Who benefits from Greece’s Thessaloniki package: tax cuts, allowances and a savings fund for young people

A €2.2 billion package unveiled by Kyriakos Mitsotakis at the Thessaloniki International Fair combines tax relief, income support and new benefits for a wide range of groups. It also includes a savings fund for the younger generation and a third round of the “My Home” housing programme.

The measures will take effect in stages. Some will appear in November and December but be reflected in 2027 tax assessments. Others will affect salaries from next April, while additional provisions will roll out through 2030. The total cost is expected to reach €3.5 billion by then.

For self-employed professionals, the tax imputation system will be reduced for those who comply fully with POS and myDATA requirements and have no tax violations. The imputed income will also be cut by 50% for those operating in settlements with up to 2,000 residents, and in Western Macedonia settlements with fewer than 2,200 residents. From 2027, the advance tax payment for self-employed workers will fall to 50%, from 55% today.

Businesses will see the advance tax rate for legal entities begin falling in 2028 by five percentage points a year, from 80% to 50%. The business levy will be abolished from the 2026 tax year for companies based outside the Attica region, except on the islands. In Attica, it will be cut by half in 2028 and abolished completely in 2029.

The government also plans to direct €1.5 billion from the Recovery Fund to the Hellenic Development Bank, including €1.1 billion for lending tools and €400 million for guarantees. Depreciation for business modernisation costs will be shortened from 10 years to six. Profit distributions to board members exceeding €60,000 will face a 15% tax rate, up from 5%. The package also includes support for private-sector workers, pensioners, civil servants, families with three or more children and people with disabilities.