NI payments.

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I have a son who is married to a Greek women. He currently works in the UK, he is thinking of running a triclye-cafe obviously selling coffee. What scares the living daylights out of him is how much NI contributions (EKA etc) is he likely to pay? his turnover is only likely to be under a thousand Euros each month. Please, please don't forward links to solicitors, accountants in Greece. Have you any personal advice from your own experience. Would he need a street traders license, if so what kind of work insurance would he need to pay, and how much. I know this type of license would be issued by Athens, the question has to do with how much insurance is he likely to pay each month. Yes I know Greece is in a state of flux at the mo, and I know there are planned changes to the law.  A guy selling coffee from a byclye what type of work insurance would he need and how much aproxiamately would he need to pay every month. Please again refrain from sending links to Greek professiionals.     Many thanks. Clive.

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Stefanos-350558 1442911222

I am no specialist, but own a small business, making about Euro 1000 monthly.


Suggest  you are extra cautious !  Greece is nice to live in, but there is no certainty in anything. 


Rules change daily, so something you read  or  hear  -even officially- may change tomorrow,


especially in Social security dues.


You probably need to be on OAEE, that means monthly dues for medical insurance and pension might   be around Euro 300 per month. This is obligatory. I might add that  most small businessmen cannot afford dues that high  and owe a lot, with serious  problems.


Do not expect ever to get a pension, and if you need to visit a dentist you pay him on your own.


I  am insured since 1974, needed a pair of reading glasses, paid Euro 200 for them and only got Euro 100 after spending two days fighting red tape. I finally  received  the 100 one year later !


The problem of taxation is a different one. It is not that  tax percendage is extra high. You must  watch out  for the various obligatory dues you need to pay, even in case  you are losing money.


They are not called taxes, but  TELI.  For example, some years ago I sold my old business and was taxed  for yperaxia (overvalue) whatever that means, despite paying very high taxes for 18 years. In starting a new business, I used this capital  (already taxed)  and before even starting I had to pay 1% tax for "accumulating capital". In the first years I was losing money, which is to be expected. But I still had to pay social security, plus an annual TELI of Euro 800. This is on top of any VAT or taxation on profit.  Also  you  need  to  bear in mind  you will need the services of an accountant - of course the cost depends  on your type & size of business, but an expense of Euro 70 per month is considered low.  Another cost  you need to  calculate is  the time needed  for  you  to  wait in line  at the DOY tax offices, as  bureaucracy  is incredible.  The Greek tax authorities  consider  the average  taxpayer  a  criminal  and act  accordingly.  Newspapers might  say  Greeks do not pay all their taxes, but omit saying  that  if you own property with  a market value of  Euro 100.000,  you are expected to pay taxes as if it cost  300.000, because  property values have  fallen sharply in the last 6 years  but  tax authorities  do not acknowledge this.


It is not only a matter  of  paying, you should  expect  to wait  long  before  you get a permit  for working.  I did not try for tricycle licence, but needed a permit to build a small  buiding, and i had to wait  for one whole year, even if everything was in order. Also, Greek banks do not  give loans. None.  So if you will need even a  modest  startup  capital, you should look elsewhere.


Writing the above, I do not wish to dampen your spirits, just point out existing pitfalls. 


A  crisis  does provide  with  opportunities  and  there are businesses making money, but it is useful  to know  possible expenses in advance.  


As  we say here, it is better  to tie properly your donkey  than to have to  search  for  him ...


Good  luck,


Stefanos

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