- “Blockaki” is not a separate legal form; it is the common Greek term for a self-employed professional who invoices one or a small number of clients.
- Under specific conditions, business income may receive employee-like income tax treatment.
- Written contracts, counterparties, revenue concentration, registered premises and the activity itself are considered.
- Tax and social-security “blockaki” are different regimes.
- For tax, the test is up to 3 counterparties, or more when at least 75% of gross business revenue comes from one. The special social-security provision considers up to 2.
- Whether the arrangement is beneficial depends on the actual facts.
1. What does working with a “blockaki” mean?
“Blockaki” is an everyday term, not a distinct legal structure. The professional has registered a business activity, holds the appropriate Greek activity code (KAD), issues invoices and remains responsible for the related tax obligations.
Where the conditions of Article 12(2)(f) of Law 4172/2013 are met, income from that business activity may be treated for income-tax purposes as employment income.
2. What are the requirements?
Written contracts
Written service or project contracts must exist with the counterparties.
Number of counterparties
The numerical condition is met with up to three counterparties. With more than three, at least 75% of total gross business revenue must come from one counterparty.
| Counterparty | Revenue |
|---|---|
| Company A | €30,000 |
| Company B | €4,000 |
| Company C | €3,000 |
| Company D | €2,000 |
| Company E | €1,000 |
| Total | €40,000 |
€30,000 is 75% of €40,000, so this numerical condition is met even though there are five counterparties.
Nature of the activity
The activity must be examined under the tax rules for services without a commercial character. Economists, accountants, consultants, engineers, architects, lawyers, doctors, programmers, teachers, translators, psychologists and designers are illustrative examples. A job title alone does not determine eligibility.
Registered business premises
The business establishment must not be different from the taxpayer’s home. A home-based consultant may meet this condition; a separate professional office requires different assessment and may prevent eligibility.
Parallel employment
Employment income earned in parallel affects application of the special tax provision. Social-security treatment is a separate question.
3. Is employee-like taxation optional?
This is not a year-end choice between two calculations to select the cheaper one. The special treatment follows from whether the statutory requirements are met.
4. How is a blockaki taxed in 2026?
For a taxpayer over 30 with no dependent children, the basic 2026 individual income-tax scale is:
| Income band | Rate |
|---|---|
| Up to €10,000 | 9% |
| €10,000.01–€20,000 | 20% |
| €20,000.01–€30,000 | 26% |
| €30,000.01–€40,000 | 34% |
| €40,000.01–€60,000 | 39% |
| Above €60,000 | 44% |
From 2026, more favourable variations may apply depending on age and dependent children, so the actual calculation requires the taxpayer’s personal data. Where the special treatment applies, the relevant tax reduction under Article 16 may also apply, subject to its conditions.
5. What happens to business expenses?
In an ordinary sole proprietorship, tax-deductible business expenses reduce taxable profit under the general rules. Under Article 12(2)(f), not all professional expenses operate in the same way when calculating income treated as employment income. Paid social-security contributions are particularly important.
6. Example 1 — Professional with low expenses
Revenue €20,000, social-security contributions €3,000 and other expenses €2,000.
Special treatment
€20,000 − €3,000 = €17,000 taxable amount.
€10,000 × 9% = €900
€7,000 × 20% = €1,400
Tax before the relevant reduction: €2,300.
Ordinary business activity
€20,000 − €3,000 − €2,000 = €15,000.
€10,000 × 9% = €900
€5,000 × 20% = €1,000
Basic tax: €1,900.
Under the special treatment, the statutory tax reduction is then calculated from the taxpayer’s circumstances. Ordinary business activity may also carry advance income tax, which is a prepayment against the following tax year rather than a second permanent tax. These simplified figures are not personal tax advice.
7. Example 2 — Professional with significant expenses
Revenue is €20,000, contributions €3,000 and other business expenses €6,000. The special-treatment amount is €17,000. Under ordinary business taxation it is €20,000 − €3,000 − €6,000 = €11,000, producing basic tax of €900 + €200 = €1,100.
This shows why there is no single answer to “which is better”: substantial deductible costs can materially change the result.
8. What about minimum deemed income?
This can be a major difference from ordinary sole-proprietor taxation and must be checked against the facts reported in the return.
