Tax breaks in Greece have soared by an astonishing 650% over the past decade, yet inequality has only deepened. The question now dominating public debate is who actually benefits from the 1,236 exemptions that cost the state €22.8 billion this year.
Figures published in the tax-expenditure report attached to Greece’s 2026 state budget show that the value of tax breaks climbed to €22.8 billion in 2024, up sharply from €18.82 billion in 2023 and €15.5 billion in 2022. The €4-billion jump within a single year—an increase of more than 21%—has done little to support vulnerable households. Although some relief measures are designed for low-income or disadvantaged groups, the overall structure skews heavily toward those with substantial assets or access to specialised tax regimes. The steady expansion of these exemptions underscores not only the complexity of the Greek tax system, but also the social and economic imbalances it reproduces.
The official list of tax exemptions included in the 2026 budget has grown to 1,236, up from 1,106 last year. This 11.8% increase reflects the proliferation of special arrangements and alternative tax frameworks. In 2020, tax exemptions amounted to €8.9 billion; in 2016, they were just €3.04 billion. The cumulative rise—650% in less than a decade—illustrates the dramatic widening of these preferential measures.
The largest share of tax relief is concentrated in capital taxation, where exemptions exceed €9.06 billion. Corporate income tax breaks amount to €5.8 billion, driven by incentives intended to boost competitiveness, encourage innovation, or ease the burden on specific industries. Personal income tax exemptions add another €4.94 billion and mainly benefit families with dependents, people with disabilities, farmers, and residents of remote regions, along with various deductions and adjustments tied to imputed income and eligible expenses.
Indirect taxes also contribute significantly to lost revenue. Reduced VAT rates applied to essential goods, tourism and hospitality services cost the state roughly €1 billion. Excise duties generate more than €1 billion in losses, while the newly introduced digital transaction charge—which replaced stamp duties—adds a further €72.88 million to the total.
Smaller categories complete the picture: the luxury tax brings just €200,000 in relief, the capital concentration tax €17.2 million, and vehicle registration fees €24.49 million. An additional €20.5 million is attributed to “Other taxes,” illustrating a system increasingly shaped by exceptions and preferential treatment.
