Increases to taxes and contributions hurt incomes

The 2016 tax hikes and the method of calculating social security contributions according to the Katrougalos law that was introduced in the same year have changed the taxable income situation in the Greek economy, wiping out many incomes of more than 20,000 euros per year and reshaping the business map.

In just three years the number of taxpayers with incomes above that threshold fell by 93,191, as that bracket paid 332 million euros less tax than in 2015. These taxpayers – mostly freelancers, self-employed professionals, corporate shareholders, salary workers and farmers – last year declared incomes adding up to 4 billion euros less than in 2015.

Meanwhile, the number of taxpayers with incomes of up to 10,000 euros increased by 248,808 as they embarked on a handout chase. At the same time the number of private capital companies soared, as they have far lower tax obligations than freelance professionals, and declared incomes from dividends dropped by a spectacular 42.5 percent from 2015 to 2018.