Greek professionals and freelancers brace to pay up to 75% of their income in taxes and security contributions in the new year, as taxes and contributions go up as of January 1st, 2018.

The new tax calculation system and the new method of calculating security fund contributions will affect about 1,4 million professionals, freelancers, farmers and landlords. Those who declare high incomes will be obligated to pay up to 75% in taxes and security fund contributions.

For example, for certain professions an individual who earns 5.000 Euros per month, will have to pay 1.750 Euros in taxes and 2.015 Euros in security contributions, meaning that 75% of their monthly income will go to the state.

For annual incomes of 10.000-45.000 Euros, taxes and security contributions will range from 49,04% to 57,58% of the total income.

An average freelancer who earns 60,000 Euros per year will be required to pay a total of 37.200 in taxes and security contributions (62%). As the income increases, so do the taxes. For an annual income of 70.000 Euros, the state will keep a total 64,5%.

Also, salaried employees and pensioners will see their 2018 incomes shrink as the abolition of tax exemptions and the imposition of new taxes go into effect. For instance, public sector employees will lose 5-40 Euros from their monthly salaries. The same will apply to pensioners who will see their supplementary pensions slashed further.

At the same time, tax exemptions for medical expenses or private tuition will be abolished, meaning that income tax due will be higher for many households.

In addition, the equalization of the state-established objective value of real estate properties with the true market prices, will bring an increase in the single property tax (ENFIA) of up to 30% for many household owners in areas where real estate prices are low. However, property owners in “expensive” areas will see a decrease in the ENFIA tax.

Source: Philip Chrysopoulos/greece.greekreporter.com