More than 400,000 self-employed workers in Greece earning over 10,000 euros annually are set to receive a triple tax relief starting with their 2027 returns.
The Greek government will implement income tax rate cuts passed last year alongside new measures to reform the imputed tax system and reduce advance tax payments.
According to the newspaper Eleftheros Typos, the lower tax brackets apply to income earned in tax year 2026 and will be reflected in declarations submitted in 2027 under Law 5246/2025, which was enacted in November 2025.
Greek Prime Minister Kyriakos Mitsotakis is expected to announce the additional changes to imputed tax calculations and advance tax payments at the 90th Thessaloniki International Fair next month.
The Thessaloniki International Fair is an annual trade exhibition held in northern Greece where government leaders traditionally outline economic policy priorities for the upcoming year.
Tax scale reductions under Law 5246
Individual sole proprietorships declaring net annual earnings above 10,000 euros now exceed 400,000 across Greece. Under paragraph 4 of article 3 of Law 5246/2025, annual tax savings for self-employed taxpayers over 30 years of age with up to three dependent children will range from 20 euros to 3,300 euros.
Self-employed parents of large families with four or more children will see their annual tax liability decrease by between 240 euros and 5,300 euros.
Tax rates of 22 percent, 28 percent, 36 percent, and 44 percent levied on income above 10,000 euros will drop by two to eight percentage points for taxpayers with up to three children.
For taxpayers with large families, the 22 percent tax rate on annual income between 10,000.01 euros and 20,000 euros will be eliminated entirely. The 28 percent rate on income between 20,000.01 euros and 30,000 euros will fall by 10 to 22 percentage points based on child count.
Young self-employed workers under 30 years old will benefit from even lower rate schedules designed to encourage early business creation.
Detailed breakdown by income bracket
Under the primary tax scale taking effect for tax year 2026, the lowest rate of 9 percent on annual income up to 10,000 euros remains unchanged, while rates for income between 10,000.01 euros and 60,000 euros will decrease.
For self-employed individuals without dependent children, rates will adjust as follows:
- Income between 10,000.01 euros and 20,000 euros drops from 22 percent to 20 percent.
- Income between 20,000.01 euros and 30,000 euros drops from 28 percent to 26 percent.
- Income between 30,000.01 euros and 40,000 euros drops from 36 percent to 34 percent.
- Income between 40,000.01 euros and 60,000 euros drops from 44 percent to 39 percent.
Taxpayers with one dependent child receive an additional two percentage point reduction on income between 10,000.01 euros and 40,000 euros compared to childless taxpayers. Taxpayers with two dependent children receive an additional four percentage point reduction on income between 10,000.01 euros and 30,000 euros.
For self-employed workers with three dependent children, the rate on income between 10,000.01 euros and 20,000 euros falls from 22 percent to 9 percent, while the rate on income between 20,000.01 euros and 30,000 euros drops from 28 percent to 20 percent. Higher brackets match the scale for childless taxpayers.
For families with four dependent children, the tax rate on the first 10,000 euros falls from 9 percent to zero, and the rate on income between 10,000.01 euros and 20,000 euros falls from 22 percent to zero. The rate on income between 20,000.01 euros and 30,000 euros drops from 28 percent to 18 percent.
For households with five or more children, the tax rate on income between 20,000.01 euros and 30,000 euros decreases by an extra two percentage points for each additional child beyond the fifth, with all other brackets matching the four-child scale.
Self-employed professionals up to 25 years old will pay zero tax on their first 20,000 euros of annual income, as both the 9 percent base rate and 22 percent second rate are reduced to zero. Professionals aged 26 to 30 will see the 22 percent rate on income between 10,000.01 euros and 20,000 euros reduced to 9 percent.
Four scenarios for imputed tax reform
In Greece, the imputed income system calculates minimum taxable income for self-employed professionals based on statutory benchmarks rather than reported earnings, aimed at combating tax evasion. The government economic team is considering four potential reform scenarios for tax year 2026, which may be implemented individually or in combination.
The first scenario involves decoupling minimum imputed income from automatic increases in the national minimum wage. Under current rules, minimum wage rises automatically elevate imputed income thresholds, creating higher tax burdens for roughly 360,000 professionals regardless of business turnover. The government is studying a cap or fixed base coefficient to prevent horizontal increases.
The second scenario addresses payroll cost rules that force an employer's imputed income upwards if staff are paid above minimum wage or have lengthy seniority. Business representatives have criticized the provision as a disincentive to wage growth and hiring, prompting proposals to curtail or eliminate the payroll surcharge.
The third scenario expands social and geographical tax exemptions while removing legacy bailout burdens. Authorities are considering raising the population threshold for a 50 percent tax discount or full exemption from communities of up to 1,500 residents to settlements of up to 3,000 residents to aid regional economies.
The fourth scenario aims to reform the procedure for challenging imputed income assessments. Requesting an audit currently requires exhaustive financial inspection, which taxpayers find deterrent. The proposed system would introduce a rapid, digital process operated by the Independent Authority for Public Revenue based on objective standards.
The Independent Authority for Public Revenue, known as AADE, operates as Greece's autonomous public body responsible for managing national tax administration and revenue collection.
Advance tax reductions and net impact
The government is also considering a substantial reduction in the advance income tax payment rate from the current 55 percent down to 27.5 percent.
If enacted alongside rate reductions and imputed income fixes, the advance tax cut will further lower final tax settlement amounts on 2027 tax assessment notices or eliminate tax liabilities altogether for more than 400,000 self-employed Greeks.