9. Tax and social-security “blockaki” are not the same
| Topic | Tax regime | Social-security regime |
|---|---|---|
| Main rule | Article 12(2)(f), Law 4172/2013 | Article 39(9), Law 4387/2016 |
| Counterparties | Up to 3, or more with 75% from one | Up to 2 |
| Subject | Income tax | Social-security contributions |
| Same regime? | No | No |
10. Example — Three clients
A programmer earns €15,000 from Client A, €10,000 from Client B and €5,000 from Client C: €30,000 in total. Assuming all other conditions are met, the three-counterparty tax limit is not exceeded and Article 12 may apply. For social security, three counterparties exceed the special two-counterparty limit.
11. Blockaki and parallel employment
An employee earns €18,000 per year and also invoices €8,000 to one client. Having only one client does not automatically bring the €8,000 within Article 12’s special tax treatment; parallel employment must be taken into account. Social security is assessed separately.
12. Invoice or employee?
A net salary of €1,500 cannot be compared directly with an invoice of €2,000 plus VAT. The comparison must include income tax, social-security contributions, any withholding, accounting support, operating costs, sole-proprietor obligations, employee leave and benefits, contractual terms and actual annual net income.
13. When can blockaki treatment be more favourable?
It may be particularly relevant with a small number of stable clients, relatively low real business costs, a home registered as the business address and full satisfaction of Article 12. The comparison also includes the Article 16 tax reduction, exemption from minimum deemed income and, where the separate insurance criteria are met, the special social-security treatment. It is never automatically preferable.
Blockaki vs ordinary sole proprietorship
| Topic | Special “blockaki” treatment | Ordinary sole proprietorship |
|---|---|---|
| Legal form | Sole business activity | Sole business activity |
| Tax scale | Individual scale | Business-income scale |
| Article 16 reduction | May apply | Generally does not apply |
| Business expenses | Not all operate as under ordinary activity | Deductible under the general conditions |
| Minimum deemed income | Does not apply where Article 12 is satisfied | May apply |
| Advance tax | Assessed under the special treatment | Generally applies |
| Clients | Up to 3, or 75% from one | No equivalent restriction |
| Business address | Must not differ from the home | May be separate |
| Social security | Assessed separately | Depends on insured status |
Conclusion
“Blockaki” is not a different corporate form. It is a business activity that may receive special income-tax treatment when the statutory conditions are met. Tax treatment, social-security treatment and the true nature of the working relationship must be assessed separately.
Two professionals with the same turnover can have very different results depending on clients, expenses, business address, age, family circumstances and insurance obligations. For the registration process, see Starting a Sole Proprietorship in Greece in 2026. For a broader legal-structure comparison, see Sole Proprietorship or P.C.C.?.
Frequently asked questions
What is a “blockaki”?
An everyday Greek term for a sole business activity that issues invoices. It is not a separate legal form.
How many clients can I have for employee-like tax treatment?
Up to three, provided all other conditions of Article 12(2)(f) are met.
Can I qualify with four or more clients?
Potentially, if at least 75% of total gross business revenue comes from one and all other conditions are met.
Can I have a blockaki while also being an employee?
Parallel activity is possible, but employment income affects application of the special tax provision.
Are business expenses deducted under blockaki treatment?
Not all operate as they do under ordinary business taxation. Paid social-security contributions receive particular treatment.
Does minimum deemed income apply?
Not to income within Article 12(2)(f), where the relevant requirements are met.
Are tax and social-security blockaki rules the same?
No. They arise under different laws and use different tests.
Do three clients qualify for the special e-EFKA rule?
No. The special Article 39(9) arrangement concerns up to two counterparties.
Must my business address be my home?
For this tax treatment, the business establishment must not be different from the taxpayer’s home.
Is blockaki better than ordinary sole-proprietor taxation?
It depends on revenue, expenses, clients, premises, personal tax reductions and social-security obligations.
Not sure whether you meet the requirements?
Every “blockaki” case requires individual review because tax and social-security treatment depend on the actual facts of the working relationship.
Sources and legal framework
- AADE — POL.1047/2015: application of Article 12(2)(f), Law 4172/2013
- AADE — Circular E.2027/2024: Article 28A and the Article 12(2)(f) exemption
- AADE — O.3068/2025: Law 5246/2025 and the 2026 tax scale
- AADE — Advance income tax on business activity
- e-EFKA — Circular 17/2017: Article 39(9), Law 4387/2016