The Bank of Greece (BoG) is urging stronger adoption of electronic payments as a key tool to tackle tax evasion. In its Monetary Policy Report for 2026, submitted to Parliament on Tuesday, 23 June 2026, the central bank advocates for tax incentives to encourage citizens to use digital channels when interacting with public services — aiming to make undeclared transactions increasingly untenable.
Progress — But More Is Needed
The BoG acknowledges measurable progress in tax compliance over recent years: card-based payments have risen, point-of-sale (POS) terminals have expanded, and cash usage has gradually declined. Still, it stresses that sustained efforts are essential — particularly through targeted fiscal incentives for consumers, which help bring previously hidden transactions into the formal economy.
Despite this advancement, the report notes that the VAT gap — the difference between expected and collected VAT — remains significant. Likewise, the discrepancy between actual household consumption and declared income continues to pose challenges. To narrow these gaps, the BoG recommends accelerating the shift toward electronic payments while intensifying audits — especially in sectors dominated by self-employed professionals and freelancers, where cash transactions remain prevalent.
Growing Adoption of Digital Payments
Data cited in the report shows steady growth in digital payment infrastructure. By end-March 2026, Greece had nearly 23.6 million active payment cards — a 6% increase year-on-year compared to March 2025. Around 85% of those were debit cards, with prepaid cards also showing notable growth.
In Q1 2026 alone, card transactions totaled nearly 658.3 million — up 11.7% annually — with a total value of €18.45 billion, rising from €16.7 billion in the same period of 2025. This trend reflects a broader structural shift toward digital payments across the Greek economy.
According to the latest European Central Bank (ECB) data for H1 2025, 73% of all electronic payments in Greece were made via cards — placing the country third in the euro area, behind only Portugal and Cyprus.
Inflation Pressures Remain
The report also highlights persistent inflationary pressures, driven largely by elevated energy and food prices — a factor complicating the broader macroeconomic outlook.