Today marks Greece’s Tax Freedom Day, the symbolic date when citizens stop working solely to cover their tax and social security obligations and begin earning income for themselves.
According to a new study by the Center for Liberal Studies (KEFiM), in 2025, Greeks will work 175 out of 365 days — nearly half the year — just to meet their financial obligations to the state. This figure represents a six-day improvement compared to 2024 and reflects the lowest tax burden since 2011.
What Is Tax Freedom Day?
Tax Freedom Day is used internationally to visualize the weight of taxation on citizens. In Greece’s case, this year it falls on June 25, meaning every euro earned before this date would theoretically go toward paying taxes and mandatory social contributions. Only income earned from today onward would remain in the pockets of workers and businesses.
Greece’s Tax Burden in a European Context
Despite the drop, Greece still ranks 11th highest among EU countries in terms of tax burden in 2025 — exactly matching the EU average of 175 days. However, the country has shown significant progress: since 2019, Greece has improved its position by two ranks and reduced the number of “tax days” by six, from 181 to 175.
Countries with the highest tax burden in the European Union 2019, 2025 and difference 2025-2019.
Higher position = Larger Tax Burden. Source: AMECO Database
Shifting Tax Policy
KEFiM’s analysis highlights a gradual shift in Greece’s tax structure. In 2025, the share of revenue from indirect taxes (such as VAT and other consumption taxes) is expected to decline in relation to direct taxes (such as income and wealth taxes).
However, indirect taxes continue to dominate. In 2023, revenues from indirect taxes were double those from direct taxes — the highest ratio recorded since 1995. That ratio is expected to fall in 2025, but indirect taxes will still outpace direct taxes by 1.5 times.
Value-added tax (VAT) is the biggest contributor, accounting for 70.2% of all indirect tax revenue in 2024 — up from 68.8% in 2023.
Revenue Surplus Adds to the Burden
KEFiM’s study also draws attention to persistent revenue overperformance in recent years, which may intensify the effective tax burden despite policy efforts to lower it.
For example, Greece’s 2024 budget had projected €35.1 billion in tax revenue from goods and services. Recent estimates now put that figure at €36.4 billion — a 3.5% increase. Similarly, income tax revenue is now expected to reach €24.2 billion, far above the originally forecast €21.6 billion — an 11.8% rise, with corporate income taxes showing the largest increase at +17.3%.
Outlook and Commentary
KEFiM Director General Nikos Rompapas emphasized that the overall reduction in tax burden is a welcome development, particularly for households and businesses. However, he noted that persistent revenue overcollection signals that there’s still room for further tax cuts, especially if Greece aims to stimulate stronger economic growth.
“Reducing the tax burden is good news,” Rompapas said, “but the consistent generation of large surpluses shows there is real potential for deeper tax relief that could energize the economy.”
