September 28, 2022

News Cymru

Two sides to every headline

Income Tax In Greece – How Much To Greeks Really Pay? 79% on 20K

A business man in Greece was highlighting how the actual tax rate on 20,000Euros earnings will be around 79% if the new Troika measures are implemented. This is how it breaks down.

Under the latest measures there will be no tax-free limit in Greece. All Greeks will be taxed from the first Euro they earn.

Basic rate of income tax for the self-employed will be raised from 25% to 35%.

Each individual case will be slightly different but these are the basic figures which are conservative.

So, looking at a business man who earns 20,000Euros a year profit.

35% will be taken by the government for income tax leaving 13,000Euros

Social security payments, assuming the low-end will be 4,000Euros a year leaving 9,000Euro.

The new property taxes on average are around 500Euros leaving 8,500Euro

VAT (Value Reduction Tax) at 23% leaves 6545 Euros

Car tax at 400Euro a year leaves 6145Euros

Assuming 2000Euro a year in fuels cost at 70% tax/duty (1400Euro total taxes) leaves  4745Euros

Emergency business tax, the price you have to pay for having  business 500Euro a year leaves 4245 Euros

This works out at a tax rate of 79% for someone earning 20,000Euros a year.

That’s 4245Euros left to buy food, pay the bills, buy clothes, pay the rent/mortgage, god forbid that you may have children to support and this excludes and white goods you may need and any leisure time you may want to take.

Taking all that into consideration it looks almost impossible to live on earnings of 20,000Euros. No wonder the Greek government constantly complains of tax evasion while having no evidence. The only way someone can live of 20,000 euros is if they avoid some of the taxes!

And yet Greece had general election 4 months ago.

There were mass protests throughout the country last Friday but you have to ask the question, what did Greeks expect when they voted in a left leaning government?

Is democracy dead in Greece for the simple reason that so many people have their financial welfare tied to the state?

I think the answer has to be yes. Why else would the “majority” of the people vote for left leaning government when the inevitable result of this will be increased government and taxes? The only answer is that the majority of the elcetorate and in fear of losing their job if the required reforms and carried out so they vote for parties that they know will not cut government.

 

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