Drones, Data, and Deductions: Greece’s Digital Tax Revolution and Its Global Implications

For decades, Greece has been infamous for chronic tax evasion. From cash-based transactions to local tavernas to undeclared vacation villas along the Aegean coast, under-the-table economic activity has undermined state revenue and fueled mistrust in government institutions. The consequences were particularly acute during the Eurozone debt crisis, when international creditors repeatedly pressed Athens to improve tax collection as a condition for financial support. Now, in an unexpected turn, Greece is emerging as a pioneer of technology-driven enforcement. In 2025, the government launched a “tax revolution,” deploying artificial intelligence, big data analytics, satellite imagery, and even drones to uncover hidden income and property. The initiative raises critical questions about how far governments can and should go in modernizing tax law enforcement, and whether such tools could become a global model.

Greece’s reforms aim to tackle long-standing weaknesses in its fiscal system. The Independent Authority for Public Revenue now cross-checks income declarations with third-party data, using algorithms to identify discrepancies. Satellite imagery detects unregistered farmland or construction, while drones survey luxury properties along the coastline to verify whether owners accurately reported taxable attributes. These methods directly address European Union (EU) concerns under Article 113 of the Treaty on the Functioning of the European Union, which requires member states to harmonize indirect taxation to support the internal market. Additionally, directives on administrative cooperation necessitate stronger compliance frameworks. Greece’s technological leap signals not only a domestic strategy but also an effort to align with EU fiscal governance standards.

The commercial implications are significant. Effective tax enforcement reduces distortions in the business environment by ensuring that compliant firms are not disadvantaged compared to competitors who evade their obligations. It also improves Greece’s fiscal credibility, which in turn bolsters investor confidence and access to European financial markets. More broadly, the move reflects an international trend: as cross-border commerce becomes increasingly digitalized, governments are seeking innovative mechanisms to protect their tax bases. The Organization for Economic Cooperation and Development (OECD) has spearheaded global initiatives to address these challenges, particularly through the Base Erosion and Profit Shifting (BEPS) project and its blueprint for taxing the digital economy. Greece’s experiment demonstrates one concrete way in which a state can harness technology to close the gap between law on the books and enforcement in practice.

Still, the reforms present legal and ethical challenges. Using drones and AI to monitor private property raises privacy concerns, particularly under the EU’s General Data Protection Regulation. Errors in data analysis could unfairly penalize taxpayers, raising issues of due process and access to remedies. Moreover, a balance must be struck between efficiency and proportionality. While aggressive enforcement may increase revenue, it risks undermining public trust if perceived as overreaching or intrusive. These tensions highlight the need for safeguards that ensure technological enforcement remains transparent, accountable, and consistent with fundamental rights.

Greece’s digital tax revolution is a remarkable reversal of narrative. Once castigated as Europe’s tax laggard, it now positions itself as a laboratory for twenty-first-century enforcement. Whether other states follow suit will depend on the legal frameworks they adopt and the trust their citizens have.

Article Written by Marina Blasi

Sources:

Derek Gatopoulos, High-tech tax auth. helps Greece return to Eur.’s fin. mainstream, AP NEWS (Sept. 22, 2025), available at https://apnews.com/article/greece-tax-ai-technology-b0c6c32dae42964142d8ef9aa7f0e9c6 (last visited Sept. 29, 2025).

Derek Gatopoulos, Greece’s tax revolution harnesses big data and drones to shake off a legacy of crisis, ABC NEWS (Sept. 22, 2025), available at https://abcnews.go.com/International/wireStory/greeces-tax-revolution-harnesses-big-data-drones-shake-125806941 (last visited Sept. 29, 2025).

Consolidated Version of the Treaty on the Functioning of the European Union art. 113, Oct. 26, 2012, 2012 O.J. (C 326) 47.

Tax Challenges Arising from Digitalisation – Rep. on Pillar One Blueprint, OECD (Oct. 14, 2020), available at https://www.oecd.org/en/publications/2020/10/tax-challenges-arising-from-digitalisation-report-on-pillar-one-blueprint_6034ca99.html (last visited Sept. 29, 2025).