“Basket” ΔΕΘ: Greek authorities are preparing a package of tax breaks for 2027

The Greek government is preparing a package of new permanent measures for 2027 for the September ΔΕΘ. The financial headquarters talks about a reserve of about 1 billion euros, but the final list of benefits has not yet been approved.

The Greek government is starting to prepare for the traditional propaganda event at ΔΕΘ – where Prime Minister Kyriakos Mitsotakis is due to present a package of new permanent measures for 2027.

For now we are not talking about ready-made solutions, but about set of scenarios. The Ministry of National Economy and Finance should select proposals from various departments, evaluate their costs and present several options to the Prime Minister after the summer period.

The political challenge is obvious: to distribute possible benefits among as many groups as possible. The government is focusing on the self-employed, small and medium-sized businesses, employees, families with children, pensioners, property owners and legal entities.

What’s already being discussed

Among the most frequently mentioned measures are reduction of advance payment of income tax for enterprisescancellation τέλος επιτηδεύματος (fixed annual business tax in Greece), additional reductions in insurance premiums, changes in income taxation and investment incentives for companies.

It remains a separate direction housing policy: tax mechanisms for long-term rentals, support for affordable housing and measures that should increase household disposable income. But none of these positions have yet been considered finalized.

Facilitation options for business actually appear in economic publications: reduction of advance tax, adjustment of company taxation are discussed and abolition of τέλος επιτηδεύματος for legal entities. However, the parameters, timing and range of recipients may change before September.

Why are they talking about 1 billion euros?

The estimate is linked to the government’s calculations for additional fiscal space. In the spring, a reserve of about 1.2 billion euros was discussed at the economic headquarters: approximately 200 million euros could be used for support measures as early as 2026, and another about 1 billion euros for permanent decisions related to 2027.

Minister of National Economy and Finance Kyriakos Pierrakakis in June statedthat there will be space for new support measures, but the specific amount and structure of the package are still being discussed.

The government binds the possible expanding the package with revenues from tourism, consumption, digital control tools and combating tax evasion. But the final scope of measures will depend on how sustainable budget revenues turn out to be, and not just on a successful first half of the year.

What the Bank of Greece recommends

The Bank of Greece (Rather the “Troika” of creditors behind it) proposes not to disperse additional funds into large one-time payments. Priorities include targeted support for the most vulnerable households, permanent tax and insurance relief that primarily reduces the burden on labor, and investment incentives that can increase company productivity.

The Central Bank emphasizes that permanent easing requires a stable tax base, reducing the VAT gap and further limiting the shadow economy. Published in June Bank of Greece forecast expects the economy to grow by 2% in 2026, but at the same time points to the need to maintain budget discipline.

Who can win

• Self-employed and small businesses — if the tax prepayment is reduced and certain fees are cancelled.
• Companies — when changing income taxes, insurance premiums and investment deductions.
• Employees – with new reductions in insurance premiums and adjustments to the income scale.
• Families and renters — if the package includes housing and income support measures.
• Property owners — when extending or adjusting incentives for long-term rentals.

But for now this is not a list of approved benefits, but a list of directions. Between the phrase “the measure is being discussed” and the line in the law usually lie August, the calculations of the Ministry of Finance, European rules and the traditional ability of the budget to spoil any pre-election optimism.

What happens next

The ministries must prepare the first calculations by August. Kyriakos Pierrakakis will then present alternative options to Kyriakos Mitsotakis. Final decisions are expected in September, during ΔΕΘ.

The main thing for citizens: For now, you should not perceive possible measures as already taken. To date, the process of preparing the package and the availability of budget space have been confirmed, and not the specific amount of savings for each taxpayer.

One step forward and two steps back

This commentary contains the author’s assessment of economic policy and may not coincide with the opinion of the editors.

Every September around ΔΕΘ a familiar picture appears. Government announces tax relief, support for families, incentives for business, further measures against high prices. On paper everything looks neat: They reduced the tax a little, reduced the contributions a little, gave some benefits, and compensation to others.

The problem is that there is a huge difference between the beautiful table of the Ministry of Finance and the life of the family, which is usually written small print. There are rent, groceries, electricity, gasoline, utilities, child expenses, medications, bank fees and prices that rise faster than a person can notice the next “relief.”

State can reduce income tax for several hundred euros per year. But if during this time expenses for housing, food and services have increased, the citizen will not become richer, because he still This reduction will be returned by increasing taxes through rising prices.

As a result, a familiar Greek paradox appears: the budget shows a surplus, tax revenues are growing, the authorities are talking about new relaxations, and a person with a regular salary is increasingly wondering whether there will be enough money until the end of the month. The economy may be growing statistically, but the standard of living is not measured by the GDP graph. It is measured by whether a family can calmly pay rent, buy food, get treatment, raise children and not live in a constant state of economic anxiety.

That is why the ΔΕΘ “basket” should not turn into an annual showcase of small benefits that sound beautiful on stage, but dissolve into inflation before the New Year. What is needed is measures that change the structure of spending: affordable housing, real pressure on prices, reductions in indirect taxes on basic goods, income growth that outpaces the cost of living, and conditions under which young people will not perceive emigration as the only sensible career plan.

Because otherwise it turns out to be a classic story: they did step forwardthey announced a relaxation, the prime minister took a photo with ΔΕΘ, and then a resident of Greece does two steps backWhen he receives his electricity bill, he pays his rent and goes to the supermarket.

Everything can be beautiful on paper. But, as in the old formula, they forgot to talk about ravines.

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