Stricter rules for self-employed
Presumed minimum income of 10,920 euros to come with an incentive in terms of fees
The government announced on Tuesday that as of this year self-employed professionals will be presumed to earn a minimum of 10,920 euros, which under certain conditions will reach €50,000, and will be taxed accordingly through the declarations to be submitted in 2024.
Minister of National Economy and Finance Kostis Hatzidakis and his deputy, Harry Theoharis, stated that this is a fair system of taxation of the self-employed in the spirit of corresponding regulations that apply in advanced EU countries.The new system has as its reference point the minimum salary, considering that a self-employed person cannot have an income lower than an employee paid the minimum wage, while providing for a more favorable status for young professionals for the first five years of their activity, the disabled and inhabitants of small islands and settlements.
With the changes, around 473,000 professionals who currently declare very low incomes will each pay an average of €1,444 in tax. According to ministry data, the taxable income is expected to increase from €7.78 billion today to €13.35 billion, which means that an additional €5.567 billion will be declared.
As the minister mentioned, with the measure’s application “we estimate we will have a significant disclosure of tax evasion, which will lead to a significant increase in the state’s revenues from the taxation of the self-employed, by €874 million, while the final amount after the abolition of the fee [for practicing a profession] will be €606 million.” It is noted that with the new system the welfare allowances received by professionals will be reduced by €100 million.
At the same time, the fee for practicing a profession is reduced for those who declare taxable incomes that are 50% above the presumptive income, while for all the rest the reduction will come to 25%. The fee is currently maintained for businesses.
Theoharis also explained the presumed income of the self-employed will vary depending on their years of activity.
