Tax evasion in Greece continues to reach significant levels, according to data comparing declared incomes with households’ actual consumer spending. Income declared to the tax authorities for 2024 totaled €112 billion, while consumption reached €163.6 billion - revealing a gap of €51 billion. This discrepancy reflects the scale of the «shadow» economy, amounting to roughly 22% of GDP, well above the European Union average of 17.6%.
Although the picture has improved slightly since 2019, when the gap between income and consumption exceeded €53 billion, the figures confirm that tax evasion remains a structural problem for the Greek economy.
Facing this reality, the Independent Authority for Public Revenue is preparing a comprehensive overhaul of enforcement and tax-evasion prevention mechanisms starting in 2026, leveraging technology and real-time data as its main tools. At the core of the plan is the full digitisation of transactions, including mandatory e-invoicing, digital recording of delivery notes, and the creation of digital client registries for large cash transactions. At the same time, advanced data-analysis and business-intelligence systems will enable continuous monitoring of corporate financial activity and the early detection of suspicious behaviour.
Particular emphasis is also being placed on the new Property Ownership and Management Registry, expected to go live in 2026, which will give tax authorities a complete picture of every property - its use and the income it generates. The aim is to identify undeclared homes and unregistered leases, long-standing hotspots of tax evasion. In the same vein, cryptocurrencies will come under closer scrutiny through the establishment of a clear tax framework aligned with EU legislation.
Through this new model, the tax authority aims from 2026 onward to curb the undeclared economy. However, despite the ambitious announcements and the sweeping digital transformation planned, serious doubts remain about whether the new system can deliver a substantial reduction in tax evasion. Experience from past years suggests that technology alone cannot resolve such a deeply rooted, multifaceted phenomenon - one tied not only to the structure of the economy but also to long-standing attitudes toward taxation.
