The measures announced by the Greek Government in the context of the 90th Thessaloniki International Fair (TIF 2026) are expected to shape a new tax and investment environment for businesses and individuals, with potentially significant implications for taxation, liquidity and investment planning.

The announcements include measures extending through 2030 and cover, among others:

  • the reduction of tax prepayments for individuals and legal entities;
  • the gradual abolition of the business tax levy (τέλος επιτηδεύματος) for legal entities;
  • accelerated tax depreciation;
  • enhanced tax deductions for strategic investments;
  • taxation of high executive remuneration through profit-distribution arrangements; and
  • measures affecting real estate taxation.

Below, we highlight the key measures and consider their potential implications for businesses, investors and individuals.

Tax Prepayment

Self-employed individuals

From tax year 2027, the tax prepayment rate for individuals carrying out business activities will be reduced from 55% to 50%.

The measure is primarily intended to improve liquidity, as it does not affect the individual's final income tax liability. Instead, it reduces the amount prepaid against the following tax year, thereby releasing funds that can be used to support business activities.

Legal entities

From tax year 2028, the tax prepayment rate applicable to legal entities will be reduced by 5 percentage points per year, until it reaches 50%.

For banks, the tax prepayment rate will remain at 100%.

The gradual reduction is expected to provide a meaningful liquidity benefit, particularly for businesses experiencing growth, increasing profitability or significant investment requirements. Businesses should therefore assess the impact of the new rules on their tax and financial planning at an early stage.

Abolition of the Business Tax Levy for Legal Entities

The business tax levy (τέλος επιτηδεύματος) applicable to legal entities and personal businesses will be gradually abolished.

  • 2027: Full abolition for registered offices and branches located outside the Region of Attica, as well as in the Regional Unit of Islands.
  • 2028: 50% reduction in Attica.
  • 2029: Full abolition also in Attica.

The measure applies, among others, to Sociétés Anonymes (S.A.s), Private Companies (I.K.E.s) and other legal entities that remain subject to the business tax levy.

The abolition represents a further step towards reducing the tax and administrative costs of doing business in Greece.

Accelerated Tax Depreciation

Accelerated tax depreciation is proposed for investments in business machinery and equipment.

The depreciation period will be reduced from 10 years to 6 years.

The measure covers the acquisition or construction cost, as well as related expenditure for the improvement, renewal and reconstruction of machinery and equipment.

While the measure does not necessarily result in a permanent reduction in the overall tax burden, it allows businesses to recognize investment expenditure for tax purposes more quickly. This can improve the net present value (NPV) of investment projects and strengthen incentives for the modernisation of productive assets.

Enhanced Tax Deductions for Strategic Investments

A 100% enhanced tax deduction is proposed for investment expenditure in specific strategic sectors.

Indicative sectors include:

  • defence;
  • vehicle manufacturing;
  • aircraft manufacturing; and
  • aircraft components.

The measure could provide a significant tax advantage for qualifying investment projects, by allowing an additional deduction over and above ordinary tax depreciation .

Businesses operating in the relevant sectors should assess at an early stage whether their planned investments may qualify under the new framework and incorporate the potential tax incentives into their investment strategy.

Taxation of Profit-Distribution Arrangements

From 1 January 2027, remuneration received by:

  • members of Boards of Directors;
  • managers; and
  • employees,

in the form of profitdistributions by the legal entity, will be subject to a higher tax rate for the portion of annual remuneration exceeding €60,000.

The applicable rate will increase from 5% to 15%.

The change may have a significant impact on existing remuneration structures and executive incentive programmes. Companies should therefore consider reviewing their remuneration policies and incentive schemes ahead of the measure's effective date.

Real Estate Transfer Tax for Non-EU Buyers

From 1 July 2027, the transfer tax applicable to residential property acquired by citizens of non-EU countries will increase from 3% to 15%.

The measure may affect demand from non-EU buyers and could influence investment decisions in the residential real estate market, particularly in areas with significant international buyer activity.

Investors considering residential property acquisitions in Greece should take the proposed change into account when assessing the timing and overall cost of future investments.

New Measures Supporting Business Financing

Alongside the tax measures, two new financing instruments have been announced through the Hellenic Development Bank to support small and medium-sized enterprises (SMEs):

  • a €1.1 billion lending programme; and
  • a €400 million guarantee programme.

With the participation of the banking sector, the overall leverage effect is expected to generate approximately €5 billion of new financing for the real economy.

While these measures do not constitute tax incentives, they may create additional opportunities for businesses planning investments, expanding their activities or strengthening their capital structure.

Looking Ahead

The measures announced at TIF 2026 are primarily focused on strengthening business liquidity, encouraging investment and introducing targeted tax incentives across specific sectors and activities.

While several measures are expected to be introduced gradually, businesses should begin assessing their potential impact on tax planning, financing structures and future investment decisions.

Early planning may be particularly relevant where businesses are considering significant capital expenditure, changes to executive remuneration structures, investment in strategic sectors or real estate acquisitions by non-EU investors.

Our team supports businesses and investors in assessing the impact of tax developments, structuring and implementing investment projects, utilising available tax incentives and development programmes, and addressing complex corporate tax, restructuring and financing matters.

For further information, please contact our Tax Experts.

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