Freelancer vs Company Greece 2025 | Taliro.gr

Updated: August 30, 2025

Introduction

The most frequent question we receive is “from what amount and above does it benefit me to open a company?”. The correct answer is not a single number for everyone. It depends on turnover and expense levels, social security status, whether there are profit distributions, whether you receive a salary as manager, as well as special regulations such as the deemed taxation of sole proprietorships.

In this guide, you will see the thinking framework and practical steps to decide when and how it’s worth transitioning from freelancing (“blockaki”) to corporate form.

For personalized comparison with real 2025 rates, use our interactive calculators.

Main Decision Criteria

1. Turnover Level and Profitability

Critical Thresholds (2025):

• €30,000+ annual turnover: Deemed income starts applying to sole proprietorships
• €50,000+ annual turnover: Significant tax benefits typically appear
• €80,000+ annual turnover: Corporate form becomes clearly advantageous

Tax Difference:

• Sole Proprietorship: Progressive brackets 9%-44% + self-employed social security
• LLC: 22% corporate tax + 5% dividend tax = 25.9% total
• Partnership: 22% corporate tax (no dividend tax with single-entry books)

2. Deductible Expenses

Sole Proprietorship:

• Limited deductible expenses (10-30% of turnover)
• Cannot “charge” personal expenses

Company:

• Broader ability to deduct business expenses
• Can have salary as manager (deductible cost)
• Better tax treatment of business expenses

3. Social Security Status (EFKA)

Comparison Table 2025:

Category	Sole Proprietorship	Company (Manager)
Cat. 1	€244.65/month	€244.65/month
Cat. 2	€293.59/month	€293.59/month
Cat. 3	€351.84/month	€351.84/month
Cat. 4	€422.90/month	€422.90/month
Cat. 5	€506.78/month	€506.78/month
Cat. 6	€659.39/month	€659.39/month

Important: As company manager, you continue paying self-employed social security in the same category.

Detailed Comparison of Corporate Forms

LLC (Private Limited Company)

Advantages:

• 22% corporate tax (fixed)
• 5% dividend tax (low)
• Limited liability
• Easy transfer of shares

Disadvantages:

• Higher accounting costs (€250+/month)
• Double-entry books (mandatory)
• More obligations (annual reports, registry filings, etc.)

Total Taxation:

General/Limited Partnership

Major Advantage: Single-entry books below certain turnover threshold:

• No dividend tax: Profits distributed without additional taxation
• Total taxation: Only 22% corporate tax

Comparative Example:

Sole Proprietorship with Deemed Income

New Rules 2024+:

• Base: Minimum wage × 14 × years coefficient
• Years 1-5: 50%, 60%, 70%, 80%, 90% of base amount
• Additional increase for turnover > €30,000

Calculation Example:

Practical Comparison Examples

Example 1: IT Freelancer with €60,000 Annual Turnover

Scenario: 3rd year of activity, 20% deductible expenses, EFKA Category 3

🏪 As Sole Proprietorship

🏢 As LLC (Private Limited Company)

Example 2: Consultant with €35,000 Annual Turnover

Scenario: 2nd year of activity, 15% deductible expenses, EFKA Category 1

As Sole Proprietorship:

As Partnership (single-entry):

Result: Small difference - sole proprietorship wins by €2,124.

Additional Decision Factors

Accounting and Administrative Costs

Annual Company Costs:

• Accounting firm: €3,000-€4,500
• Business license fee: €1,000-€2,500 (depending on activity)
• Various fees (registry, reports, etc.): €300-€600
• Total additional cost: €4,300-€7,600

Asset Protection and Liability

Sole Proprietorship:

• Unlimited personal liability
• Personal assets are exposed

Company:

• Limited liability (LLC) or differentiated (partnerships)
• Better protection of personal assets

Inheritance Planning and Transfer

Company:

• Easier transfer to heirs
• Business continuity after death
• Possibility of introducing new partners

Tax Planning

Corporate Capabilities:

• Controlled profit distribution
• Better timing of tax burden distribution
• More expense deduction possibilities

Conclusions and Guidelines

When Corporate Form Benefits

Clearly Benefits:

• Annual turnover €60,000+
• High profits (>70% of turnover)
• Need for asset protection
• Expansion or partnership plans

Probably Benefits:

• Annual turnover €40,000-€60,000
• Moderate profits (50-70% of turnover)
• Stable and growing activity

Probably Does NOT Benefit:

• Annual turnover under €30,000
• Low profits (under 50% of turnover)
• Unstable activity
• First years of operation

Choice of Corporate Form

Partnership with single-entry books:

• Lower total taxation (22%)
• Fewer administrative burdens
• Better choice for small-medium turnovers

LLC:

• More management flexibility
• Better corporate image
• Better for larger businesses

Steps for Transition

1. Calculate the difference with the calculators below
2. Consult an accountant for your activity’s specifics
3. Plan the transition (year-end, client transfer, etc.)
4. Estimate operational costs (accounting, administrative)
5. Choose the appropriate corporate form

---

The information in this article is based on Greek tax legislation for 2025. For accurate calculations and personalized advice, we recommend consulting a tax professional. Calculations are indicative and may differ depending on each professional’s specific situation.