For many EU citizens (or Non-EU citizens on specific business visas), transitioning to Greek tax residency involves setting up a local business entity. In Greece, the most common and straightforward route is registering as a Sole Proprietor (ατομική επιχείρηση), similar to a sole trader in the UK or an autónomo in Spain.
This guide walks you through the steps, costs, and ongoing obligations of running a freelance business in Greece.
1. The Setup Process
Setting up as a freelancer involves interacting with several government portals. While it can be done independently, hiring a local accountant is highly recommended.
The essential steps are:
- Obtain an AFM (Tax Number): This is your foundational identification number in Greece. You will also get access credentials to TAXISnet, the central tax portal.
- Business Registration (GEMI): You must register your business activity and select your primary “KAD” codes. KAD codes define exactly what services you provide (e.g., software development, consulting, marketing).
- AMKA and EFKA Registration: AMKA is your social security number. Once you have an active business, you must register with EFKA, the national social insurance fund, to pay your monthly pension and healthcare contributions.
2. Monthly Costs: EFKA Contributions
Unlike some countries where social security scales aggressively with your income, Greece offers a structured tier system for freelancers.
- EFKA Contributions: For most freelancers, the mandatory social security and health insurance contributions amount to roughly €220 per month (based on the lowest standard tier).
- New Business Discount: For the first five years of your business, you may be eligible for a reduced EFKA rate of around €130 per month.
Paying your EFKA on time is critical. Payments require a Greek IBAN and must be processed monthly.
3. Invoicing and the myDATA System
Greece has fully digitized its invoicing and tax reporting system, known as myDATA.
Every invoice you issue must be transmitted electronically to the myDATA portal in real-time. You cannot simply create a Word document and email it to a client.
- E-Invoicing Mandate: By October 2026, all e-invoicing must conform to the strict European EN16931 format.
- Timologio: The government provides a free online tool called Timologio for issuing invoices that automatically sync with myDATA. However, many freelancers prefer commercial accounting software for better usability and English interfaces.
4. Taxes: VAT and Income Tax
VAT (Value Added Tax): The standard VAT rate in Greece is 24%. If you are billing clients outside of the EU, or B2B clients within the EU (via the reverse charge mechanism), you often do not need to charge VAT. However, you must still file quarterly VAT returns declaring those zero-rated invoices.
Income Tax: Greek income tax for sole proprietors is progressive, ranging from 9% to 44%.
- 9% up to €10,000
- 22% from €10,001 to €20,000
- 28% from €20,001 to €30,000
- 36% from €30,001 to €40,000
- 44% for income above €40,000
Note: If you qualify for the Article 5C scheme, 50% of your income is entirely exempt from these tax bands.
What about an IKE (Private Company)?
Many expats read about the low 5% dividend tax and assume they should open a company (IKE) instead of a sole proprietorship. The 5% dividend tax applies only to an IKE, not to freelancers.
However, an IKE carries much higher setup, accounting, and compliance costs. Generally, local accountants advise that an IKE only makes financial sense if your annual net profit exceeds €50,000 to €60,000. Below that, a sole proprietorship combined with the 5C tax break is almost always the most efficient structure.
Summary
Setting up as a freelancer in Greece requires navigating TAXISnet, EFKA, and myDATA. While the bureaucracy can be dense, the monthly costs are predictable, and the tax incentives for foreign workers make it an incredibly attractive jurisdiction for digital nomads.
[!NOTE] Disclaimer: This article is for informational purposes only and does not constitute individual legal or tax advice. Immigration laws and tax regulations are subject to change. Please consult a qualified professional before making relocation decisions.