Greece Cracks Down on Summer Tax Evasion

Greece’s Independent Authority for Public Revenue (AADE) uncovered a wave of tax evasion during the summer season, following thousands of inspections carried out between May and September 2025 across the country — particularly in popular tourist destinations.

The intensified inspections resulted in 300 business closures and millions in fines, highlighting persistent tax evasion in sectors tied to tourism such as restaurants, bars, hotels, and beach rental services.

Crete and the Peloponnese lead in violations

The highest rates of tax violations were recorded in Crete and the Peloponnese, where non-compliance exceeded 40% in several regional units. Specific hotspots included Achaia, Laconia, Chania, and Heraklion. Other regions with elevated rates included Western Greece and Central Greece, while Northern Aegean and Macedonia reported lower figures.

Nearly 41% of all audits targeted tourism-related businesses, revealing irregularities in 33.7% of cases.

Coordinated operations and penalties

Inspectors conducted coordinated operations across islands and mainland resorts, including the high-profile “Cruise Operation”, which targeted day-cruise operators in Santorini, Kos, and other islands.

Businesses found guilty of non-compliance faced fines and temporary shutdowns, usually between 48 and 96 hours.

• In Heraklion, Crete, a restaurant that failed to report over 18,500 receipts worth €275,000 received a four-day closure.
• In Paros, a woodworking business that failed to connect its POS system to tax servers was fined €33,000.
• In Mykonos, several high-end restaurants and shops were penalized for issuing no receipts, with undeclared transactions exceeding €100,000.
• In Santorini, two beach bars were fined for failing to issue receipts worth over €2,700, while similar cases were found on Rhodes, Paxos, and Samos.

A national issue beyond the islands

AADE inspectors also targeted non-tourist areas, including hair salons, retail stores, and supermarkets, where widespread underreporting and missing digital transactions were uncovered.

In total, 202 businesses were found to be operating without connecting their POS terminals to tax systems, resulting in penalties amounting to €2.59 million.

“Summer of tax evasion”

The AADE described the summer as a “tax evasion season,” with particular concern over the scale of undeclared income in high-tourism regions. The authority pledged to maintain real-time data cross-checks and expand AI-driven auditing tools for next year’s tourist season.

Source: tovima.com