When digital nomads and remote workers look at relocating to Greece, they are usually obsessed with the famous Article 5C 50% Tax Break. While halving your income tax is incredible, there is a second, equally massive financial benefit that most expats completely overlook until they move: Greek Social Security (EFKA).
If you are a freelancer coming from countries like Germany, France, or Spain, social security contributions can be crippling. In Germany, a successful freelancer can easily pay €800 to €1,000+ per month just for public health insurance and pension.
In Greece, a newly registered freelancer pays approximately €150 to €180 per month for full public healthcare and pension coverage. Here is how the system works.
How EFKA Works for Freelancers
EFKA (ΕΦΚΑ) is the unified social security fund in Greece. If you set up a Sole Proprietorship (ατομική επιχείρηση) to work as a freelancer or contractor, you are legally required to register with EFKA and pay monthly contributions.
Unlike in many other European countries, your EFKA contributions in Greece are not a percentage of your income. Instead, Greece uses a tiered category system. You get to choose which category you want to belong to.
The Standard Categories
Every year, you select an insurance category. The lowest standard category costs roughly €240 to €250 per month, while the highest category costs over €600 per month (higher categories result in a higher state pension upon retirement). Regardless of whether you earn €20,000 or €200,000 a year, your social security cost is fixed based on the category you chose.
The “Starter Rate” for New Freelancers
Here is where the massive benefit comes in for expats moving to Greece: The Special Category for New Professionals.
To encourage entrepreneurship, the Greek government offers a heavily discounted EFKA rate for new businesses. For the first 5 years after registering your Sole Proprietorship, you are eligible for the “Starter Category” (Ειδική Κατηγορία).
As of recent rates, this category costs approximately €150 to €180 per month (rates adjust slightly each year for inflation, typically around +6%).
This single, low monthly payment covers:
- Public Healthcare coverage (access to state hospitals and subsidized medications).
- Pension contributions.
- Unemployment fund contributions.
For five years, no matter how much your business grows, your social security costs remain capped at this incredibly low flat rate.
Remote Employees vs. Freelancers
It is important to note that this applies to freelancers (Sole Proprietors). What if you are a remote employee?
If you live in Greece but remain employed directly by your foreign employer (and you are an EU citizen), you generally do not pay EFKA contributions at all. Instead, you remain in your home country’s social security system. You simply need to obtain an AMKA (Greek Social Security Number) and an A1 Certificate from your home country to access the Greek healthcare system locally. Your foreign employer handles your home-country social security deductions as usual.
The Bottom Line
When calculating your net income in Greece, you must factor in both Income Tax and EFKA. Thanks to the 5-year starter rate, the social security burden in Greece is negligible compared to Northern Europe.
Coupled with the 50% income tax break, a freelancer earning €80,000 a year in Greece will take home significantly more net profit than they would in almost any other Western European country.
[!TIP] Navigating the EFKA registration and paying your monthly stubs on time is handled by your local accountant. Ensure you have a reliable bookkeeping partner to keep your social security active and avoid late fees.
[!NOTE] Disclaimer: This article is for informational purposes only. EFKA rates are adjusted annually by the Greek state. Please consult a qualified accountant before making financial decisions.