Calculate withholding tax on professional fees in Greece 2026. Payments to freelancers and professionals are subject to 20% withholding at source by the payer.
Enter the gross professional fee to see the 20% withholding tax deducted by the payer, the net amount received, and the VAT on top of the fee.
Net received by professional
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Withholding tax (20%)
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VAT collected
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Total invoice to client
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Cash received (fee + VAT - WHT)
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Your breakdown
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How withholding tax on professional fees works in Greece
When a Greek company or public entity pays a freelancer or self-employed professional, it must withhold 20% of the fee and remit it directly to AADE. The professional receives the net fee plus the VAT, and the 20% withheld is recorded as a tax prepayment. At year end, the professional's actual income tax (calculated at the 5-bracket rates on net profit) is reduced by the total amounts withheld during the year.
Example: 5,000 EUR fee with 24% VAT
Gross fee: 5,000 EUR. VAT (24%): 1,200 EUR. Total client payment: 6,200 EUR. Withholding: 20% of 5,000 EUR = 1,000 EUR (deducted from fee by client). Net received by professional: 4,000 EUR fee plus 1,200 EUR VAT = 5,200 EUR. The 1,000 EUR withholding appears as a tax credit on the professional's annual return.
Managing cash flow with withholding tax
Withholding reduces immediate cash flow for the professional. If your annual income tax (at 5-bracket rates) is lower than 20%, you will receive a refund. For example, a freelancer with 30,000 EUR net profit owes about 5,340 EUR income tax. If 20% was withheld on all their invoices (6,000 EUR), they would receive a 660 EUR refund. Keeping track of withholding certificates issued by each client helps verify that the credits are correctly applied on your annual return.
Frequently asked questions
What is the withholding tax rate on professional fees in Greece?
Under Article 64 of the Greek Income Tax Code (Law 4172/2013), payments of professional fees to freelancers and self-employed service providers are subject to a 20% withholding tax at source. This means the payer (typically a company or public entity) deducts 20% from the gross fee before paying the professional. The withheld amount is remitted to AADE on behalf of the professional and is credited against that professional's annual income tax liability. If the total annual income tax is less than the total withheld, the excess is refunded. The 20% rate applies to services including consulting, legal, accounting, medical, and technical services.
Does withholding tax fully satisfy the professional's tax obligation?
No. The 20% withholding is a prepayment, not a final tax. The professional must still file an annual income tax return (E1 form on Taxisnet) declaring all professional fee income along with other income. The actual income tax is calculated at the progressive rates (9% to 44%) on net profit. The 20% withheld is then credited against the final tax bill. If the withholding exceeds the final tax due, AADE issues a tax refund. If the final tax exceeds the withholding, the professional pays the difference. Annual income tax can differ significantly from the 20% flat withholding rate.
Does withholding apply to VAT on professional fees?
No. VAT (FPA) is charged separately on top of the gross professional fee and is not subject to the 20% withholding tax. Only the net fee (ex-VAT) is subject to 20% withholding. For example, a 1,000 EUR professional fee plus 240 EUR VAT (24%) totals 1,240 EUR from the client. The payer withholds 20% of the 1,000 EUR base (200 EUR) and pays the professional 800 EUR plus 240 EUR VAT = 1,040 EUR. The 240 EUR VAT is remitted by the professional to AADE separately. The 200 EUR withholding is also remitted by the payer to AADE.
What categories of professional fees are subject to the 20% withholding?
The 20% withholding applies to a broad range of professional service fees paid to self-employed individuals in Greece: legal services (lawyers), accounting and auditing services, medical and dental services, engineering and architectural services, technical consulting, IT consulting, management consulting, research, and similar activities listed in the professional activity codes (KAD). Payments from individual consumers (B2C) are generally not subject to withholding; it applies primarily to business-to-professional (B2B) payments and payments by public sector entities. Sole traders selling goods rather than services may not be subject to this withholding.