Greece’s government is finalizing a comprehensive package of economic measures ahead of the Thessaloniki International Fair (DETH) in September 2026. The total value of the announced interventions is estimated at no less than €1.7 billion, targeting key areas including taxation, pensions for retirees and wage earners, self-employed professionals, farmers, and housing policy.
Focus on freelancers and the self-employed
A central pillar of the package centers on freelancers and self-employed individuals — a group of over 400,000 professionals with annual net income exceeding €10,000 expected to benefit directly. Reforms under discussion include adjustments to the current ‘deemed income’ (tekmario) system and a reduction in advance income tax payments. These changes aim to ease the tax burden starting in 2027 for sole proprietorships earning above €10,000 annually.
Tax relief for the self-employed will vary depending on income level, age, and family status — reaching up to €3,300 per year. For large families, benefits could climb as high as €5,300. Additionally, a preferential tax regime is being prepared for young professionals aged 30 and under.
Overhauling the deemed income system
A major reform currently under development concerns how ‘deemed income’ is calculated. The government is exploring a new model that links a professional’s actual tax compliance behavior more closely to their final taxable income determination. Factors such as timely payment of taxes and social security contributions, proper use of digital tools — including the myDATA platform, electronic invoicing, POS systems, electronic delivery notes, and the volume of electronic transactions — may all serve as criteria to reduce deemed income assessments.
The goal is to rely more heavily on real-time, verified data held by the Independent Authority for Public Revenue (AADE), thereby reducing reliance on assumptions. The more complete and accurate the picture of turnover, expenses, and transactions, the less need there will be for arbitrary deemed income calculations.
Other proposed adjustments to the deemed income framework include:
- Decoupling deemed income from the statutory minimum wage;
- Reducing the weight given to annual payroll costs;
- Expanding social and geographic exemptions;
- Simplifying the process for challenging deemed income assessments.
Lowering advance tax payments
The package also includes plans to lower advance income tax payments. Currently, small businesses pay 55% of their estimated annual tax liability upfront, while larger firms face rates as high as 80%. A reduction would improve short-term liquidity — especially for smaller enterprises navigating cash flow constraints.