The highest tax rate on labour across the European Union, the greatest increase in the share of VAT in all tax revenues and the highest income from environmental taxes as a percentage of GDP was presented by Greece in 2024.
These are the conclusions from the European Commission's annual tax report 2026.
Moreover, according to the report, our country in 2024 was third in the EU. the share of property taxes on all tax revenue.
However, as regards the total amount of tax revenue as a percentage of GDP, the report shows that Greece was 2024 in the ninth place in all 27 EU member countries, as tax revenues in our country amounted to 40% of GDP and were above the EU average (39.4%). According to the Commission's forecasts, however, this percentage will have decreased by 0.7% of GDP by 2027 and will have been set at 39.3%, thus recording the third largest decline in the EU as a whole. and have retreated to 12th place in the EU, falling below the EU average (40.1%).
The report records developments in the tax revenue and taxation policies of the EU Member States, with data on revenue progress by 2024, with forecasts of revenue progress by 2027, as well as references to tax reforms enacted for the years 2025-2026.
The main conclusions of the report on our country regarding tax revenue developments by 2024 are as follows:
1) Greece recorded the highest tax rate on labour in the EU.
Greece had in 2024 the highest indirect tax rate on labour throughout the European Union, while in the same year it had the second largest increase in this index throughout the EU.
The indirect tax rate (ITR) on labour measures the total tax burden on all income from paid employment. It results by dividing income from taxes and social contributions on income from paid employment with the total remuneration of workers (including wage taxes). For example, of every 100 euros the total cost of wage labour in the economy, this indicator illustrates how much amounts end up in the state as a wage income tax + employee contributions + employer contributions + any payroll taxes.
With regard to this indicator, the report notes: «Despite the overall decrease at EU level, the indirect tax rate (ITR) on labour has increased to 15 member states over the last decade. The EU's total ITR on labour stabilised in 2024 to 37.1%, 0.1 percentage point above 2023. In 2024, Greece (44.8%) had the highest ITR on EU work, followed by Italy (43.9%) and Belgium (40.7%). Malta (24.4%), Bulgaria (24.9%) and Croatia (29.2%) had the lowest rate. At EU level, the rate of labour taxation has shown a declining trend over the last decade (38.2% in 2014), although the results have shown large differences between Member States. The rate was increased to 15 member states, with Cyprus taking first place (a 8.8 percentage point increase), followed by Greece (a 3.4 percentage point increase) and Spain (a 3.0 percentage point increase)».
2) Greece from 2014 to 2024 had the biggest increase in VAT revenue participation in total tax revenue.
According to what is stated in the report: «Since 2014, VAT revenue has gained more weight in the tax composition of 14 Member States, with Greece recording the biggest increase. Croatia is the Member State with the highest VAT dependence (34.7% of the total in 2024), followed by Bulgaria (30.6%) and Latvia (27.3%) ... Examining the development over the last decade, the largest increase in VAT share occurred in Greece (by 3.1 percentage points as of 2014), followed by Hungary (2.3 percentage points) and Italy (1.8 percentage points)».
(3) Greece was among the three EU member countries that had no reduction in the share of consumption taxes in total tax revenues, during the period 2014-2020, when in all other EU member states. This share has been reduced.
The report shows, in particular, the following: «The share of consumption taxes in total EU tax revenue fell from 28.3% in 2014 to 26.8% in 2024, with reductions in all Member States except three (Hungary, Greece and France)».
(4) From 2014 to 2024 Greece recorded the second largest reduction in the indirect tax rate (ITR) on consumption throughout the EU.
On the basis of what is stated in the report, «at national level, the consumption index (ITR) has been reduced to 15 Member States since 2014, with the largest reductions recorded in Slovenia (-3-0 percentage points), Greece and Belgium (-2.6 percentage points in both countries)».
(5) Greece was in 2024 second in the EU. in dependence on environmental taxes and first in the EU. in percentage of environmental taxes on GDP.
According to the report, Bulgaria (9.7% of total tax revenue), Greece (9.4%) and Poland (8.7%) were in 2024 the Member States with the greatest dependence on environmental taxes ... In 2024, Greece (3.8% of GDP), Croatia (3.4%), the Netherlands, Bulgaria and Slovenia (3.0% each) were the Member States with the highest income from environmental taxes».
(6) Greece is third in the EU. the share of property taxes in total tax revenue, but in the period 2014-2020 This share recorded in our country the second largest decline throughout the EU.
According to the data in the report, «In 2024 property taxes accounted for 7.9% of total tax revenue in France, 7.4% in Belgium and 6.6% in Greece, but less than 2% in Austria, Cyprus, Czech Republic, Estonia, Lithuania, Slovenia and Slovakia.
Compared to 2014, the largest reductions in this percentage were recorded in Ireland (by -2.7 percentage points), Greece and Cyprus (by -2.2 percentage points in both)».
In addition, the report points out that Greece is not the only country in the world. «obsolete objective values, in a context of rapidly increasing housing prices, undermine the tax base of repeated taxes on immovable property» and that «the slowdown of real estate transactions and the reduced lending capacity, in a context of increasing interest rates, burden the tax revenue on transactions».
(7) Greece in the EU has the third highest percentage of citizens who resort to accounting assistance to submit tax returns.
According to what is recorded in the Eurobarometer survey report: «On average, 8% of respondents in the EU. declares that it uses professional assistance to submit the tax declaration. The use of professional assistance to supplement tax returns is more widespread in Italy, where 25% of respondents say it uses professional assistance. High levels of professional tax counseling are also recorded in Slovakia (19%), Greece (18%) and the Czech Republic (15%). Some countries have relatively high levels of professional tax advice, although a large proportion of respondents consider making tax declarations easy. The Netherlands (68% easy, 10% professional), Spain (52% easy, 11% professional) and Cyprus (51% easy submission, 12% professional) stand out in this respect».
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