Greece Targets €1.5 Billion Extra Income Tax Revenue by 2025

The Independent Authority for Public Revenue (AADE) has set an ambitious target to increase income tax revenue by €1.5 billion for the year 2025. According to the Strategic Plan 2025, unveiled on March 19, 2025, income tax revenues are expected to rise to €25.519 billion from €23.992 billion collected in 2024. In line with recent statements by Kyriakos Mitsotakis and Kyriakos Pierakkis during the prime minister’s visit to the Ministry of Finance, the new finance minister will continue the fight against tax evasion, particularly focusing on hidden incomes of freelancers. AADE aims to collect €1.527 billion more than last year, necessitating extensive coordination and intensifying digital modernization efforts, including tools like myDATA, digital invoicing, and electronic receipts. Despite ongoing tax cuts, VAT revenues are also projected to increase, reaching €26.645 billion from €25.561 billion in 2024. This growth is attributed to high economic growth rates and consumer demand, alongside reduced tax evasion among professionals. AADE targets a compliance rate of at least 98% for VAT submissions, 54% resolution of first-time overdue debts, and collection of 40% of ‘red’ overdue debts. Overall, the authority aims for at least 85% timely payments for VAT, income taxes, and property taxes.