Greece is grappling with a growing mountain of unpaid debts to the state, which reached €110.6 billion by the end of January 2025—an increase of €3.6 billion compared to the previous year, according to a new report from the Parliamentary Budget Office.
The figure highlights the ongoing challenge faced by Greek authorities in collecting public revenue, as nearly one-quarter of the total—€26.3 billion—is considered virtually impossible to recover. When these unrecoverable debts are excluded, the net total of collectible arrears stands at €84.2 billion.
The increase in overdue debts is primarily driven by €8.6 billion in newly accumulated liabilities over the past year, alongside €2.2 billion in older debts that were formally recorded in the same period. These were only partially offset by €7.2 billion in collections and debt write-offs.
Tax-related arrears represent the largest share of unpaid obligations, amounting to €51.1 billion—roughly 60.6% of the collectible total. Fines account for another €24.4 billion, while €8.8 billion comes from non-tax liabilities such as loans and court-imposed penalties.
A significant portion of the tax debt is practically unrecoverable due to the financial condition of debtors. Some €8.7 billion is tied to insolvent individuals or businesses, and €14.6 billion consists of debts that are more than a decade old.
Interestingly, the bulk of revenue collected by the state comes from a relatively small pool of debt. Over 90% of all collections stem from just 32.8% of the total collectible arrears, underlining how difficult it is for the government to recover the rest.
The distribution of debt also reveals a striking imbalance. While 90% of all debtors owe less than €10,000, their combined arrears make up just 3.6% of the total. In contrast, a mere 0.3% of debtors—those with obligations exceeding €1 million—account for a staggering 76.2% of all outstanding state debt.
There is also a clear divide between individuals and companies. Personal debts make up 38.5% of the total, or €42.5 billion, while legal entities are responsible for the remaining €68 billion (61.5%).
Despite the worrying numbers, the report also highlights positive developments in Greece’s tax collection system. The tax gap—the difference between what the state is owed and what it actually collects—has narrowed significantly in recent years. In 2024, it dropped to just 0.8%, the lowest level in two decades, thanks to improved efficiency within the country’s tax administration.
Between 2020 and 2024, the average tax rate in Greece increased by 11.8%, while the effective tax rate rose by 15.7%. This contributed to a 64% increase in public revenue, while collection performance improved by 3.5%.
By contrast, during the peak of the Greek financial crisis in 2014, the tax gap soared to 7.2%, driven by high tax rates and a sharp decline in citizens' ability to pay. The gap gradually narrowed during the recovery years (2016–2019), falling to 1.2% as economic conditions stabilized.
