Tax

Sweeping checks and cross-checks are being launched by the Inland Revenue, which is targeting, among other things, tuition fees paid to private schools to confirm whether they are declared as living expenses.

The large increase in revenue from income and value-added tax - as the electronic tools for curbing tax evasion are paying off - provide the government with the leeway to move forward with permanent tax cuts as of 2025.

Prime Minister Kyriakos Mitsotakis reiterated his government's commitment to "gradual, fiscally sustainable tax cuts," enabled by increased state revenue from economic growth, GDP gains, debt reduction and a crackdown on tax evasion.

“Gradual, yet fiscally sustainable tax reductions remain our central choice,” emphasized Prime Minister Kyriakos Mitsotakis in his weekly review published on Facebook.

According to Mr. Mitsotakis, tax reductions are made possible due to increased state revenues and the reduction of debt, as well as the decrease in tax evasion.

According to Eurostat data, Bulgaria's tax-to-GDP ratio is among the lowest in the European Union. In 2023, the overall tax-to-GDP ratio for the EU, which includes the sum of taxes and net social contributions as a percentage of gross domestic product (GDP), was recorded at 40.0%. This figure represents a decrease from 40.7% in 2022.

The political establishment had at first appeared allergic to the idea of an independent agency tasked with detecting tax evasion and collecting public revenue. 

The government is launching a new round of tax cuts with a focus on direct income taxes. The signal was set by the prime minister and the minister of the national economy at the inauguration of the new AADE facilities, stressing that tax revenues will allow for new tax cuts.

Prime Minister Kyriakos Mitsotakis announced forthcoming tax cuts as Greece's economy stabilizes, with an eye on reducing VAT and income tax rates by the end of his term in 2027. 

The government's announcement of a "compassionate" tax break of up to 300 euros a month on tips earned via card payments was not met without complaints, as groups of workers doing equally hard and poorly paid jobs as waitstaff and delivery drivers also want to be included.

Even if a Greek is just having a quick coffee, they'll usually leave a few coins next to the cup. Especially if it's a regular spot where they know the server by name, they'd feel uncomfortable leaving without tipping. Until recently, most customer tips - usually in cash - would be pooled together and shared among the servers at the end of the shift.