How will the 2027 tax reforms benefit self-employed professionals?
The primary mechanism for relief in 2027 involves a dual approach: the reduction of presumptive income and the introduction of a more favorable tax scale. For many of the 155,000 professionals expected to benefit, the most immediate change comes from the removal of surcharges that previously increased their taxable base. These surcharges were calculated as 10% of annual payroll costs and 5% of the difference between a business's actual turnover and the average turnover for its specific professional category (KAD).
Furthermore, professionals earning a net income above €10,000 will see a reduction in their overall tax liability due to the new tax scale, which features lower rates across the brackets. These changes are intended to be reflected in the tax settlements for the 2026 income year, which will be processed during the 2027 tax season. The legislative framework for these adjustments is expected to move toward parliamentary approval shortly.
The shift in presumptive income structures
While the surcharges are being eliminated, it is important to note that the core structure of the presumptive income system remains intact. The minimum taxable base will still be calculated based on the minimum wage, adjusted according to the number of years the professional has been active in their field. This ensures that while certain inflationary or turnover-based surcharges are removed, a baseline of taxation persists for all active practitioners.
What are the requirements to qualify for tax relief?
To secure these tax benefits, "consistent" professionals must meet several strict compliance criteria. The relief is not automatic for all; it is specifically designed to reward those who maintain high standards of digital and administrative transparency. Failure to comply with these specific mandates will result in the loss of the right to the reduced tax rate.
The mandatory requirements for professionals include:
- Digital Integration: All necessary data must have been submitted to the myDATA platform for the relevant tax year.
- Transaction Transparency: Professionals obligated to use cash registers and POS (Point of Sale) terminals must have completed the integration process and remained connected throughout the entire tax year.
- Clean Regulatory Record: The individual must not have been issued any fines by the Tax Authority or the Labor Inspection Authority regarding their operations over the previous five tax years.
- Filing Compliance: All VAT and income tax returns for the last five tax years must have been submitted by the December 31st deadline of the most recent tax year, provided the professional was legally obligated to file them.
Which specific groups will see the largest tax reductions?
The 2027 reforms target several distinct demographics, ranging from young entrepreneurs to those operating in geographically disadvantaged areas. By tailoring the relief to these groups, the policy seeks to encourage professional continuity and support specific sectors of the economy.
Young professionals and families
Age-based incentives are a cornerstone of the new policy. Professionals up to the age of 25 are entirely exempt from income tax on earnings up to €20,000. For those in the 26-30 age bracket, the tax rate for the income bracket between €10,001 and €20,000 will be reduced to 9%. Additionally, parents will benefit from significant deductions based on the number of children they have. For instance, professionals with one child can see savings between €200 and €2,000, while those with three children may see reductions ranging from €650 to €3,300, depending on their total income level.
Geographic and sectoral adjustments
The reforms also provide relief based on location and occupation. The 50% reduction in presumptive income for professionals in small settlements is being expanded. The threshold for these settlements is increasing from 1,500 inhabitants to 2,000 inhabitants, excluding the Attica region (with the exception of the Islands Regional Unit). In Western Macedonia, the threshold for this benefit is even higher, reaching 2,200 inhabitants. Furthermore, taxi operators will see their presumptive income limited according to their ownership percentage of the vehicle; for example, a 50% co-owner will only be taxed on half the presumptive amount. Notably, minors under the age of 18 who hold taxi licenses are entirely exempt from presumptive taxation.
How does the new tax scale impact net income?
The implementation of the new tax scale represents a structural shift for professionals with higher earnings. By lowering the coefficients within the tax brackets, the government aims to prevent the "bracket creep" that often occurs when inflation or turnover increases push professionals into much higher tax tiers without a corresponding increase in real purchasing power.
For those earning above the €10,000 threshold, the impact will be felt most clearly during the 2027 settlement period. The combination of a lower base (due to the removal of the 10% payroll and 5% turnover surcharges) and a lower rate on the remaining income creates a compounding effect of savings. This is particularly relevant for established professionals who have historically faced higher burdens due to their business scale or long-standing presence in the market.
Frequently asked questions
Who is eligible for the 2027 tax relief?
Eligibility extends to over 155,000 professionals, specifically including young entrepreneurs (under 30), parents, taxi operators, and those working in small settlements. To qualify, "consistent" professionals must also meet strict digital filing and compliance standards regarding myDATA, POS systems, and a clean record with tax and labor authorities.
How much can a professional with children save?
Tax benefits for parents vary by the number of children and total income. Those with one child can save between €200 and €2,000. For two children, the relief is between €300 and €2,400, while parents with three children may see savings from €650 up to €3,300.
Does the presumptive income system disappear?
No, the basic framework of the presumptive income system remains in place. The minimum taxable base will still be calculated using the minimum wage, adjusted for the number of years the professional has been practicing their trade. The reform primarily removes specific surcharges rather than the entire system.
What are the new rules for taxi operators?
Taxi operators will see their presumptive income calculated based on their ownership stake in the vehicle. For example, a 50% co-owner is taxed on 50% of the presumptive amount. Additionally, taxi licenses held by minors under 18 are exempt from presumptive taxation altogether.
How do small settlement thresholds change?
The threshold for the 50% presumptive income reduction is expanding from settlements of 1,500 inhabitants to 2,000 inhabitants. This applies everywhere except Attica (excluding the Islands Regional Unit), though in Western Macedonia, the threshold is even higher at 2,200 inhabitants.
Key takeaways
- Over 155,000 self-employed individuals are expected to benefit from the 2027 tax reforms.
- The 50% presumptive income reduction now applies to settlements with up to 2,000 inhabitants.
- Young professionals aged 25 and under receive full tax exemption on income up to €20,000.
- Compliance with myDATA and POS integration is mandatory to qualify for these tax reliefs.
- Parents with three children may receive tax savings of up to €3,300.
Conclusion
The 2027 tax reforms represent a strategic effort to provide relief to a broad spectrum of the self-employed workforce. By targeting young professionals, families, and those in smaller communities, the policy seeks to foster economic stability and professional growth. However, the benefits are strictly contingent upon digital transparency and regulatory compliance. For the 155,000 professionals poised to benefit, the transition from the old surcharge-heavy model to a streamlined, lower-rate scale offers a significant opportunity for improved financial predictability in the coming years.
