Despite Evasion, Greece Sees Another Record Tax Bonanza Coming
Even relentless tax cheating and the wealthy hiding their money in secret foreign bank accounts hasn’t kept Greece from raking in big tax revenues in 2024 and expecting to surpass that in 2025.
For 2024 the Ministry of Finance expects as much as 66 billion euros ($72.1 billion,) based on tax returns, most of that coming from wage earners who have deductions from checks and businesses paying half as much as those making 40,000 euros ($43,766) annually.
The inequities – there are even differing rates for those in the same bracket based on incentive programs – has driven many to try to avoid or evade paying, especially professionals like doctors and lawyers who often demand cash.’
The draft 2025 budget expects an increase of 2 billion euros ($2.19 billion,) and record tourism likely bringing than 20 billion euros ($21.88 billion) – but the government saying it’s not enough to lower a 24 percent Value Added Tax on food.
The 2025 gains will come mostly from income taxes and not VAT or special consumption taxes although only a minority of Greeks pay taxes as most find ways to hide their income.
Tax revenues have been rising since 2021, beginning even during the COVID-19 pandemic that began to ease with health restrictions gradually eased and international air traffic picking up again.
That was attributed to inflation, price gouging, digitizing tax payments and measures to reduce evasion although professionals have continued to get around it by not using supposedly required Point-of-Service (POS) machines to take cards.
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