This year, Greeks will work six fewer days compared to 2024 to pay their taxes, marking the ‘Tax Freedom Day’ on Wednesday, June 25. From this day onward, people work to cover their personal needs rather than state obligations. It took 175 working days (about half a year) to settle tax and social contribution payments, according to the methodology of ‘Tax Freedom Day,’ which is based on European Commission data (AMECO). This study, published annually by KEFIM (Center for Liberal Studies), highlights the lowest tax burden since 2011, bringing Greece closer to the EU average of 175 days and ranking it 11th among EU countries in terms of tax burdens.
The Tax Freedom Day for 2025 falls on June 25, with predictions showing that Greeks will work 175 out of 365 days for the state, six days less than in 2024. Since 2019, the tax burden has decreased from 181 to 175 days. Among EU member states, Greece ranks 11th in tax burden for 2025, reaching the EU average. The country also ranks fourth in improving its tax burden reduction from 2019 to 2025, moving up two positions.
In terms of tax policy mix, indirect taxes (consumption taxes) are expected to further decrease relative to direct taxes (income and wealth taxes) in 2025. In 2023, indirect taxes were double those of direct taxes, marking the highest ratio since 1995. By 2025, indirect tax revenues are projected to be about 1.5 times higher than direct tax revenues. VAT remains the primary source of indirect tax revenue, accounting for 70.2% of total indirect taxes in 2024, compared to 68.8% in 2023.
Overestimation of tax revenues has increased the tax burden in recent years. For 2024, initial budget forecasts estimated approximately €35.1 billion in goods and services tax revenue but ended at €36.4 billion (+3.5%). Similarly, income tax revenue was initially forecasted at €21.6 billion but reached €24.2 billion (+11.8%). Corporate tax revenues showed an even greater deviation (+17.3%).
KEFIM Director Nikos Romapas stated that reducing the tax burden is good news for households and businesses but noted that achieving surpluses in recent years indicates significant room for further tax cuts to boost economic growth.
The annual Tax Freedom Day study calculates the day when Greek taxpayers are free from tax obligations if all earnings first go toward state duties before personal needs.