2024 Tax Competitiveness Index: Greece 27th of 38 OECD Countries

The data showed Greek tax system has notable strengths. For instance, the net personal tax rate on dividends is just 5 percent, significantly lower than the OECD average of 24.7 percent. Additionally, Greece’s corporate income tax rate of 22 percent is also below the OECD average of 23.9 percent, making it a more attractive environment for businesses. Furthermore, Greece’s Controlled Foreign Corporation (CFC) rules are relatively modest and only apply to passive income, which provides some flexibility for international business operations.

However, the Greek tax system also has its weaknesses. Companies in Greece face severe limitations in how much net operating losses they can use to offset future profits, and they are unable to apply these losses retroactively to reduce past taxable income. There is also a relatively narrow tax treaty network, with Greece having only 58 treaties compared to the OECD average of 75, which can limit opportunities for international tax cooperation. Finally, Greece imposes a high VAT rate of 24 percent, one of the highest in the OECD, but it is applied to a particularly narrow base, covering only 37 percent of final consumption.