Greece ranks 27th among the 38 OECD countries in this year’s International Tax Competitiveness Index, according to the report published by the Center for Liberal Studies (KEFIM), in collaboration with the Tax Foundation.

The ranking of Greece remains unchanged compared to 2023. It is worth noting that our country is located between Belgium, which occupies the 26th position, and Denmark, which occupies the 28th position.

It is noteworthy that below Greece are the United Kingdom, Spain, Iceland, Portugal, while the 36th and 37th places are occupied by France and Italy respectively.

Specifically, for 2023, Greece gathers a total score of 60.9 in the Index. Regarding the individual categories of the Index, Greece is ranked as follows:

  • 17th place in corporate taxation,
  • 9th place in personal taxation,
  • 34th place in consumption taxation,
  • 27th in property taxes,
  • 21st place in taxation of profits abroad.

The authors of this year’s report highlight certain weaknesses of the Greek tax system:

  • Companies in Greece face strict limits on the amounts of net losses they can use to offset future profits. They also cannot use losses to reduce taxable income from previous years.
  • Greece has a relatively limited number of tax treaties (58 treaties against the OECD average of 75).
  • The VAT rate in Greece is one of the highest in the OECD (24%), with one of the most limited tax bases, as it covers only 37% of final consumption.

Despite the above weaknesses, there are also positive points in the Greek tax system:

  • The tax rate on dividends for individuals is 5%, significantly lower than the OECD average (24.7%).
  • The corporate income tax rate is 22%, also lower than the OECD average (23.9%).
  • Controlled Foreign Corporation (CFC) regulations are moderate and apply mainly to passive income.

For the eleventh consecutive year, Estonia is ranked as the country with the most competitive tax code, while the last place (38th) is occupied by Colombia. Greece is ranked this year between Belgium (26th) and Denmark (28th).

The Executive Director of KEFIM, Nikos Rompapas, commented:

“Greece’s consistently low position in the International Tax Competitiveness Index can be significantly improved, even without the necessary horizontal relief of the tax burden that citizens and businesses currently face. As this year’s study demonstrates, interventions such as changing the depreciation regime and raising the threshold from which the top personal income tax bracket starts should be immediate government policy priorities.”

Tax Foundation President and CEO Daniel Bunn said:

“With elections to be held in many countries this year, significant changes in tax policy worldwide are expected. The tax landscape continues to evolve, and policymakers must prioritize improving their countries’ rankings if they are to attract investment and enhance opportunities for economic growth.”