Salaried employees remain the wealthiest Greeks, according to an analysis of the 2024 tax return data (for income earned in 2023).

Freelancers now rank second, mainly due to changes in their taxation method (presumptive income determination) rather than declaring higher incomes, with retirees following closely behind.

The total additional revenue collected by the state due to the new taxation method in 2024, compared to 2023, amounts to approximately €440 million ($728 million).

One of the most notable conclusions is that all taxpayer categories declared higher income, except for freelancers who were taxed based on their presumptive income.

It is also worth mentioning that only 263 individuals challenged the tax assessment results, representing just 0.006 per cent of those obligated to pay based on the presumptive system.

According to sources from the Ministry of Finance, the tax assessment results indicate that the new law on taxing freelancers has established a fairer tax distribution system and achieved a broader tax base.

The assessment of this year’s returns reveals an increase in income for salaried employees, retirees, and freelancers, according to AMNA.

However, freelancers covered by the presumptive system declared lower incomes this year compared to last, while those who exceeded the presumptive threshold declared higher incomes.

More specifically:

  • Taxpayers covered by the presumptive system declared an average annual income of €3,215 ($5,310) or €268 ($445) per month.
  • Taxpayers not covered by the presumptive system declared an average annual income of €15,013 ($24,830) or €1,251 ($2,070) per month.

Based on the income analysis of the three main categories (salaried employees, retirees, freelancers), the average declared income is:

  • For salaried employees: €16,470 ($27,240).
  • For freelancers: €13,901 ($23,000).
  • For retirees: €13,333 ($22,050).

It is worth noting that the declared incomes do not cover the existing presumptive living expenses for freelancers, unlike salaried employees and retirees.

The imposition of the presumptive taxation method suggests that the average presumptive living expense for business owners is decreasing, indicating that the calculated minimum income sufficiently covers living expenses.

Regarding the average tax, for the first time, freelancers with an average tax of €2,472 ($4,100) exceed salaried employees, whose average tax amounts to €1,816 ($3,000).

Detailed figures:

  • The average tax for freelancers covered by the presumptive system amounts to €1,733 ($2,900).
  • The average tax for freelancers exceeding the presumptive threshold amounts to €3,423 ($5,650).
  • The average total burden, including the business tax (which has been reduced by 50 per cent), amounts to €1,733 plus €325 (business tax), or €2,058 ($3,400) for those covered by the presumptive system, and €3,748 (€3,423 + €325 or $6,200) for those who exceed it.

In comparison with 2023, the average tax for freelancers covered by the presumptive system under the previous regime was €595 plus €650 business tax, totaling €1,245 ($2,060). Therefore, the average additional tax amounts to €813 annually ($1,350).

The additional tax that freelancers not covered by the presumptive system are required to pay amounts to €147 ($245), accompanied by a total income increase of €277 million ($460 million).

According to sources from the Ministry of National Economy and Finance, with the forthcoming abolition of the business tax, the average tax for freelancers covered by the presumptive system will amount to €1,733 ($2,900), which is approximately €83 ($140) less than that of the average salaried employee.

It is worth noting that before the enactment of the new law, 71 per cent of freelancers declared an income below the minimum wage. At the same time, 4% of freelancers (just 29,000 individuals) paid 50 per cent of the taxes attributable to the category, while 172,000 freelancers paid less than €500 per year in taxes (approximately $830).

Few challenge the presumptive system

It is also worth noting that, despite the opposition from some to the new taxation method for freelancers, very few proceeded to challenge it, as they were entitled to do.

Data show that 4,357 individuals out of 401,072 (1.08 per cent) subject to Article 28A expressed intent to challenge the presumptive system, out of a total of 712,649 professionals (0.61 per cent).

However, of these, only a few freelancers eventually submitted a request to challenge the presumptive system. Through the special application for Article 28A, 366 submissions were made for paragraph 3 (challenge on objective grounds), and 263 submissions were made for paragraph 4 (challenge with a request for audit), indicating that there are no significant injustices observed with the new system.

The results of the tax returns were commented on by the same sources from the Ministry, noting that the new method of taxing freelancers constitutes a fairer taxation system, as, after many years, salaried employees and retirees will pay less tax than freelancers, without the latter being excessively burdened compared to previous years.