Professionals: What changes in taxation from 2025 for single and self-employed people
The economic policy of 2025, as announced by Prime Minister Kyriakos Mitsotakis in the context of TEF includes, among other things, tax reductions for freelancers and self-employed.
In a press conference that took place at the Ministry of National Economy and Finance on Monday, September 9, the specification of the measures announced by the Prime Minister to TIF, for salary increases and tax reductions, was carried out by the Minister of National Economy and Finance Kostis Hatzidakis and Deputy Ministers Christos Dimas and Thanos Petralia.
Support measures for freelancers
1% reduction in insurance contributions from 1/1/2025, of which 0.5% from employee contributions and 0.5% from employer health sector contributions, with a net cost of 440 million euros.
Abolition of the self-employment fee. The application fee was reduced last year by 50%, from 650 to 325 euros and will be abolished in 2025. The cost is estimated at 120 million euros (note that the filing fee remains for legal entities and for branches).
The reduction by 50% of the minimum amount of net income that currently applies to settlements with up to 500 inhabitants (it currently occupies 11.4% of the population), will also apply to settlements belonging to municipal communities with a population of up to 1500 inhabitants. Thus the reduction will occupy 18% of the population.
The criterion of the maximum salary of an employee as a basis of comparison is moved to the end, as a field of comparison after the calculation of the other criteria (today, in addition to the maximum salary of an employee, turnover and a percentage of the salary cost are added.
The average turnover of the KAD is adjusted upwards (and thus the amount imposed on the turnover is reduced), based on the income of the tax year 2023.
Tax exemption for voluntary business benefits in favor of new parents. Not subject to income tax of natural persons, voluntary financial benefits of the employer which areprovided to a new parent for a period of up to twelve months from the birth of a child, up to the amount of 5,000 euros per year, increased by an additional 5,000 for each dependent child. A necessary condition is that there is no reduction in the wages of the new parent during the months he received the benefit as well as for the immediately preceding and following six months, in relation to the wages of the last month before the benefit.
Reduction of stamp duties on a range of transactions. The relevant bill has been submitted to Parliament. The main transactions in which the fee is abolished concern interests on business loans and credits, insurance transactions, utility loans, formation and capital increase of non-profit legal entities, various licenses to exercise a profession or start an activity.