To work for yourself legally you need three registrations in a strict order — the tax number, social insurance and, above a turnover of €15,600, VAT as well. Without a TIC you can't register for either social insurance or VAT.
The order of registration
- TIC through the Tax For All portal, form T.D.2001. Takes 1–3 working days, free.
- Social insurance — form YKA 1-008 at the district office with your passport and TIC. The number is issued within 1–2 weeks and contributions start from the quarter of registration.
- VAT — mandatory once taxable turnover exceeds €15,600 over any 12 months. You must file within 30 days of crossing the threshold; the late penalty is €85 a month. Registration via Tax For All takes 3–4 weeks.
- Voluntary VAT registration is possible earlier — sometimes worthwhile if you have a lot of costs carrying input VAT.
What you pay
- Income tax on the general scale, with a €22,000 tax-free allowance. Sole trader profits do not qualify for the 50% relief for new residents.
- Social insurance at 16.6% and GESY at 4% — on the higher of your actual income or your category minimum.
- Provisional tax: your estimate of the current year's profit, paid in two equal instalments — 31 July and 31 December. You can revise the estimate without penalty until 31 December.
- If you declare less than 75% of your actual profit, a 10% surcharge is added to the underpayment plus interest.
Reporting and penalties
- An audit is mandatory once gross income exceeds €120,000 — the threshold was raised from €70,000.
- The TD1 return is due on 31 July of the following year. For 2025 the deadline was extended to 31 October 2026.
- Keep documents for 6 years and always issue invoices.
- Late tax payment: 5% immediately and another 5% after two months, plus 3.5% annual interest. A late return costs €100.
- Quarterly VAT returns are due by the 10th of the second month after the quarter.