay.
Self-employed workers face changes to tax rules
A more complicated issue concerns the rules used to calculate presumed income for self-employed professionals.
The government does not appear to be considering abolishing presumed taxation altogether, but rather limiting its application as the tax administration gains greater access to information about taxpayers’ actual incomes.
Point-of-sale systems, IRIS instant payments, electronic accounting records, digital transactions and data cross-checks have significantly expanded the information available to Greece’s Independent Authority for Public Revenue, known as AADE, about professionals’ economic activity.
This could allow for a more targeted system in which tax compliance plays a greater role in determining how presumed-income rules are applied.
Under the approach being considered, a professional who consistently reports income, files returns on time, meets tax obligations and presents a consistent record in electronic transactions could gradually be treated differently from a taxpayer considered to pose a higher tax risk.
The critical issue will be defining the criteria clearly, including who qualifies as a compliant taxpayer and which data will be taken into account.
Pensioners could see higher disposable income
Pensioners are another key group targeted by the expected measures.
The government’s interventions are expected to focus on increasing disposable income so that annual pension increases are not offset by other financial burdens.
The so-called personal difference also remains an issue for some pensioners, limiting the benefit they receive from annual increases linked to the combination of economic growth and inflation.
Families with children in focus
Families with children are also expected to be among the main beneficiaries of the new tax measures.
The policy would continue changes announced at last year’s Thessaloniki International Fair, when Greece’s tax scale was adjusted according to the number of children.
For the 2026 tax year, income between €10,000 and €20,000 is taxed at 18% for taxpayers with one child, 16% for those with two children and 9% for those with three children. Families with four or more children pay no tax on their first two income brackets, covering income up to €20,000.
Further reductions in tax rates for families with children would represent a second step in a policy increasingly linking taxation to Greece’s demographic challenge.
The aim is to shift more family support from direct benefits toward a permanent increase in disposable income.
Two difficult fiscal calculations
Two major fiscal and tax calculations lie behind the government’s final decisions.
The first concerns the advance tax payment for businesses. The larger the reduction, the greater the immediate impact on government revenues. That is why a gradual reduction is considered easier to implement than an abrupt move to 50%.
The second concerns presumed-income rules for self-employed workers. The government wants to reduce their impact without abandoning a mechanism that has been used to combat tax evasion.
The expansion of electronic tax data allows the government to move from a broad, uniform system toward a more individualized approach. However, any change would require careful implementation to ensure that relief for compliant taxpayers does not create new opportunities for tax evasion.
Surprise measure and the road to 2030
An unresolved element of the package remains the potential surprise measure that the government’s economic team is still working on.
The final package will depend on available fiscal space and the budget’s capacity to absorb the measures. The government’s challenge is to combine meaningful tax relief with the preservation of fiscal stability.
The Thessaloniki International Fair is therefore expected to be about more than immediate tax cuts. With the event serving as the government’s last major economic announcement before the next elections, the measures are also expected to provide a broader outline of its economic planning through 2030.
