The country’s Finance Ministry and the Independent Authority for Public Revenue (AADE) are leading the effort, aiming to build on the €2 billion already collected in 2024 from anti-evasion initiatives.
The government views this growing stream of revenue as a game changer. Starting in January 2026, these funds are expected to support a shift in economic policy, with lasting effects projected into 2027. Officials estimate that permanent revenue gains from curbing tax evasion could exceed €3 billion annually—a figure that would give the government more room to improve public services and ease the financial burden on households.
Part of the government’s strategy includes a revamp of the personal income tax system, with plans to reduce pressure on middle-income earners. Alongside this, a series of smaller, targeted measures are being designed to boost the incomes or benefits of vulnerable groups across society.
But all of this hinges on the success of both current and upcoming reforms. A major part of the projected revenue will come from the full implementation of a new system linking cash registers with card payment terminals (POS), which is being expanded across all sectors of the economy. Since this initiative will be in effect for the entire year, authorities believe it will significantly increase declared income and, by extension, tax receipts.
Greece is also targeting illicit trade and tax fraud, with an emphasis on improving VAT compliance. The government expects significant gains from tighter controls on VAT, including more intensive audits and reforms. In fact, VAT-related interventions alone are projected to yield €500 million above the target set in the national budget.
Authorities have identified substantial VAT losses from freelancers and small business operators. In response, the tax office is increasing the number and intensity of audits, particularly focusing on cases where businesses reported zero VAT despite having declared activity. Using digital data from 2023, officials will cross-reference filings to assess their accuracy.
Another major initiative involves cracking down on fraudulent VAT refund claims. In the past year, authorities uncovered elaborate schemes involving fictitious or triangular transactions designed to claim excessive refunds. This year, they plan to audit more than 4,000 VAT refund cases to recover improperly claimed amounts.
A significant procedural change is also being introduced starting April 1. Freelancers and small businesses using simplified bookkeeping methods will now be required to file VAT returns monthly instead of quarterly. This will also require them to remit VAT on a monthly basis. The measure applies to all new businesses starting from April, and will expand to those that opened in 2024 by July. From September, other professionals will be allowed to opt in voluntarily.
