Tax Gap Greece

About Tax Gap Greece

Greece has one of the highest tax evasion rates in the EU. The Greek tax gap was estimated at approximately 30 billion annually before the debt crisis. The crisis forced Greece to implement reforms under EU and IMF pressure. The Greek government implemented a new property tax, the ENFIA, which was highly controversial but effective at reducing evasion on real estate. Greece also created a financial crimes unit, SDOE, to investigate high net worth evasion. Despite these efforts, Greek tax collection remains weak. The Greek tax authority has been criticized for targeting ordinary taxpayers while ignoring powerful interests. Swimming pool owners were found to be massively underreporting. Greek tax evasion contributed to the sovereign debt crisis by reducing government revenue and creating an unsustainable fiscal position that required international bailouts.