The results of previous tax returns, the declared assets of taxpayers, the share of the shadow economy and 2.8 million taxpayers are to be reviewed.
Result of previous tax returns
Seven out of ten taxpayers will not pay any additional tax this year, with just under 30% paying an average tax of 1,826 euros.
Tax authorities are rolling out automated systems to handle late submission penalties instantly. Starting in 2025, if you file a tax return late through the official digital platform, the fine will pop up in your online account right away.
This is a shift from the old way, where fines could take months or even years to show up. Now, the penalty comes through immediately—no more waiting or wondering.
The following is provided for in these cases:
– A fine of 100 euros for amateurs (individuals),
– 250 euros for professionals with single books,
– 500 euros for professionals with double books.
After the tax payment deadline has expired, additional default interest of 0.73% per month will be charged, calculated on the basis of the difference between the original and the new declaration.
Alongside these instant fines, the new setup will collect Value Added Tax (VAT) in real time, right at the point of transaction. It’s all part of a bigger push to modernise tax administration and, honestly, keep a sharper eye on revenue.
Key features of the new system:
- Instant penalty calculation on late tax returns
- Immediate notification of fines in the taxpayer’s online profile
- Real-time VAT payment and verification during sales transactions
These updates should mean tighter control over tax compliance. Taxpayers get clearer deadlines and feedback on any late submissions or outstanding amounts, which is at least a bit more transparent than before.
Tax forms like income tax declarations and adjustments (including corrections) will be watched more closely under these automated rules. You’ll also see reminders about the annual flat-rate business tax and other charges—so, less chance of missing something important.
Deadlines are still a big deal. File on time and you might snag a tax discount if you pay in full right away. Miss the deadline, though, and it’s not just fines—you could lose out on those incentives too.
Date Range |
Discount on Tax Due |
Payment Condition |
|---|---|---|
By 15 June |
3% |
Full payment by 31 July |
16 June to 15 July |
2% |
Full payment by 31 July |
After 15 July |
No discount |
– |
Declared Wealth of Taxpayers
Taxpayers are expected to report all sorts of wealth in their tax returns—properties, vehicles, recreational boats, swimming pools, and bank deposits, both in Greece and abroad. It’s a pretty thorough list, honestly.
In 2024, over a million taxpayers declared rental income totaling about €4.7 billion. The average rent reported? Around €4,300 per year.
Expenses tied to housing—like rent for main residences and student accommodation—were also reported, with average monthly rents at €250 and €225 respectively. Not exactly cheap, but not wild either.
This results in an average cost of 250 euros per month for the rent of a primary residence and 225 euros for a student residence, while the average income from renting is 450 euros.
Or that only 2,500 households employ domestic workers and teachers. The data that emerges from the statements is impressive and many of them raise questions about the extent to which they correspond to reality.
Key figures declared by taxpayers:
More than 116,000 taxpayers bought or built a property in 2024, while 2,335,187 households declared that they live in a main residence that they own. Meanwhile, almost one in four taxpayers are burdened with loan obligations.
– 1,081,634 taxpayers reported rental income totalling €4.69 billion (an average of ~€4,300 per person).
– 1,672 people reported property income from abroad, with an average annual income of €12,000.
– 83,216 taxpayers reported foreign assets (real estate, bank accounts, investments).
– 21,277 reported €207.75 million in interest from foreign banks.
The tax returns reveal a high-consumption lifestyle characterised by public schools, yachts, luxury cars and domestic help:
– Over 5.4 million cars, 96,886 boats and 18,699 swimming pools were reported as living expenses – including 377 indoor swimming pools.
– 131,031 families paid over 600 million euros for private school fees.
– Hiring domestic help, chauffeurs or tutors accounted for 34.6 million euros in total expenditure, with an average of 13,787 euros per taxpayer.
– Electronic payments and card payments reached 59.47 billion euros, reflecting the shift to digital transactions and increased fiscal supervision.
These declarations help tax authorities get a sense of each taxpayer’s financial standing and check if income and assets are being reported accurately. It’s a bit of a “trust, but verify” situation.
Declared income of 120 billion euros – but expenditure of more than 160 billion euros
The gap between declared income and actual spending in Greece is, well, kind of huge. In 2024, household consumption is estimated at €163.6 billion, while declared income to the tax office is about €120 billion.
That means people are spending somewhere between €40-45 billion more than what they officially earn. It’s hard not to wonder how that’s even possible.
Year |
Declared Income (€ billion) |
Consumption (€ billion) |
Difference (€ billion) |
|---|---|---|---|
2019 |
75.2 |
128.4 |
53.2 |
2020 |
40 |
||
2024 |
120 |
163.6 |
43.6 |
This persistent difference is tied to the shadow economy, where transactions and incomes go unreported. The gap has shrunk since 2019, but it’s still big enough to make tax authorities sweat.
Some of the gap could be explained by spending from savings, but with savings rates negative lately, that doesn’t really cover it. It’s a pattern that keeps showing up, year after year.
Even though there’s been some progress in fighting the shadow economy, the fact that over €40 billion a year remains unaccounted for means there’s still a lot of work to do. It’s a stubborn problem, and it messes with government revenue in a big way.
High inflation and a recovering economy have pushed spending to record levels, too. The difference between declared income and what people are actually spending in 2024 reflects all these factors, even as the shadow economy slowly shrinks.
Tax Authorities Target 2.8 Million Taxpayers for Review
The tax office is gearing up for a big review of over 2.8 million taxpayers who declared annual incomes between €10,000 and €20,000. They’re looking for those whose reported spending just doesn’t line up with what they’re claiming to earn—basically, possible undeclared income or tax evasion.
This comes after a previous review that focused on incomes under €10,000. Back then, about 3.8 million returns were checked, and they found 20,000 cases where declared incomes were tiny, but spending was off the charts—sometimes tens or hundreds of thousands of Euros.
After a bunch of filtering, around 800 of those cases went into formal audits, and those are wrapping up with extra taxes and fines on the way. Now, the review is moving up the income ladder, using smarter, more advanced methods.
Tax returns with incomes up to €20,000 will be cross-checked against a bunch of different data sources. The goal is to build a clearer picture of what people are really earning and spending.
Methods and Data Sources for Cross-Checks
- Electronic transactions: Payments made by credit or debit card in all sectors—supermarkets, travel, leisure, you name it.
- Bank interest: Interest credited to personal accounts is checked to make sure it matches what’s been declared.
- Bank accounts activity: Accounts moving more than €100,000 in a year are flagged for a closer look.
- Loan repayments: Payments for mortgages or consumer loans are matched to claimed income levels.
- Asset purchases: Buying property, vehicles, or other pricey stuff? That gets checked too.
- Insurance payments: Premiums for life, accident, illness, or death insurance policies are reviewed as part of overall spending.
- Medical and hospital expenses: Private healthcare costs are included in the spending tally.
Specialist algorithms powered by artificial intelligence are digging through all this data, looking for anything that doesn’t add up. The tech is making these checks faster and, honestly, a lot tougher to slip through.
Criteria for Inclusion
Only taxpayers who reported income within the specified brackets are in the crosshairs. That way, the focus is on people most likely to have a real gap between their claimed income and how they actually live.
The review aims to catch cases where taxpayers might’ve underreported income to dodge taxes, even though their lifestyle or spending suggests they’re earning a lot more than they admit.
Next Steps
Once the new round of cross-checks wraps up, a handful of individuals will be under the microscope. Some might find themselves facing audits or a fresh look at their tax situation.
If undeclared income turns up, there’s a real chance of extra charges or fines. It’s not exactly a surprise, but still—never a fun letter to get.
