Freelancing in Greece: Tax & EFKA Guide 2026

Getting Started: Registering as a Freelancer

To work as a freelancer (eleutheros epangelmatias) in Greece, you need to register with the tax authority (AADE) and obtain a tax registration number (AFM) if you don't already have one. The process involves visiting your local DOY (tax office) or completing the registration online through the myAADE platform. You'll need to declare your professional activity using the appropriate KAD (activity code) that matches your work — whether that's software development, translation, consulting, design, or any other freelance service.

Once registered, you'll also need to sign up with EFKA (the unified social security fund) for health insurance and pension coverage. This is mandatory — there's no opting out of social security in Greece, even if you have private insurance.

EFKA Insurance Categories for 2026

As a freelancer in Greece, you don't pay EFKA contributions as a percentage of income like employees do. Instead, you choose from six insurance categories, each with a fixed monthly contribution. This system was introduced in 2020 and gives freelancers flexibility to manage their cash flow. For 2026, the categories range from approximately €250/month (Category 1) to €650/month (Category 6). New freelancers in their first five years of activity automatically start in Category 1.

Your EFKA contributions cover three pillars: main pension (primary insurance), supplementary pension (ETEAEP or TEKA), and lump-sum benefit. All three are included in your monthly payment. The contributions are fully tax-deductible, reducing your taxable income.

How Freelancer Income Tax Works in 2026

Starting from tax year 2025 (filed in 2026), a major change took effect: freelancer and sole proprietor income is now taxed on the same progressive scale as employment income. The separate business income scale has been abolished. This means your freelance income is taxed at:

• 9% on the first €10,000 of taxable income
• 22% on income from €10,001 to €20,000
• 28% on income from €20,001 to €30,000
• 36% on income from €30,001 to €40,000
• 44% on income above €40,000

On top of income tax, freelancers pay a solidarity contribution (which has been suspended for employment income but may still apply in certain cases) and must make advance tax payments equal to 55% of the previous year's tax liability. This advance payment is offset against your final tax bill.

Deductible Expenses: What You Can Write Off

One of the biggest advantages of freelancing is the ability to deduct business expenses from your gross income. In Greece, the following expenses are generally deductible:

Office & workspace: Rent for a dedicated office, coworking memberships, or a proportional share of your home if you use a dedicated room for work. Utilities (electricity, internet, phone) can be partially deducted based on professional use.

Equipment & technology: Computers, monitors, software subscriptions, phones, and other tools necessary for your work. Items over €1,500 may need to be depreciated over several years rather than deducted in full.

Professional services: Accountant fees, legal fees, professional training, certifications, and memberships in professional chambers.

Travel & transportation: Business travel expenses, fuel costs (with limits), and vehicle maintenance if you use a car for work. Keep detailed logs.

EFKA contributions: Your monthly social security payments are fully deductible from your taxable income.

VAT Obligations for Freelancers

If your annual gross revenue exceeds €10,000, you're generally required to charge and remit VAT at 24% (the standard rate). Some services qualify for reduced rates of 13% or 6%. If you provide services to businesses in other EU countries, the reverse charge mechanism applies and you don't charge VAT. Freelancers with revenue under €10,000 may qualify for the small business VAT exemption regime, meaning you don't charge VAT but also can't reclaim VAT on purchases.

Electronic Invoicing with myDATA

Greece has implemented the myDATA (Digital Accounting and Tax Application) system, requiring all freelancers to transmit their invoices electronically to AADE in real-time. You can either use compatible invoicing software or the free AADE platform to issue invoices. Each invoice must include your AFM, the client's AFM, the service description, amount, VAT, and the appropriate income classification code. Keeping your myDATA books up to date is critical — discrepancies between your declared income and transmitted invoices will trigger audits.

Quarterly Tax Obligations

Unlike employees who have taxes withheld monthly, freelancers must manage their own tax payments. Key deadlines include:

• VAT returns: Filed quarterly (or monthly for larger businesses) through TAXISnet
• Income tax advance: Paid in installments starting from July after filing your annual return
• EFKA contributions: Due monthly, typically by the last business day of each month
• Annual tax return: Filed between March and June of the following year through TAXISnet
• E3 form: Business income statement filed alongside your E1 personal tax return

Practical Example: Freelancer Earning €40,000/Year

Let's say you earn €40,000 gross as a freelancer in 2026. With €5,000 in deductible business expenses and €3,000 in annual EFKA contributions (Category 1), your taxable income is €32,000. Your income tax would be approximately: €900 (9% on first €10K) + €2,200 (22% on next €10K) + €2,800 (28% on next €10K) + €720 (36% on remaining €2K) = €6,620. Add the advance tax payment and EFKA, your effective tax rate is around 24% of gross income — leaving you approximately €30,380 net.

Tips for Greek Freelancers

1. Get an accountant: A good logistis costs €50-150/month but will save you far more in properly structured deductions and avoiding penalties.

2. Keep all receipts: The myDATA system means AADE can cross-reference everything. Digital receipt tracking apps are your friend.

3. Consider an IKE: If you earn above €50,000, forming a single-member IKE (private company) may be more tax-efficient due to the flat 22% corporate rate.

4. Build a tax reserve: Set aside 30-35% of every payment you receive for taxes and EFKA. Don't spend it.

5. Use electronic payments: Greek taxpayers must spend at least 30% of their income via electronic means (cards, bank transfers) to avoid a 22% penalty on the shortfall.