What benefits do freelancers “lose”?

The ‘brakes’ have been put on the social benefits that many self-employed professionals collect with the new tax system that will be implemented from 2024 and will apply to income earned this year.

According to estimates by the Ministry of National Economy and Finance, with the implementation of the new tax system, allowances for self-employed workers are expected to be reduced by 100 million euros.

What are freelancers missing?

According to recent data provided by financial officers, 7 out of 10 declare their income to be less than €10,000. The decline in declared income led to the granting of benefits to about 70% of professionals.

So it appears that self-employed people lose out on the reduced 50% ENFIA plus housing and child benefits.

A reduction of 100 million euros is expected

This will happen because the minimum assumed income set by the new law amounts to 10,920 euros, an amount that increases depending on the three years, whether they employ workers and their turnover.

In practice, this means that many current beneficiaries will either receive a share or the benefit amount they will receive will be less.

especially:

– Camp: Today the ENFIA is halved if the total taxable household income in the last tax year does not exceed €9,000, with an increase of €1,000 for the spouse and each dependent. The total area of ​​the premises in which the person obliged to file an income tax return, his wife or common-law partner and dependent children of his family have rights, taking into account the proportion of joint ownership and the type of ownership is correct, does not exceed 150 square meters. The total value of immovable property does not exceed €85,000 for a single person, €150,000 for a married person and their spouse or partner or a single-parent family with a dependent child and €200,000 for a married person or their spouse or common-law partner and their dependent children or a single-parent family with two dependent children.

This means that most professionals who were enjoying this discount will lose it. For example, today a professional with six years of work, declares 5,000 euros, and the ENFIA has been reduced by 50%. With the new system, the declared income will be at least €10,920 (assumed). Because of the increased income, he will lose the deduction.

– Housing allowance: Total income cannot exceed €7,000 for a one-person household, with an increase of €3,500 for each additional household member. In a single-parent family, an additional fee of 7,000 euros is set for the first minor member of the family. In families with unprotected children, an additional amount of €7,000 is allocated for each unprotected child. Total income cannot exceed €21,000 per year, regardless of family composition. The amount of the housing allowance for the beneficiary is set at 70 euros per month and for each additional family member an additional 35 euros per month.

– Child benefit: Child benefit is paid based on the number of dependent children, equivalent family income, and equivalent family income category. The law provides for three categories of family income, specifically a) the first category: up to €6,000, b) the second: from €6,001 to €10,000 and c) the third: from €10,001 to €15,000. To determine the family income category, the income shown in the statement for the current fiscal year is taken into account. The amount of the child allowance is monthly amounts: a) for the first category of family income up to 70 euros for the first dependent child, 70 euros for the second and 140 euros for the third and every child after the third, b) for the second category 42 euros for the first dependent child, 42 euros for the second child and 84 euros For the third child and every child after the third and c) for the third category at a price of 28 euros for the first dependent child, 28 euros for the second child and 56 euros for the third and every child after the third.

source: ot.gr