Five basic conditions must be met by workers with freelance contracts to avoid being taxed as self-employed professionals, but instead as employees for income earned in 2025.
Read: Tax returns: How not to lose the 4% deduction – Key points to watch
Tax returns: Which conditions allow freelancers to be taxed as employees
As time is running out for submitting this year’s tax returns, with the electronic portal opening on March 16 by the Independent Authority for Public Revenue, self-employed professionals who want to avoid the “vice” of the presumptive income system by selecting the relevant code on form E1, must meet the following criteria:
- They must have written service or project contracts with individuals, legal entities or organizations that do not exceed three in number.
- If employers are more than three, at least 75% of gross income from business activity must come from one of them.
- They must have declared their residence as their professional headquarters.
- They must not receive salary from other dependent employment.
- They must provide advisory, scientific, artistic or intellectual services, meaning they practice an activity characterized as a “liberal profession.” These activities include, among others, professions such as doctors, dentists, lawyers, engineers, accountants, tax advisors, journalists, translators, teachers, artists, programmers, researchers, business consultants, etc.
Attention: if a freelance contractor fails to meet even one of the above conditions, they are taxed as a self-employed professional. Their income is calculated based on the presumptive system, with a rate of 9% for the first €10,000 and 22% to 44% for the excess amount.
Who qualifies for presumptive income reductions
However, regulations are provided that reduce the tax burden, but only for specific categories of professionals.
Specifically:
- For those residing and operating in settlements of up to 1,500 inhabitants (excluding Attica), the minimum presumptive income is reduced by 50%. For Western Macedonia, the Regional Unit of Evros and specific areas of Central Macedonia, Eastern Macedonia and Thrace, and Epirus, the measure applies to settlements of up to 1,700 inhabitants.
- A 50% deduction on presumptive income will apply to professionals with disability rates of 67%-79%, those living on islands with populations below 3,100 inhabitants, single-parent families with minor children (provided exclusive custody is proven), parents of dependent children with disabilities of at least 67%, large families, taxi operators with vehicle ownership up to 25%, and school canteen operators.
- Female professionals who had a child in 2025 are completely exempt from presumptive income and tax calculation will be based on the income they declare.
Conversely, those who meet all five conditions are exempt from presumptive income and are taxed as employees, securing tax deductions amounting to €777 for taxpayers without dependent children, €810 for taxpayers with one child, €900 for two children, €1,120 for taxpayers with three children, and €1,340 for taxpayers with four dependent children.
What changes for 2026 income
Income earned this year by workers compensated through freelance contracts will be taxed in 2027 under the new unified tax scale, which brings tax relief for those with annual incomes above €10,000. The greatest benefits arise for young people up to 30 years old and taxpayers with dependent children.
