Tax evasion in Greece: Prohibition of cash payments over 500 euros

An end to cash transactions of more than 500 euros is being attempted by the government’s financial staff in an effort to crack down on tax evasion.

With the new tax bill from the beginning of 2024, comes the complete ban on the use of cash in transactions over 500 euros.

Under the new provision, those who accept cash payments above this limit will be fined up to double the transaction. In other words, if businesses or professionals accept 2,000 euros in cash from a customer, they will lose 4,000 euros!

The increase in the fine for using cash in transactions over 500 euros, to twice the amount of the transaction, was deemed necessary because the 100 euro fine did not deter many from preferring to pay in cash.

At the same time, from the spring of 2024, cash will be replaced by “POS everywhere”. For every card payment, a receipt will automatically “ring” at the store’s cash register, as well as a “bell” at the Independent Public Revenue Authority-AADE of what and how it was paid by card.

According to the Bank of Greece, card payments in Greece (especially after the capital controls of 2015 and the 2020 pandemic) continue to make great progress: the average value per card transaction has fallen well below 50 euros (to 46 euros in the first half of 2023, from 48 euros in the second half of 2022 and over 50 in 2021).

BoG Gov Stournaras on tax evasion

The Governor of the Bank of Greece, Yannis Stournaras, in his speech on the topic: “Fiscal developments – Combating Tax Evasion” at the 19th Tax Forum, at the Atheneum Intercontinental Hotel, emphasized that “the fight against tax evasion and a fairer distribution of tax burdens should receive priority”.

Mr. Stournaras presented a series of policy proposals aimed at addressing the problem in order to ensure the overperformance of tax revenues including the further expansion of electronic transactions by extending the use of portable transaction machines (POS) to more economic activities.