Self-Employed Taxes in Greece (2026): EFKA Insurance Classes, Income Tax on Net Profit and Filing
Self-employed and freelance workers in Greece pay EFKA social contributions as a fixed monthly amount based on which of six insurance classes they select each year -- not as a percentage of profit. Income tax uses the same 9% to 44% progressive brackets as for employees, applied to annual net profit after deductible business expenses. Both obligations are declared and paid through AADE, the Greek Independent Authority for Public Revenue; confirm current EFKA class amounts with e-EFKA.
EFKA for the self-employed: fixed insurance classes, not a percentage of profit
Unlike employed workers who pay EFKA as 13.37% of gross salary, self-employed and freelance workers in Greece pay EFKA contributions as a fixed monthly amount determined by their chosen insurance class. There are six insurance classes, each carrying a different fixed monthly contribution amount. The key features of the class system are: - A taxpayer selects one of the six classes at the start of each year. The minimum class is the default if no selection is made. - The fixed monthly amount for each class is set by regulation and updated periodically. Because we cannot verify the exact 2026 euro amounts for all six classes at the time of writing, we do not state them here. Check current class amounts directly with e-EFKA before the annual selection deadline. - The choice of class affects both the monthly contribution cost and the level of pension and other social security benefits that accrue -- higher classes build entitlements faster but cost more each month. - The fixed class contribution is not linked to actual income or profitability. A self-employed worker in a loss-making year still owes the full monthly class contribution for their selected class. A qualified accountant or EFKA adviser can help you evaluate which class suits your expected income and long-term pension goals.
Choosing your insurance class: practical considerations
The annual class selection for self-employed EFKA contributions is a genuine financial decision with both short-term (cash flow) and long-term (pension entitlement) consequences. Points to consider when choosing a class: - Cost: the fixed monthly contribution differs between classes. Higher classes cost more each month regardless of business profitability. - Pension credit: contributions at higher classes accumulate pension credit at a higher rate, affecting the eventual statutory pension amount. - Health cover: EFKA health entitlements generally require a minimum number of contribution days per year; confirm current requirements with e-EFKA. - Cash-flow risk: because the contribution is fixed and not profit-linked, a self-employed worker with volatile income may face pressure in low-income months if they have selected a high class. - Deadline: the deadline for making or changing the annual class selection is set each year by e-EFKA. Missing the deadline typically results in defaulting to the minimum class. Confirm the deadline on the e-EFKA portal at the start of each year. Always verify your class options, current amounts and deadlines with e-EFKA or a qualified accountant, as class amounts and rules can change between years.
Income tax on self-employment net profit: the 9%-44% scale
Self-employed and freelance workers in Greece pay income tax on their annual net profit using the same six-bracket progressive scale as employees -- 9% on the first 10,000 EUR of net profit, rising to 44% above 60,000 EUR. The taxable base for self-employment income tax is net profit: total business receipts minus allowable deductible business expenses. Common deductible expenses include professional fees, equipment depreciation, rent for business premises, business travel, professional subscriptions, and other costs directly related to the business activity. All expenses must be supported by valid tax documents (apostoli -- Greek-compliant tax receipts or invoices). An important difference from employment: for self-employment income the meiosi forou tax reduction generally does not apply in the same way as it does for employees, or is limited. The precise treatment depends on the specific income category and professional status. Do not assume the full employee meiosi forou applies to self-employment income -- confirm your eligibility with AADE or a qualified accountant before filing. Self-employed EFKA contributions are typically deductible from gross business income before income tax is calculated. Confirm the deductibility rules for your specific situation with AADE or an accountant.
Filing and paying: AADE, the E1 return and EFKA monthly payments
Self-employed and freelance workers declare annual income and pay income tax through AADE via the E1 income tax return, which covers total income from all sources including business income. Typical timeline: - Income from the prior year is declared on the E1 return filed in the following year; the deadline is typically in late June or July. AADE sets and may extend the deadline -- confirm on the AADE website each year. - A prepayment of estimated income tax for the current year (prokatavoli forou -- advance tax) is often due alongside the annual return. Self-employed workers typically pay a percentage of prior-year tax as an advance against the current year's liability. - EFKA contributions for self-employed workers are paid on a monthly basis directly to e-EFKA throughout the year, separate from the AADE return. Payment: income tax due under the annual return may be paid in a lump sum or in instalments depending on the amount and AADE rules in force at the time. Late payment attracts interest and surcharges. Record-keeping: self-employed workers must maintain accounting records and issue compliant invoices or receipts for all professional income. The level of record-keeping required depends on business size and activity type. A qualified Greek accountant (logistis) can advise on the appropriate obligations for your specific activity.
FAQ
Do self-employed workers in Greece pay EFKA as a percentage of their profits?
No. Self-employed workers in Greece pay EFKA contributions as a fixed monthly amount based on the insurance class they select each year, not as a percentage of profit. There are six classes, each with a different fixed monthly contribution. The minimum class applies by default if no selection is made. The fixed amount is owed regardless of whether the business is profitable in that month or year. Check current class amounts and the annual selection deadline with e-EFKA before the start of each year.
How many EFKA insurance classes exist for the self-employed in Greece?
There are six EFKA insurance classes for self-employed workers. Each class corresponds to a different fixed monthly contribution amount and a different level of pension and social security entitlement. A self-employed worker selects one class at the start of each year; the minimum class is the default if no choice is made. Higher classes cost more per month but build pension entitlement faster. Confirm the exact euro amounts for each class in 2026 with e-EFKA, as they are updated by government regulation.
What expenses can I deduct from self-employment income for tax purposes in Greece?
Self-employed workers can deduct allowable business expenses from gross receipts to arrive at taxable net profit. Common deductible expenses include professional fees, equipment and depreciation, business premises rent, business travel, professional subscriptions, and other costs directly related to the business activity. All expenses must be supported by valid Greek tax documents (apostoli or compliant invoices). The specific rules on which expenses are deductible depend on the income category and professional status. Confirm the deductible expenses for your activity with AADE or a qualified accountant.
Does the meiosi forou tax reduction apply to self-employment income in Greece?
Generally not in the same way as for employees. The meiosi forou available to employed taxpayers (up to 777 EUR for single workers with no children) generally does not apply to self-employment or freelance income, or is limited depending on the income category and professional classification. Do not assume the full employee meiosi forou reduces your self-employment tax bill. Confirm your eligibility for any tax reduction with AADE or a qualified Greek accountant before filing your return.
⚠️ Informational estimate, not tax advice. Payroll software may differ in edge cases. Verify with a professional.