Greece remains in the lower half of the developed world’s tax-competitiveness rankings, as high consumption taxes, complex property levies and restrictions on businesses offset the benefits of relatively low corporate taxation.
The country ranked 23rd among 38 Organization for Economic Cooperation and Development members in the 2026 International Tax Competitiveness Index, unchanged from last year, according to a study by the Washington-based Tax Foundation presented in Greece by the Center for Liberal Studies, or KEFiM.
Greece scored 65.9 out of 100, a marginal improvement from 65.7 in 2025, highlighting the limited progress in addressing structural weaknesses in its tax system.
The findings underscore a challenge for Athens as it seeks to attract foreign investment and strengthen economic growth following its prolonged debt crisis.
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Greece performs particularly well in individual taxation, ranking fifth among OECD countries. Its corporate tax system ranks 22nd, while international tax rules place 19th. The picture deteriorates sharply in consumption and property taxation, where Greece ranks 29th and 30th, respectively.
A major weakness is the country's 24% standard value-added tax, among the highest in the OECD. Despite the elevated rate, VAT applies to just 44% of final consumption, reflecting numerous exemptions and reduced rates that narrow the tax base. Property taxation presents another obstacle. Greece imposes multiple levies on real-estate transfers, inheritances, capital increases and financial transactions, alongside a special bank levy.
The accumulation of taxes increases transaction costs and complicates investment decisions. Businesses also face restrictions on carrying forward tax losses to offset future profits, while carrying losses backward against previous years' earnings isn't permitted. Such limitations can particularly affect companies undertaking capital-intensive investments with substantial upfront costs.
Nevertheless, Greece retains significant advantages for investors. Its dividend tax stands at just 5%, compared with an OECD average of 24.7%, while the corporate income-tax rate is 22%, below the OECD average of 24.2%. Certain capital gains on listed shares are also exempt from taxation.
Estonia topped the competitiveness rankings for the 13th consecutive year, followed by Latvia and New Zealand. France ranked last. The report points to three potential reform priorities: broadening the VAT base, simplifying property taxation and relaxing restrictions on business-loss deductions. Expanding VAT coverage could improve efficiency but might raise prices for households unless accompanied by targeted relief or lower rates.
