By Vangelis Dourakis

Attention to details should be shown by thousands of individual businesses that essentially provide hired services, so-called “blocks”in order to avoid being taxed as self-employed.

To qualify for the tax-free limit applicable to employees, pensioners need to meet certain conditions, otherwise they will be taxed at 9% from the first euro.

However, if workers with a “block” meet the required conditions, then they have an informal tax-free income limit ranging from 8,636 to 12,000 euros, depending on their family situation.

What is the difference in taxation?

In this way, they ensure a tax deduction of 777 euros for the taxpayer without dependent children, 810 euros for the taxpayer with one child, 900 euros with two children, 1,120 euros for taxpayers with three children and 1,340 euros for taxpayers with four dependents children.

Otherwise, they are taxed as self-employed at 9% from the first €10,000 up to €10,000, at 22% for the portion of income from €10,000 up to €20,000 and at 28%-44% for the portion of annual fees over the level of 20,000 euros.

In this case, of course, they have the possibility to determine their taxable income by deducting business expenses from their total income.

The remaining amount will be taxed according to the scale, but without the employees’ tax-free allowance. But this requires bookkeeping.

What are the conditions for taxation as an employee?

Therefore, to avoid taxation as a self-employed person, for the 2024 incomes that will be taxed in 2025, an employee with a “block” should cumulatively meet the following conditions:

– He must have submitted a declaration of commencement of business activity to the competent D.O.Y.

– To provide his services to up to three employers or to more than three, as long as in this case he receives at least 75% of his annual fees from only one.

– To declare his residence as the headquarters for the exercise of his activity.

– Not to receive a salary from another job.

– The income from occasional employment should not exceed 6,000 euros per year, as long as the proof of living specifies a presumptive income of up to 9,500 euros and as long as no income from agricultural activity, real estate or interest on deposits. In this case, the actual income as well as the additional difference in income that may arise due to the application of the presumptions, are taxed at the wage scale.

– To provide services in which the element of advice or scientific, artistic and intellectual creation takes precedence, i.e. to carry out an activity which – according to the repealed provisions of the old Income Tax Code (law 2238/1994) – does not include the concept of of a commercial nature but is characterized as a liberal profession. These activities are that of a doctor, dentist, veterinarian, physiotherapist, biologist, psychologist, midwife, lawyer, notary public, bailiff, bailiff, architect, engineer, surveyor, chemist, agronomist, geologist, forester, environmentalist, oceanographer, designer, journalist , interpreter, tour guide, translator, teacher or teacher, sculptor or painter or cartoonist or engraver, actor, music composer, performer of musical works or musician, singer-artist of entertainment centers, dancer, choreographer, director, stage designer, costume designer, decorator, economist, analyst, programmer, researcher or consultant business, accountant or tax professional, actuary, sociologist, social worker, expert, alternative medicine homeopath, psychotherapist, speech therapist, speech and language pathologist, expert, arbitrator, liquidator in general, SA auditor, executor of wills, liquidator of inheritances and guardian of educational inheritance, archaeologist, coach, occupational physiologist, occupational therapist, graphic designer, dietitian, nutritionist, antiquities conservator, editor, proofreader, nurse or dedicated nurse.