Feeling overwhelmed by complex tax codes and the ever-watchful eye of the state? If you’re considering Greece as your next entrepreneurial base in 2025, understanding the ins and outs of the sole proprietorship—Ατομική Επιχείρηση (Atomiki Epicheirisi)—could be your ticket to greater autonomy and smarter tax optimization. Let’s break down exactly how this business status works, who can use it, and how you can leverage it to minimize your fiscal footprint.
What Is a Sole Proprietorship in Greece?
Greece offers a straightforward path for individuals to operate as sole proprietors, known locally as Ατομική Επιχείρηση (Atomiki Epicheirisi). This status allows you to invoice clients and run your business without forming a separate legal entity. It’s a popular choice among freelancers, consultants, and digital nomads seeking flexibility and minimal bureaucracy.
Key Features at a Glance
| Feature | Details (2025) |
|---|---|
| Eligibility | Greek citizens and residents |
| Legal Entity | No separate legal entity required |
| Taxation | Progressive income tax as a natural person |
| VAT Registration | Mandatory if turnover exceeds €10,000 ($10,900) per year |
| Social Security | EFKA contributions required |
| Registration | AADE & local Chamber of Commerce |
How Are Sole Proprietors Taxed in Greece?
As of 2025, sole proprietors in Greece are taxed on their business income as individuals, not as corporations. The tax rates are progressive, meaning the more you earn, the higher your marginal tax rate. Here’s how the brackets break down:
| Income Bracket (€) | Income Bracket ($) | Tax Rate |
|---|---|---|
| Up to 10,000 | Up to 10,900 | 9% |
| 10,001–20,000 | 10,901–21,800 | 22% |
| 20,001–30,000 | 21,801–32,700 | 28% |
| 30,001–40,000 | 32,701–43,600 | 36% |
| Above 40,000 | Above 43,600 | 44% |
Pro Tip #1: If you’re just starting out or expect modest earnings, the 9% rate on the first €10,000 ($10,900) can be a significant advantage compared to higher corporate or employment taxes elsewhere in Europe.
Mini Case Study: Freelancer in Athens
Imagine a digital consultant earning €18,000 ($19,600) in 2025. The first €10,000 ($10,900) is taxed at 9%, and the next €8,000 ($8,700) at 22%. This progressive structure can be optimized by careful income planning and expense tracking.
Registration and Compliance: What You Need to Know
Setting up as a sole proprietor in Greece is relatively streamlined:
- Register with the Independent Authority for Public Revenue (AADE) (official guide).
- Register with your local Chamber of Commerce.
- Open a business bank account (recommended for transparency).
- Track your income and expenses meticulously for tax reporting.
Pro Tip #2: If your annual turnover stays below €10,000 ($10,900), you may avoid mandatory VAT registration—simplifying your paperwork and reducing compliance costs.
Social Security and Other Obligations
All sole proprietors must contribute to the Greek social security system (EFKA). Rates and minimum contributions can change, so always check the latest requirements before registering.
Pro Tip #3: Social security contributions are deductible from your taxable income, so keep detailed records to maximize your deductions and minimize your net tax burden.
Summary: Is Greek Sole Proprietorship Right for You in 2025?
For international entrepreneurs and digital nomads, Greece’s sole proprietorship status offers a blend of flexibility, moderate entry barriers, and the potential for tax optimization—especially at lower income levels. While progressive tax rates and social security contributions are unavoidable, strategic planning can help you keep more of what you earn and maintain your independence.
For further details, consult these official resources: