The Greek state still takes way 50% profits from freelance professionals, despite cuts in contributions

The state is effectively hampering growth in the free market by its policies

The cuts in contributions to the state for self-employed citizens and freelance professionals in the private sector might have provided some relief from the excessive economic burdens they faced over the past 2 years, but the reality is their disposable income is still greatly affected.

The state continues to effectively act as a partner imposed on sole propriety businesses and freelance professionals as it is entitled over 50% of the profits. As financial experts estimate, the aggregate tax burden after the imposition of taxes and other contributions (income tax, solidarity levy, fee) is as follows:

– For an income of 8,000 euros, the total deduction is reduced from 70% to 64.70%

– For an income of 10,000 euros, the total deduction decreases from 67% to 55.04%

– For an income 20,000 euros, the total deduction is reduced from 63.49% to 51.31%

– For an income of 30,000 euros, the total deduction is reduced from 63.71% to 52.37%

Meanwhile, the new reduced contributions of 64.5 euros for lump-sums and ancillary pensions will take effect retroactively from January 2017 for 200,000 scientists and freelancers.