Greece’s tax administration has undergone a sweeping overhaul over the past 15 years, delivering sharp gains in revenue collection and compliance after decades of underperformance, according to a new report by the International Monetary Fund.
The study, which reviews reforms from 2010 through 2025, portrays a system reshaped by crisis and rebuilt through a combination of institutional changes and rapid digitalization. It finds that measures introduced during and after the country’s sovereign debt crisis have significantly narrowed tax gaps and improved the state’s ability to collect what it is owed—without raising tax rates.
When Greece entered the reform period in 2010, its tax administration was widely seen as ineffective. The economic crisis exposed longstanding weaknesses, including widespread tax evasion, limited use of technology and a fragmented bureaucratic structure that hindered enforcement. Against that backdrop, authorities embarked on a multiyear effort to modernize the system, backed by international lenders.
The initial phase focused on stabilizing revenues. Between 2010 and 2012, tax authorities intensified audits and introduced early digital tools, including electronic filing for value-added tax. Dedicated units were set up to monitor large taxpayers and high-income individuals, marking a shift toward more targeted enforcement. More fundamental changes followed. From 2013 to 2017, Greece established an independent revenue authority, granting it greater operational autonomy and insulating it from political interference. Legal reforms streamlined tax procedures, while administrative restructuring consolidated services and clarified responsibilities within the system.
In recent years, the focus has shifted to technology. A key development has been the rollout of the myDATA platform, which enables near real-time reporting of business transactions. The mandatory electronic transmission of data has increased transparency and curtailed opportunities for tax evasion, while the use of data analytics and automated checks has improved the efficiency of audits.
The results have been striking. Tax revenues as a share of economic output have risen, while the so-called VAT compliance gap—a measure of lost revenue—has dropped dramatically, from about 30% in 2011 to 9% in 2024. The IMF attributes this improvement largely to better administration rather than higher tax burdens.
Digital adoption has also transformed the day-to-day experience of taxpayers. Nearly all filings and payments are now conducted online, reducing bureaucracy and easing compliance for businesses and individuals alike. At the same time, authorities are increasingly relying on risk-based tools to focus enforcement efforts where they are most needed. Still, the report cautions that challenges remain. Resistance to organizational change persists within parts of the system, while resource constraints and delays in some digital projects continue to pose obstacles. A large stock of overdue tax debt, much of it dating back to the crisis years, is also proving difficult to recover.
The IMF argues that Greece’s experience offers broader lessons. Institutional independence, it says, has been critical to building credibility and sustaining reform. Equally important has been the sequencing of changes, with legal and organizational reforms laying the groundwork for later technological advances. Looking ahead, the fund stresses that continued investment in technology and data systems will be essential, but warns that digital tools alone are not sufficient. Strengthening the workforce, improving training and managing internal change will be key to maintaining momentum.
