Greece prepares economic package with pension hikes and tax relief

The Greek government is finalizing a major economic package of measures, with final decisions depending on a fiscal space estimated between 1.8 and 2 billion euros. The plan includes significant adjustments for pensioners, employees, and businesses.

For approximately 2.5 million pensioners, a pension increase of 2.6% is expected starting in 2027, with changes becoming visible in December 2026 payments. Additionally, the mechanism for the “personal difference” (prosopiki diafora) will be fundamentally altered for 670,000 retirees, allowing them to receive their full annual pension increase while the existing difference is paid separately without further adjustments.

For businesses and the self-employed, the package explores several tax reliefs. These include a potential reduction in tax advance payments—lowering them to below 40% for the self-employed and 50%-55% for legal entities—to improve liquidity. Other measures under consideration include the abolition of the occupation fee, a gradual reduction of the corporate tax rate to 20% over the next four years, and a reduction in employer social security contributions by approximately 170 million euros.

Other measures include potential increases to permanent allowances for pensioners and adjustments to the Retiree Solidarity Contribution (EAS).