The Independent Authority for Public Revenue (AADE) has released new data showing a mixed picture in tax debt trends over the summer months. Between June and August 2025, while new debts to the state increased sharply, there was also a notable improvement in the collection of older debts.

Key Figures

• Total overdue tax debt (August 2025): €111.62 billion
  • Of this, €27.17 billion is deemed uncollectible, leaving €84.46 billion as effectively outstanding.
• Unpaid taxes (January–August 2025): €5.7 billion (new overdue debts)
• Increase in unpaid taxes (August vs. July): €1.37 billion
• New total overdue debts (including non-tax liabilities): €6.135 billion (vs. €4.667 billion in July)

The number of taxpayers with debts also fluctuated:

• June: 3,916,603 (−3.6% year-on-year)
• July: 4,001,794 (+4.5%)
• August: 3,973,220 (−1.02%)

This volatility partly stems from a single erroneous VAT declaration worth €0.5 billion, which inflated July’s figures before being corrected in August.

Enforcement and Collections

• 1,617,052 taxpayers are already subject to enforcement measures (such as asset seizures).
• Another 2,262,821 taxpayers are in line for such measures, having exceeded the €500 debt threshold.
• Collections from overdue debts (Jan–Aug 2025): €4.289 billion, up 7.35% from €3.995 billion in 2024.

Month-by-Month Debt Changes

• June: €110.82 billion
• July: €111.82 billion
• August: €111.62 billion

Despite slightly better recovery rates, new debt is accumulating faster than collections can offset it.

Surge in New Overdue Debt

New overdue debts (tax and non-tax) rose sharply over the summer:

• June: €415 million (−20.8% YoY)
• July: €513 million (+43.7%)
• August: €1.468 billion (+145.5%)

For the first eight months of 2025, total new overdue debt hit €6.135 billion, up 24.8% from €4.916 billion in 2024.

Excluding non-tax categories, new tax-related debts reached €5.704 billion, marking a 34.4% increase year-on-year.

Main Drivers of Debt Growth (August 2025)

• Income tax: up 844.7%, reaching €300 million
• VAT: up 216.5%, reaching €889 million

Despite the government’s efforts to boost tax collection and streamline procedures, the steady rise in new tax debt underscores the continued financial strain on taxpayers and the persistent challenges of revenue enforcement.