There is no universal turnover at which every freelancer in Greece should create a company. The decision depends on profit, how much cash the owner needs to withdraw, EFKA status, accounting and payroll costs, commercial risk, co-owners and whether profits will remain in the business.
Use the employee versus B2B calculator to compare numerical scenarios, then take the complete assumptions to an accountant. A headline comparison of personal and corporate tax rates is not enough to choose a legal form.
The structures being compared
Sole proprietorship
The individual and the business are not separate legal persons. Taxable business profit generally follows the individual business-income scale, subject to the current minimum-net-income rules and available exceptions or reductions. The owner also has personal accounting, VAT and EFKA obligations.
IKE or another company
A legal entity calculates its own taxable profit. The standard corporate income-tax rate is 22% for ordinary legal persons, while dividends distributed to an individual are generally subject to 5% withholding. Those percentages do not create a universal 25.9% effective rate: manager remuneration, EFKA, deductible costs, retained profits and timing can change the result.
Partnership
An OE or EE can have different liability and accounting consequences from an IKE. A lower setup burden is not automatically a lower total risk, particularly when partners may be personally liable.
Compare annual profit, not turnover
Turnover is revenue before expenses. Tax comparisons should start with a reconciled profit estimate:
revenue
− deductible operating expenses
− accounting, payroll and compliance costs
= profit before owner extraction and taxA consultant billing €70,000 with €10,000 of real business costs is not comparable with a reseller billing the same amount with €45,000 of stock and fulfilment costs.
The seven questions that usually decide the answer
1. How much cash must the owner withdraw?
A company can be more attractive when profits are retained for hiring or investment. If nearly all cash must be extracted personally each year, compare the full route from company profit to salary, fees or dividends.
2. What is the sole proprietor’s minimum taxable income?
Greek rules can establish a rebuttable minimum net income for an individual business. The calculation and its reductions depend on facts such as years of activity, other salary income, disability, parenthood and location. Do not replace that calculation with a made-up turnover threshold.
3. Which expenses are genuinely deductible?
AADE requires an expense to serve the business, correspond to a real transaction, be recorded in the books and be supported by suitable documents. A company does not turn personal consumption into a deductible business cost.
4. What EFKA obligations apply?
Compare the owner’s exact insurance position in each scenario. A manager, partner or owner can have obligations that a simple corporate-tax calculation omits.
5. What are the recurring compliance costs?
Include accounting, payroll, General Commercial Registry obligations, banking, invoicing software, legal support and the time needed for corporate decisions and filings.
6. Does limited liability have real value?
Contracts, employees, leases, debt and regulated work may make risk separation more important than a small projected tax difference. Personal guarantees can reduce that protection.
7. Will ownership change?
A company may be more practical when adding partners, allocating shares, raising capital or planning succession. A solo service business with little commercial risk may value simplicity more.
A comparison worksheet
Ask your accountant to model at least these columns for the same business year:
| Input or result | Sole proprietor | Company |
|---|---|---|
| Revenue | ||
| Deductible operating expenses | ||
| Extra accounting and compliance cost | ||
| EFKA paid by owner or business | ||
| Owner salary or management fee | ||
| Profit retained in business | ||
| Corporate or individual income tax | ||
| Dividend withholding | n/a | |
| Cash available personally |
Run a conservative and an optimistic profit case. If one structure wins only under the optimistic assumptions, the decision is not robust.
New-business reliefs
AADE lists reliefs for eligible new sole proprietors, including a reduced first-bracket rate during the first three years when the gross-income condition is met, a reduced first advance-payment assessment, and other time-limited provisions. Check eligibility and current dates rather than assuming every new activity qualifies.
Warning signs in online comparisons
- They use turnover as though it were profit.
- They compare 44% personal tax with 22% corporate tax on the entire amount.
- They omit dividend tax, EFKA or company accounting cost.
- They claim an IKE is always beneficial above one revenue threshold.
- They treat personal expenses as company deductions.
- They ignore retained earnings and liability—the two strongest non-tax reasons to incorporate.
Next step
Build two or three scenarios in the Taliro employee versus B2B calculator. Also review the enacted 2026 personal income-tax brackets. Before changing legal form, obtain a written comparison that states every assumption and includes closure or transition costs.
Official sources
- Ministry of National Economy and Finance — Income Taxation
- AADE — Commencement of business activity
- AADE — Tax reliefs and benefits for a new business activity
- AADE — Submission of business income-tax returns
Reviewed on 3 September 2026. Legal-form decisions require personalised tax and legal advice.