Salaried employees remain the “wealthiest” Greeks according to the analysis of data from the 2024 tax returns (income earned in 2023).

Freelancers now occupy the second position, mainly due to the change in their taxation method (imputed income) rather than because they declared higher incomes, with retirees slightly trailing behind.

The total additional revenue collected by the state from the new taxation method in 2024, compared to 2023, amounts to approximately 440 million euros.

One of the most notable conclusions is that all categories of taxpayers declared higher income, except for freelancers taxed on their imputed income.

It is also noteworthy that only 263 individuals contested the tax assessment, which represents just 0.006% of those subject to imputation.

According to sources from the Ministry of Finance, the results of the tax assessments indicate that the new law on freelancer taxation has introduced a fairer tax distribution system and succeeded in broadening the tax base.

From this year’s tax filings, there is an increase in income for salaried employees, retirees, and freelancers. However, freelancers covered by imputation reported lower incomes this year compared to last year, while those exceeding the imputed threshold reported higher incomes.

Specifically:

• Taxpayers subject to imputation declared an average annual income of 3,215 euros (268 euros per month).
• Taxpayers not subject to imputation declared an average annual income of 15,013 euros (1,251 euros per month).

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

• Salaried employees: 16,470 euros.
• Freelancers: 13,901 euros.
• Retirees: 13,333 euros.

It is worth noting that the declared incomes do not cover the existing living expenses for freelancers, unlike salaried employees and retirees. The imputed taxation shows that the average imputed living expenses for entrepreneurs are 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 euros surpass salaried employees, whose average tax amounts to 1,816 euros.

In detail:

• The average tax for freelancers subject to imputation is 1,733 euros.
• The average tax for freelancers exceeding the imputed threshold is 3,423 euros.

The average total burden, including the business levy (which has been reduced by 50%), amounts to 1,733 euros plus 325 euros (business levy), totaling 2,058 euros for those subject to imputation, and 3,748 euros (3,423 euros + 325 euros) for those exceeding it.

Compared to 2023, the average tax for freelancers under imputation according to the previous system was 595 euros plus a 650-euro business levy, totaling 1,245 euros. Therefore, the average additional tax amounts to 813 euros annually.

The additional tax freelancers who are not subject to imputation are required to pay is 147 euros, accompanied by a total income increase of 277 million euros.

According to sources from the Ministry of National Economy and Finance, with the forthcoming abolition of the business levy, the average tax for freelancers covered by imputation will be 1,733 euros, which is 83 euros less than that of the average salaried employee.

It is worth noting that before the new law was passed, 71% of freelancers declared income below the minimum wage. At the same time, 4% of freelancers (just 29,000) paid 50% of the taxes due for the category, while 172,000 freelancers paid less than 500 euros in taxes annually.

Few Contested the Imputation

It is also noteworthy that, despite the objections raised by many to the new taxation method for freelancers, very few proceeded to contest it, as they were entitled to do.

The data shows that 4,357 individuals from 401,072 (1.08%) subject to Article 28A expressed an intention to contest the imputation, out of a total of 712,649 entrepreneurs (0.61%).

However, out of these, very few freelancers ultimately submitted a formal challenge to the imputation. Through the special application for Article 28A, 366 submissions were made for paragraph 3 (challenge for objective reasons) and 263 submissions for paragraph 4 (challenge with a request for audit), proving that there are no significant instances of injustice under the new system.

Sources from the Ministry commented on the results of the tax returns, stating that the new taxation method for freelancers represents a fairer taxation system. After many years, salaried employees and retirees will pay lower taxes than freelancers, without the latter being excessively burdened compared to previous years.