2026 will be a difficult year for approximately 700,000 freelancers and self-employed individuals, as the increase in the private sector minimum wage from €830 to €880, implemented from April 1st, “inflates” imputed income levels and significantly increases income tax. The minimum wage is used as the basis for calculating minimum imputed taxable income amounts declared to the Tax Authority, resulting in professionals being taxed on higher amounts, even if their actual income remains stable.
Major relief comes in 2027, when the new tax scale will be implemented, reducing tax rates and bringing relief to professionals with profits above €10,000. Those with children will benefit most, as will those declaring medium or higher incomes, while the tax burden will also be lighter for young professionals. The settlement of 2027 tax returns will show the extent to which these changes can provide relief to the vast majority of self-employed individuals.
What applies to freelancer taxation in 2026
For 2025 income that will be taxed in 2026, the following applies:
1. New increased minimum imputed income for approximately 400,000 professionals. The adjustment from April 1st, 2025 of the private sector minimum wage from €830 to €880 automatically leads to an increase in minimum imputed income and the tax that professionals will pay. The imputed income increases from €11,620 in 2024 to €12,320 in 2025, affecting approximately 400,000 professionals caught in the imputed income trap.
2. The 50% discount on imputed income is expanded to include freelancers based in settlements outside Attica with populations up to 1,500 inhabitants.
3. New mothers practicing freelance professions are exempted from imputed income calculations during their child’s birth year and the following two years.
Changes in freelancer taxation for 2027
2027 will be a pivotal year for freelancers and self-employed individuals with net profits above €10,000, as they will pay lower taxes on their income. The tax scale changes radically, with a 2 percentage point reduction in all rates except the introductory 9%, while a 39% rate is established instead of 44% for those with incomes up to €60,000.
Young freelancers receive special treatment:
– Those up to 25 years old will have zero taxation for income up to €20,000
– Those aged 26-30 will be taxed on income from €10,001 to €20,000 at a 9% rate instead of 22%. Other rates applied above the €20,000 annual income level will be reduced case by case, exactly as for taxpayers over 30.
Tax will also be zero for large-family freelancers with incomes up to €20,000.
For example:
– Tax reduction for professionals with one child ranges from €200 for €15,000 income and reaches €2,000 for those declaring €60,000 and above.
– Tax reduction for professionals with 3 children starts from €650 for €15,000 income and can reach €3,300 for €60,000 income and above.
