Calculate net income from a freelance invoice in Greece. See 24% VAT, income tax, EFKA contributions, and your actual take-home from any invoice amount.
Enter your freelance fee (net of VAT) to see the full invoice amount, VAT collected, and your actual take-home after income tax and EFKA contributions.
Invoice Total (incl. VAT)
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VAT (FPA 24%)
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Approx. income tax on fee
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EFKA on fee
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Take-home from fee
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Your breakdown
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How freelance invoicing works in Greece
Greek freelancers issue invoices through the myDATA electronic system. The invoice must show the net fee, the FPA rate (usually 24%), and the gross total. The client typically deducts 20% withholding tax from the net fee and pays that directly to AADE on the freelancer's behalf. The freelancer then receives the net fee minus the 20% withholding, and reconciles this against their annual tax return.
Example calculation
A freelance consultant sends an invoice for 5,000 EUR net. VAT (24%) = 1,200 EUR, so the gross invoice is 6,200 EUR. The client withholds 20% of 5,000 = 1,000 EUR and pays the freelancer 5,200 EUR (net fee 5,000 minus 1,000 withholding, plus 1,200 VAT). The freelancer then owes the remaining income tax and EFKA on the annual return, crediting the 1,000 EUR already withheld.
Tips and considerations
Set aside at least 30-35% of each net fee for EFKA and income tax. The withholding your client deducts is only a portion of your total liability. Use myDATA-compliant invoicing software from day one to avoid penalties.
Frequently asked questions
Do Greek freelancers charge VAT on their invoices?
Most freelancers (eleftheri epaggelmatiai) in Greece who are VAT-registered must add 24% FPA to their invoices. The client pays the gross amount including VAT, and the freelancer remits the VAT portion to AADE through periodic VAT returns. The 24% VAT is not income for the freelancer; it passes through to the tax authority. Freelancers with annual revenue below 10,000 EUR can apply for the small business VAT exemption scheme, in which case they do not charge VAT but also cannot reclaim input tax on their purchases. Most professional freelancers exceed this threshold quickly and should be VAT-registered.
How is withholding tax applied to freelance invoices in Greece?
Greek clients paying invoices to freelancers are required to withhold income tax at source in most cases. For freelance professional services (doctors, lawyers, engineers, architects, consultants, etc.), the withholding rate is typically 20% of the net fee. This withholding is credited against the freelancer's final annual income tax bill. If the withheld amount exceeds the actual tax liability, the freelancer receives a refund when they file their annual tax return. The withholding applies to the net fee (excluding VAT), not the gross invoice total.
What is the advance tax payment rule for Greek freelancers?
Freelancers and self-employed individuals in Greece must pay an advance tax (prokatavoli forou) equal to 100% of the previous year's income tax. This advance is paid in two instalments, typically in July and December. The purpose is to smooth the collection of tax from variable-income self-employed workers. For new freelancers in their first year of operation, the advance tax rate is 55% of the first year's tax. The advance paid is credited against the following year's final tax liability. This creates a cash-flow challenge for growing businesses because they effectively pay tax on the current year's income while also prepaying next year's tax.
Can Greek freelancers deduct home office expenses?
Yes, subject to documentation and proportionality rules. A freelancer working from home can deduct a proportionate share of rent or mortgage interest, utilities, and internet costs based on the percentage of the home used exclusively for business. AADE requires that the home office be a defined, separable workspace and that the deduction be supported by actual expense receipts in myDATA. The deduction is typically calculated as (business area / total home area) multiplied by total eligible expenses. In practice, Greek tax advisers recommend keeping this at no more than 20-30% of total home costs to avoid scrutiny, and the deductible amount must be declared in the income tax return.