Calculate income tax and EFKA contributions for Greek sole traders. See taxable income, progressive tax from 9% to 44%, and total net income after all deductions.
Enter your annual net business income (after expenses) to see income tax, EFKA contributions, and your take-home as a Greek sole trader.
Net Annual Income
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EFKA contributions
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Total deductions
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Your breakdown
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How sole trader tax works in Greece
Greek sole traders pay both income tax and EFKA social contributions on their net business income. Unlike companies (which pay 22% flat), individuals face progressive rates that rise steeply above 40,000 EUR. This makes the corporate structure more attractive above a certain profit threshold, particularly when combined with the 5% dividend tax on distributions.
Example calculation
A sole trader earns 30,000 EUR net. EFKA contributions: 30,000 x 13.87% = 4,161 EUR. Taxable income: 25,839 EUR. Income tax: (10,000 x 9%) + (10,000 x 22%) + (5,839 x 28%) = 900 + 2,200 + 1,635 = 4,735 EUR. Tax credit: 0 (income above 20,000 EUR). Net income: 30,000 - 4,161 - 4,735 = 21,104 EUR. Effective rate: approximately 29.7%.
Tips and considerations
If your net profit consistently exceeds 30,000-40,000 EUR, incorporating as an IKE or EPE may reduce your total tax burden through the 22% corporate rate plus a 5% dividend tax, compared to the 36-44% marginal rates on personal income. Always consult a Greek tax adviser before changing structure.
Frequently asked questions
How is a sole trader taxed in Greece?
A Greek sole trader (atomiki epiheirisi) is taxed as an individual under the progressive income tax schedule of Law 4172/2013. Net business income, after deducting legitimate business expenses, is added to any other personal income and taxed at rates of 9% on the first 10,000 EUR, 22% from 10,001 to 20,000 EUR, 28% from 20,001 to 30,000 EUR, 36% from 30,001 to 40,000 EUR, and 44% above 40,000 EUR. A tax credit of up to 777 EUR applies for incomes below 20,000 EUR and phases out completely by 20,000 EUR. Additionally, sole traders must pay EFKA social contributions on their declared income, calculated as a percentage of their income tier.
What EFKA contributions does a sole trader pay in Greece?
Self-employed individuals and sole traders in Greece contribute to EFKA at differentiated rates depending on income tier, but the combined rate is broadly equivalent to the employee-side total of 13.87% (covering main pension 6.67%, supplementary pension 3.5%, health 2.55%, and unemployment 1.15%). New to the profession in the first two years may benefit from lower introductory rates. There is also a minimum contribution based on the minimum assumed income, so even zero-income years carry a floor contribution. Total annual EFKA costs for a sole trader earning 30,000 EUR would be approximately 4,161 EUR.
Can a Greek sole trader deduct EFKA contributions from income tax?
Yes. EFKA contributions paid by a sole trader are deductible from gross income before computing the income tax base. This reduces the effective total burden slightly. For example, a sole trader with 30,000 EUR gross business income pays 4,161 EUR in EFKA, leaving a taxable income of 25,839 EUR. The progressive tax on that reduced base is lower than it would be on the full 30,000 EUR. This mirrors the treatment for employed persons, where the employee's EFKA deduction is automatic.
Is there a minimum tax for sole traders in Greece?
Greece has provisions for a minimum presumed income for self-employed individuals under the alternative minimum tax rules (tekmaria). AADE may challenge declared income that appears too low relative to living standards, lifestyle indicators (car ownership, property, travel), and sector benchmarks. If declared income falls below the presumed income threshold, tax is calculated on the higher presumed amount. This system, known as antikeimenikes dapanes, is intended to combat under-reporting but can also catch genuinely low-income sole traders who must then provide documentary evidence to rebut the presumption.