Self-Employed Tax in Greece

Greece taxes self-employed individuals (eleftheroi epaggelmaties) and sole traders under the Income Tax Code (Law 4172/2013) using the same progressive personal-income-tax scale that applies to employment income. For income earned in tax year 2025, net business profit is taxed at 9% on the first 10,000 euros, 22% on the next 10,000 euros, 28% on the next 10,000 euros, 36% on the next 10,000 euros, and 44% on anything above 40,000 euros. Law 5246/2025 introduced a revised scale effective from tax year 2026 onward that extends the top bracket to above 60,000 euros and adds family-size adjustments, but the 9-44% span is preserved. Social security contributions to e-EFKA are paid separately on top of income tax and are partially deductible when computing taxable income. Before filing, self-employed individuals should consult a qualified tax professional to confirm the brackets and deductions applicable to their specific situation.

What is the minimum presumptive taxable income (tekmarto eisodima)?

Law 5073/2023, effective from tax year 2023, introduced a minimum presumed net income for all self-employed persons and sole traders. Under Articles 28A-28D of the Income Tax Code (as amended), the Greek tax authority (AADE) determines a floor income from three components: (a) at least the annualised monthly minimum wage - 10,680 euros for 2024 based on the 890-euro monthly minimum, increasing 10% after the first six years of activity and a further 10% after each subsequent three-year period, capped at 30,000 euros; (b) 10% of total annual wage costs paid to employees, capped at 15,000 euros; and (c) 5% of the amount by which the individual's annual turnover exceeds the average turnover for their tax-activity-code sector. The combined presumptive floor cannot exceed 50,000 euros per year. If declared net income falls below the calculated floor, income tax is assessed on the higher presumptive figure. The presumptive floor does not apply during the first three years of activity. In the fourth year it is reduced by 67%, in the fifth year by 33%, and from the sixth year onward the full floor applies. A 50% reduction is also available for professionals operating in settlements of fewer than 1,500 inhabitants. [Source: AADE income categories guide and Eurofast 2025 analysis.]

How can the presumptive income floor be challenged?

The presumptive income figure is rebuttable. A self-employed taxpayer may file an application with AADE requesting an audit of actual business records if they believe genuine income is below the calculated floor. Grounds recognised by law include: serious illness or hospitalisation during the year, military service, imprisonment, natural disaster affecting business premises, revocation of a professional licence, documented business seasonality, operational prohibition by public authority, or other force majeure circumstances. The audit examines accounting books, receipts, bank records, and evidence of reduced activity. Where the audit confirms lower actual income, the presumptive assessment is overridden. This challenge route means the tekmarto operates as a starting presumption rather than an irrebuttable minimum - but the burden of proof rests with the taxpayer. Engaging a qualified tax professional is recommended before submitting a challenge application.

What happened to the annual trade fee (telos epitidevmatos)?

The trade fee (telos epitidevmatos) was an annual flat levy charged to all registered self-employed individuals and sole traders simply for maintaining a business registration, regardless of income. For self-employed individuals in urban centres the fee reached up to 1,000 euros per year. Law 5073/2023 first reduced the fee to 325 euros for sole traders subject to the new presumptive-income regime (a 50% cut). The Greek government then abolished the levy entirely for freelancers and sole traders with effect from 2025, meaning self-employed individuals registered in tax year 2024 or later owe no annual trade fee. The levy continues to apply to legal entities (companies) and branches in tourist areas or larger cities at 800-1,000 euros. The abolition removes a fixed overhead cost that had applied even to low-revenue new entrants.

How does EFKA social security work for the self-employed?

Self-employed individuals in Greece pay social security contributions to e-EFKA (the unified national insurance fund) through a fixed category system rather than a percentage of declared income. Each year before 31 January, a freelancer selects an insurance category for that calendar year; the selection automatically renews if no change is submitted. For 2026, six standard categories carry total monthly contributions of approximately 251 euros (Category 1), 301 euros (Category 2), 361 euros (Category 3), 433 euros (Category 4), 519 euros (Category 5), and 676 euros (Category 6). Contributions cover primary pension, supplementary pension, and health insurance. New professionals in their first five years of business activity may opt into a reduced new-entrant category at approximately 150 euros per month, set at roughly 60% of the Category 1 rate. Contributions are adjusted annually in line with inflation and the national minimum wage. EFKA contributions paid during the year are partially deductible against taxable income on the annual return. Amounts above are approximate; the exact figures for each year are published by the Ministry of Labour in the Government Gazette.

What is the 50% income-tax reduction for new freelancers?

Article 15 of the Income Tax Code (Law 4172/2013) provides that individuals starting business activity for the first time on or after 1 January 2013 benefit from a 50% reduction in the tax rate applying to the first income bracket for each of the first three years of activity, provided their annual gross income from business activity does not exceed 10,000 euros. In practical terms, the standard 9% rate on the first 10,000 euros of net income is reduced to 4.5% for qualifying new entrants. This is a modest but meaningful relief for low-revenue start-up years. Separately, AADE also confirms that new self-employed individuals are exempt from the annual business levy for the first five years of operation. A related provision under Article 69 of the Income Tax Code reduces the advance pre-payment obligation by 50% in the first tax year of business activity (see below).

How does the 55% advance pre-payment of tax operate?

Greek self-employed individuals are required to pre-pay a portion of the following year's estimated income tax at the time of filing the current year's return. Under Article 69 of the Income Tax Code the advance payment equals 55% of the income tax liability determined for the current tax year (after deducting any withholding tax already paid). This advance is offset against the actual tax assessed in the following year's return, with any excess credited or refunded. For first-year businesses the advance is reduced to 27.5% (50% of the standard 55%) to reduce cash-flow pressure at start-up. The advance payment is due in eight equal monthly instalments beginning the month after the annual return is filed, which typically runs from March to July of each year.

For a full picture of how these rules interact with your individual situation - including deductible expenses, VAT registration, myDATA electronic invoicing obligations, and the AADE challenge procedure for presumptive income - consult a qualified tax professional registered with the Greek Economic Chamber (Oikonomiko Epimelitirio Ellados). The Greece country overview covers residency rules and other jurisdiction-level details. Rates and thresholds are updated annually; always verify current figures with AADE or a licensed Greek tax accountant before filing.