Greece is introducing sweeping changes to the taxation of passenger vehicles, with new incentives for hybrid and electric cars alongside stricter enforcement measures powered by artificial intelligence.
The move comes as Greece grapples with one of the oldest vehicle fleets in the European Union. Policymakers have long struggled to encourage drivers to replace aging cars with cleaner, more fuel-efficient models.
New Incentives for Cleaner Vehicles
Under the new framework, hybrid vehicles will benefit from a 50% reduction in registration tax, regardless of their CO₂ emissions levels.
Fully electric and other zero-emission vehicles will be exempt from registration tax altogether. A transitional provision also grants a 75% discount for vehicles emitting up to 75 grams of CO₂ per kilometer, provided they were imported into Greece between November 1, 2025, and May 31, 2026.
At the same time, the government is narrowing some existing tax benefits. The exemption that applied to compensation and benefits-in-kind for low-emission hybrid company cars emitting up to 50 grams of CO₂ per kilometer will be abolished. Going forward, preferential tax treatment will apply exclusively to zero-emission vehicles.
The measures apply to vehicles acquired after the legislation enters into force and cover cars with a pre-tax retail value of up to €40,000. Company cars with a pre-tax retail value of €20,000 or more will continue to be subject to benefits-in-kind taxation.
For example, a vehicle with a pre-tax value of €25,000 would generate a taxable benefit-in-kind of €3,900, resulting in an estimated tax burden of around €1,000 for an employee earning €1,400 per month.
AI to Help Crack Down on Violations
The government is also stepping up enforcement against uninsured vehicles, cars declared off the road but still in circulation, and owners who have failed to pay road taxes.
The scale of the problem is significant. Official figures show that:
- 125,051 vehicles are uninsured;
- 170,000 vehicles have unpaid road taxes; and
- between 700,000 and 2.9 million vehicles are estimated not to have undergone the mandatory technical inspection, known as KTEO.
Authorities hope that the use of artificial intelligence will help identify violations more efficiently and improve compliance.
The new system is also intended to address lengthy delays in the processing of appeals against fines and penalties.
How the Appeals Process Will Work
Citizens will be able to submit appeals through the government’s “Cross-Checks” digital platform, uploading the necessary supporting documents within ten working days.
Artificial intelligence will carry out an initial review of the documentation, assessing its validity and relevance to the appeal. The final decision, however, will remain in the hands of a government official.
Authorities say applicants will receive a response within 30 working days of filing an appeal, a measure aimed at improving transparency and speeding up service for citizens.
