Mitsotakis presents economic measures for 2027: 400 euros for pensioners, pay rises and tax relief

Greek Prime Minister Kyriakos Mitsotakis announced a new package of economic measures on Saturday evening, covering several categories, from pensioners and workers to farmers, families with children and businesses. The announcement was made during his traditional speech marking the opening of the 90th Thessaloniki International Fair.

The value of the package for 2027 is estimated at between 1.8 and 2 billion euros, while implementation of some of the measures will be phased in gradually through 2030. Starting on November 30 this year, pensioners over 65, people with disabilities and uninsured elderly people will receive a permanent annual allowance of 400 euros, or 100 euros more than at present.

Another decision provides for the reimbursement of part of the rent. On November 30, an amount equal to one month’s rent for 2025 will be returned. Meanwhile, doctors, nurses and teachers working in remote areas will receive support equivalent to two months’ rent.

In the private sector, the minimum wage will rise from 950 euros in April 2027 to 1,000 euros gross by January 2028. At the same time, employee contributions will be reduced by 0.5%. For the first time in more than a decade, civil servants will receive a gross Christmas bonus of 500 euros starting in December 2027. Their salaries will gradually increase by around 80 euros gross per month by the beginning of 2028.

Relief measures have also been planned for farmers. Professionals in the sector with annual incomes of up to 20,000 euros will be exempt from income tax. The same exemption will apply to families with three children and incomes of up to 20,000 euros, while families with four or more children will receive a higher birth bonus.

The “Savings for the New Generation” program will enable parents to deposit up to 1,200 euros per year into an account in their child’s name. The state will contribute the same amount, which cannot be withdrawn before the age of 18. At that point, the fund could exceed 60,000 euros and be used to start a business or for studies.

In the housing sector, the “My Home 3” program will be implemented with a fund of 2 billion euros. The government also aims to gradually reduce wholesale electricity prices by 30% by 2029.

To limit home purchases by foreign nationals, particularly in areas where prices and rents have risen significantly, the tax on the purchase of a home by citizens of countries outside the European Union, such as China, Turkey or Israel, will increase from 3% to 15%.

Another change will take effect in March 2027, when the ENFIA real estate tax will be abolished for homes in settlements with up to 2,000 residents. In Western Macedonia, the threshold will be up to 2,200 residents.

Mitsotakis described the package as part of the “growth dividend” of the Greek economy, at a time when the rising cost of living and purchasing power continue to be among citizens’ main concerns.