Greek tax authorities are preparing changes to the country's presumptive income tax system for self-employed workers, aiming to ease financial burdens on low earners while rewarding compliant taxpayers.
The Ministry of Economy and Finance is reviewing the tax rules as digital audit tools expand, curbing tax evasion and creating fiscal space for targeted relief.
The primary objective of the policy shift is to capture revenue that currently remains outside the tax system, including both income tax and value-added tax.
Under the planned adjustments, government officials are examining ways to limit the tax burden that presumptive criteria place on specific categories of professionals.
Addressing presumptive tax burdens
Greece introduced its current presumptive income determination system in 2023 for self-employed professionals and sole proprietorships. The system estimates taxable income using objective indicators rather than relying solely on reported earnings, a method historically used in Greece to combat tax evasion among sole traders.
However, the application of the 2023 rules highlighted cases where professionals with genuinely low economic activity were taxed on imputed income higher than what they actually earned.
Tax consultant Stelios Nomikos explained that the ongoing effort focuses on identifying undeclared income and unreported transactions. He noted that additional tax revenues generated from these audits will fund relief measures and support the gradual reduction of presumptive tax burdens.
Tax officials anticipate that as electronic transaction data provides a clearer picture of actual business activity, horizontal presumptive formulas can gradually be phased down.
Expanding the digital audit network
Central to the new approach is an expanding suite of digital inspection tools managed by the Independent Authority for Public Revenue, known as AADE. AADE operates as Greece's autonomous tax administration agency responsible for revenue collection and compliance enforcement.
The digital network connects point of sale terminals, cash registers, and the myDATA platform. myDATA is Greece's official electronic bookkeeping system where businesses report transaction details online.
Tax authorities are expanding this infrastructure by integrating digital delivery notes and electronic invoicing. The requirement for every transaction to leave an immediate electronic trace restricts opportunities to conceal turnover and allows inspectors to perform targeted cross-checks.
By improving transaction tracking, authorities aim to simultaneously curb income tax evasion and VAT concealment. Officials believe that as digital monitoring grows stronger, the theoretical need for horizontal presumptive calculation tools diminishes.
Incentives for tax compliance
Alongside tax relief for low earners, government planners are developing a framework to reward consistently compliant taxpayers. Under the proposed model, tax behavior will be evaluated comprehensively rather than relying strictly on annual declared income.
A taxpayer's overall evaluation will factor in timely tax payments, the absence of overdue state debts, and general consistency in meeting public obligations.
Nomikos noted that the government economic team is now actively rewarding tax-compliant professionals. He explained that digital data gathered by AADE will allow authorities to maintain a continuous tax logbook for each professional.
This digital history will record taxpayer compliance over time, identifying individuals who consistently fulfill their obligations on schedule. In the future, this record will serve as the foundation for specific tax incentives and administrative facilities.
Credit certificates and financial access
Evaluating economic behavior will also extend beyond relationships with the tax administration into the broader commercial market. AADE and digital public services are integrating creditworthiness certificates issued through gov.gr, the central portal for Greek public sector digital services.
The creditworthiness certificate provides commercial banks and market lenders with a complete picture of an individual's financial reliability. Consistent fulfillment of tax and debt obligations is expected to improve credit assessments for business financing.
Government officials view these measures as a transition from rigid presumptive taxation to a data-driven model grounded in real-time electronic records. Broadening the tax base through digital compliance is intended to secure lasting tax reductions for compliant self-employed workers.
