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Tax Evasion in Greece: Who’s Not Paying Taxes?

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Aerial view of Athens, Greece. Who is primarily responsible for tax evasion in Athens, Greece?
An estimated €45–50 billion in “black money,” or unreported income within Greece’s shadow economy, is currently in circulation. Credit: George E. Koronaios CC BY-SA 4.0

In 2025, the tax evasion rate identified during audits in Greece reached 29.7%, an increase of 2.6 percentage points compared to 2024, according to official data.

According to data from the independent authority AADE, automotive and motorcycle repair shops were identified as the “champions” of tax evasion, with a non-compliance rate reaching 61%. Following them were land and pipeline transport (58.1%) and rental/leasing activities (56.2%).

Non-compliance rates by sector:

Healthcare: 54%

Personal Services: 50.3%

Agriculture and Hunting: 40.8%

Wholesale Trade: 33.9%

Food Services (Restaurants/Cafés): 32.4%

Accommodation: 31.6%

Retail Trade: 29.3%

Food Industry: 28.8%

General Sectors: 19.1%

Throughout 2025, the AADE conducted 47,602 partial field audits across the country, significantly exceeding the annual target of 25,400. Although this volume was lower than the 56,654 audits performed in 2024, the identified non-compliance rate increased. In total, 11,146 audits resulted in documented violations, with a cumulative total of 178,718 individual tax infringements recorded.

Geographic distribution of tax evasion in Greece

Regional analysis shows that Western Greece recorded the highest non-compliance rate (39.9%), followed by the Peloponnese (39.6%) and Thessaly (38.2%). The lowest non-compliance rate was found in Western Macedonia (24.9%). Specifically, the Tax Offices of Patras and Piraeus reported the highest rates of non-compliance, particularly during audits conducted outside their primary jurisdiction.

Beyond the €3.1 billion in taxes and fines assessed by the AADE last year, the authorities implemented strict enforcement measures to ensure compliance:

680 business closures (temporary suspension of operations): 40.44% of these involved the food service industry, 33.68% involved agriculture/livestock, and 9% involved retail.

293 special monetary penalties were imposed on businesses.

Greece’s shadow economy: €50 billion escaping the tax net

An estimated €45–50 billion in “black money,” or unreported income within Greece’s shadow economy, is currently in circulation, accounting for nearly one in every five euros of GDP that escapes tax authorities’ oversight. This persists despite major strides in digitalization and ongoing efforts to combat tax evasion.

Recent data from the Centre of Planning and Economic Research (KEPE) underscores the scale of the challenge: the shadow economy in Greece stands at 20.9% of GDP. This is approximately 3.3 percentage points higher than the EU average, which currently sits at 17.6%.

Greece continues to rank among the highest in Europe, alongside countries like Italy and Poland. Remarkably, even with a significant reduction of 7.3 percentage points since 2003, Greece’s informal economy remains nearly double that of Germany or Ireland.

Related: One-Third of Greek Tourism Businesses Found Guilty of Tax Evasion

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