The government’s economic team went on to present the details of the measures, focusing on their scale, who qualifies, the timeline, and how they will be applied.

Minister Kyriakos Pierrakakis presented the plan, which sets the income tax rate at 0% for full-time farmers earning up to €20,000.

Under the plan, the income tax rate drops to zero for amounts up to €20,000 for those classified as full-time farmers, meaning individuals who earn more than 50% of their income from farming activity. The measure follows the same model already applied to people under 25 and to large families. The tax cut will take effect from the 2026 tax year, covered in the 2027 tax returns.

The tax cut aims both to boost farmers’ incomes and to keep current producers working in the agricultural sector. It also aims to attract new farmers, with the goal of increasing agricultural output.

Currently, income from farming for those who qualify as full-time farmers, meaning individuals earning more than 50% of their income from farming (245,907 people), is taxed separately using the salaried workers’ tax scale.

Of the 245,907 full-time farmers above the tax-free threshold, 47,091 will see a tax reduction. With the rate cut to zero, the threshold for a farmer with no children rises from €8,633 to €22,204. These roughly 47,000 farmers report about 56% of total farm income, €850 million out of €1.5 billion. The maximum benefit reaches €2,900.

The measure is expected to cost the state budget €87 million in its first year and €56 million per year from 2028 onward.

Examples:

A farmer with no children earning €15,000 a year used to pay €1,183 in tax, which is now reduced to zero.

A farmer with two children earning €20,000 a year used to pay €1,540 in tax, also now reduced to zero.

A farmer with no children earning €30,000 a year used to pay €5,083 in tax and will now pay €2,183, a benefit of €2,900.