Insurance premiums via e-EFKA and tax app for freelancers in Greece.
Insurance premiums via e-EFKA
Until Friday, January 31, 2025, around 1.2 million self-employed individuals, freelancers, and farmers in Greece were invited to select their insurance class for 2025.
This year, they will experience a 2.7% increase in their contributions. Historically, a significant majority, about eight out of ten professionals and farmers, opt for the lowest insurance category, which allows them to pay reduced contributions at the expense of their future pensions.
Consequently, after 40 years of work, approximately 80% of freelancers and farmers will receive pensions of less than €1,000 due to choosing lower insurance classes.
Most self-employed individuals, including those in creative fields such as graphic design, web development, and digital marketing, continue to select these low categories, as they find it challenging to afford higher contributions.
This pattern is particularly evident among freelancers in vibrant cities like Athens and Thessaloniki, where the cost of living adds pressure.
Under the current pension model, to receive a pension exceeding €1,000 (gross), freelancers must be enrolled in at least the third insurance category. For pensions greater than €900, registration in at least the second category is required.
Conversely, to achieve a pension over €1,500, monthly contributions must surpass €642.
For the first insurance category, the total contributions due this year are €238.23, of which €175.83 is allocated for pension insurance. In the second category, the total contribution amounts to €285.88, with a pension contribution of €211.
The electronic platform of e-EFKA was available only until the end of the last month for those self-employed individuals wishing to adjust their insurance brackets.
Those who do not make any changes will automatically retain their insurance classification from the previous year. This retention approach impacts many freelancers, including those involved in sectors like e-commerce, SEO, and programming, who might not be fully aware of their obligations.
The January assessments will feature increased amounts for various professionals insured under former organisations like OAEE (Ode to Self-Employed) or ETAA (Former Insurance Fund for Lawyers).
Self-employed individuals need to stay informed about their contributions and tax responsibilities, especially concerning Value Added Tax (VAT) applicable to their services.
Tax App for Freelancers
The myDATAapp, introduced by the Independent Authority for Public Revenue (AADE), is set to enhance the financial management of freelancers and businesses in Greece.
This mobile application is readily accessible on both iOS and Android, enabling users to issue and transmit documents such as invoices directly to the myDATA platform. It includes features for customer management and offers extensive financial analytics.
Key functionalities of the app include:
- 24/7 invoicing: Users can create and send invoices at any time, allowing for flexible business operations.
- Statistical reporting: The app provides detailed insights into income and expenses, assisting users in tracking their financial health.
- Customisation options: Users can select their preferred language, either Greek or English, and use dark mode for more comfortable viewing in low-light environments.
The app prioritises data security with advanced protections, including PIN codes and biometric recognition.
Before using myDATAapp, businesses must create accounts using the AADE’s timologio web application.
This initial setup requires entering company details, setting up invoice categories, and defining the products or services on offer.
Once these steps are completed, individuals can download the app and begin issuing documents immediately.
AADE Governor Giorgos Pitsilis highlighted the app as a “strategic ally for businesses,” claiming it enhances productivity and aids in tax compliance.
Finance Minister Kostis Hatzidakis emphasised that myDATAapp significantly contributes to tackling tax evasion while streamlining business processes.
By allowing real-time invoicing and direct interaction with the Greek tax system, it modernises essential financial tasks.
This app sets a new benchmark for efficiency, transparency, and compliance in the private sector of Greece.
More information on this innovative solution can be found in the article about smart tax compliance.
Frequently Asked Questions
How is the tax structure designed for freelancers in Greece?
Freelancers in Greece must navigate a specific tax system that includes income tax obligations. These individuals pay taxes based on their earnings and are required to register with the tax authorities.
It’s crucial for freelancers to keep accurate records of their income and expenses to ensure compliance.
What are the requirements for working as a freelancer in Greece?
To freelance legally in Greece, one needs to obtain a Tax Identification Number (AFM) and register as self-employed.
Knowledge of VAT requirements and social security contributions is also necessary to operate within the legal framework.
How can freelancers discover job openings in Greece?
Freelancers often use various methods to find job opportunities.
Networking through local events, joining professional groups, and leveraging social media platforms can help connect with potential clients.
Some may also seek out referrals from existing networks or colleagues.
Which job platforms are favoured by freelancers in Greece?
Several platforms cater to freelancers looking for work.
Popular choices include global sites like Upwork and Fiverr, along with local options that provide access to Greece-specific job listings.
These platforms enable freelancers to showcase their skills and attract clients.
What pricing should freelancers in Greece consider for their services?
Setting competitive rates requires freelancers to evaluate the market and their own expertise.
They should consider factors such as industry standards, the complexity of the work, and their level of experience when determining their fees.
What obstacles do freelancers in Greece encounter?
Freelancers in Greece face various challenges. These include navigating the tax system, managing inconsistent income, and securing reliable clients.
Additionally, the local economic climate may impact demand for freelance services, adding pressure to their business operations.
