According to the new regulations, the minimum presumptive income of self-employed professionals, (applies to incomes of 2023) is presumptively up to €50,000, resulting from the sum of the following:
Amount up to €30,000 that corresponds to the largest of
- The current minimum wage increased by 10% for every 3 years of professional activity after the first six years from the beginning of the professional activity, with a final increase of 10% after the third three-year period (12 years from the start of the profession)
- The highest annual salary that the taxpayer pays to an employee of up to €15,000, which is equal to 10% of payroll cost plus 5% of the amount by which the taxpayer's turnover exceeds the average annual turnover of the entity with the respective activity code number.
The last overcharge will not be applied when,
- the average annual turnover of the corresponding activity code number does not exceed 10,000 euros or
- the number of claims that fall under the specific activity code number does not exceed 30
- businesses with zero turnover are not taken into account for the calculation of average turnover
This minimum income can be contested by taxpayers in the cases of being on military service, imprisonment, hospitalization in a hospital or clinic, inability to exercise activity due to pregnancy or during the 12 months after birth or adoption or fostering of a child, extensive natural disasters that made it impossible, in whole or in part, to exercise their professional or business activity, revocation of the license to operate their individual business or their license to practice their profession, prohibition of the operation of the store or other place of exercising their professional or business activity in application of a decision of a public authority, for reasons of protection of public health or another reason dictated by the public interest, other reasons of force majeure that prevent the exercise of business activity for a certain period of time.
For the application of the above, the taxpayer submits to the tax administration the necessary supporting documents to prove their claims.
Cases that the reduced presumption is not applicable
The following cases are exempted for the above:
Profits from agricultural business activity and activities that are limited in time by regulations (in this case, the presumption is limited to the period of time that the activities are allowed)
persons with a disability equal to or greater than 80%
those who are paid through notes for services rendered, as long as they have contracts with up to three persons
the activities that are limited in time by regulations (in this case the presumption is limited to the period of time that the activities are allowed)
Any income from wages, pensions or from agricultural business activity is included, to meet the presumption.
The presumption is being reduced by 50% for professionals:
- having a disability of 67% to 79%,
- who carry out an activity and have their main residence in settlements with a population of up to 500 inhabitants and on islands with a population of less than 3,100 inhabitants,
- to parents of a single-parent family with minor children,
- to parents with dependent children with a mental or physical disability rate of at least 67%,
- to parents with more than three children
Freelancers who will be taxed on this year's (2023) presumptive income, will pay a 50% reduced advance tax in 2024, calculated on the difference between presumptive and declared profit.
In addition, freelancers with a newly established business activity will have the following reductions in the minimum wage: 100% for the first three years, 67% for the 4th year and 33% for the 5th year.
