Greeks are working six fewer days to pay their taxes this year, with the country’s symbolic "Tax Freedom Day" falling on June 25, the earliest it has been in 14 years, according to a new study by the Center for Liberal Studies (KEFiM).
The annual report from the Athens-based think tank calculates that the average citizen will work for 175 days in 2025 to pay their direct and indirect taxes and social security contributions before they start earning for themselves.
The milestone, a closely watched indicator of the overall tax burden, reflects a modest but symbolically important sign of relief for taxpayers after years of fiscal hardship.
The improvement brings Greece in line with the European Union average and is a significant shift from 2024, when the date fell six days later.
However, the report also highlights that the state’s tax revenues are consistently and dramatically outperforming budget projections, fueling a debate about whether there is room for deeper tax cuts. In 2024, income tax revenues are set to overshoot their target by nearly 12%, while corporate tax collections are on track to exceed projections by over 17%.
“The reduction in tax burden is welcome news for households and businesses,” said Nikos Rompapas, KEFiM’s General Director. “But the consistent overperformance of state revenues shows there’s still room for further tax cuts to support stronger economic growth.”
The study also notes Greece's continued heavy reliance on indirect taxes like VAT, which critics argue disproportionately affects lower-income groups and consumption.
While the overall tax burden has lightened, the structure of the tax system remains a central issue in the country’s ongoing debate about how to best encourage sustainable economic growth.