Greece introduces six-year machinery depreciation and tax relief for farmers

New legislative measures in Greece aim to accelerate agricultural investments by shortening the depreciation period for eligible mechanical equipment. Starting in 2027, investments in machinery will be depreciated over six years instead of the previous ten-year period. The new schedule sets depreciation rates at 10%, 10%, 15%, 15%, 25%, and 25% for each of the six years.

This change allows farmers to recognize a larger portion of their purchase costs as tax expenses in the initial years, thereby reducing taxable profits and immediate tax burdens. For example, a €100,000 tractor purchased in 2027 would see €75,000 in cumulative depreciation by the end of the fifth year under the new rules, compared to only €50,000 under the old system.

Additionally, the legislation provides tax relief for primary farmers, proposing a 0% tax rate on income up to €20,000 starting from the 2026 tax year, with declarations filed in 2027. While the tax depreciation period is being reduced, the threshold for replacing equipment under subsidized improvement programs remains at 12 years.