Greece is moving forward with the abolition of the ‘business levy’ for thousands of employees who are salaried however they are paid through freelance contracts, as announced by the country’s economic team.
As of next year, around 25,000 workers with ‘freelance contracts’, and the self-employed will be exempt from paying the 400-500 euros business levy, regardless of their income or its amount.
This applies to individuals working for up to three employers, who are taxed as employees and benefit from a tax deduction, although they are not allowed to deduct business expenses to reduce their taxable income or declare losses like the self-employed.
This year the self-employed paid a reduced levy of 325 euros instead of 650 euros, thanks to a 50% discount that applied only to those under the presumptive taxation system, which does not include salaried workers with freelance contracts, for whom the levy will cease to exist entirely from 2025 regarding the 2024 income.
However, the business levy will continue to be applicable to specific legal entities with different charges.
Legal entities conducting commercial business with headquarters in tourist areas or cities with populations under 200,000 will continue to pay 800 euros annually, while for those doing business in cities with populations over 200,000 will pay 1,000 euros annually.
Branch offices that are established by a sole proprietor will incur a levy of 300 euros each, and 600 euros if established by a legal entity conducting commercial business.
What is more, small businesses and professionals with gross revenue up to 2 million euros, who have increased or will increase their full-time staff by at least 3/12 compared to the previous year, will be exempt from the levy.
