Tax evasion is widely considered one of the most persistent and difficult problems, not only in Greece but across the world. Given the constant need to increase public revenues to fund state spending, it has evolved into a chronic issue.

Each year, when the Independent Authority for Public Revenue (AADE) releases its data—often revealing astonishing “performances” by certain professional sectors such as car repair shops, hair salons, and technical companies—few are surprised.

Although the phenomenon has been somewhat reduced compared to previous decades, and new technologies such as Artificial Intelligence promise further progress, tax evasion clearly has both a future—and a long past.

In fact, it can be considered an ancient “sport.” While modern Greeks share little with their ancient ancestors beyond language, the tendency to avoid paying taxes appears to be one enduring trait—making tax evasion not only a timeless issue but, arguably, a systemic one.

This was not unique to Greece. It was also widespread in Ancient Rome and other empires, and remains a global challenge today. However, despite the vast differences between modern and ancient times, notable similarities persist.

The wealthy bore the burden

Public revenue has always been the driving force of organized societies. In ancient city-states, taxation systems—each with their own characteristics—relied on regular and extraordinary taxes, as well as public contributions.

According to a somewhat idealized historical narrative, in Athenian Democracy taxation fell primarily on those who could afford it—the wealthy citizens—who often contributed willingly, even beyond their obligations. In this sense, a key principle was the moral duty of the affluent toward society.

Reality, however, was more complex. Even then, not all elites were virtuous, and economic crises existed. History records many instances of both heavy taxation and tax evasion.

During the classical period (5th–4th century BC), direct taxes were not imposed on Athenian citizens, as this was considered degrading. Instead, such taxes targeted non-citizens. Two notable examples were the metoikion (paid by resident foreigners) and the xenikon (paid by visiting foreigners).

Many of these individuals were merchants—a profession not particularly esteemed at the time. Nevertheless, revenues from these taxes were significant, and even early forms of professional taxation existed.

Hidden taxes and public obligations

In practice, Athenians did contribute through indirect means. These included extraordinary levies (such as war taxes) and liturgies—public obligations imposed on wealthy citizens to fund state needs.

The most important of these was the trierarchy, which required funding the maintenance of a warship. Other obligations included sponsoring cultural events, athletic competitions, and religious festivals such as the Panathenaia and the Dionysia.

Indirect taxes, including customs duties—especially those collected at the port of Piraeus—were also a major source of revenue.

The “antidosis” system

To prevent avoidance of these obligations, the Athenians developed the system of antidosis (exchange). A citizen assigned a public duty could challenge another, wealthier individual to take it on. If the second person refused, they were required to exchange properties, ensuring fairness and transparency.

This process involved sworn declarations and full disclosure of assets—effectively an early form of tax declaration. Despite this, attempts to evade obligations remained common.

How wealth was hidden

According to historian Matthew R. Christ, taxation has rarely been popular and often provokes resistance. In democratic Athens, where the burden fell on a small but powerful elite, various methods were used to conceal wealth.

Cash was often buried—much like today’s “under the mattress”—or deposited in early banking institutions. Wealthy Athenians could also liquidate assets or hide land ownership, especially since no formal land registry existed.

One method involved mortgaging property using stone markers (horoi), making it appear less valuable and reducing tax obligations. Others used loans secured against land to obscure ownership.

Tax collectors and harsh enforcement

Private tax collectors, contracted by the state through auctions, were responsible for collecting indirect taxes. They paid upfront for the right to collect and then profited from the process—often using aggressive methods. In a way, they resembled modern debt servicers.

Penalties for unpaid taxes were severe. Debtors could lose political rights, face property confiscation, and even imprisonment.

During prosperous times, competition among tax collectors was intense. In leaner periods, the state often had to step in directly.

Crisis and reform

Economic crises also occurred in ancient times, often prompting tax reforms. One major reform in 378–377 BC introduced property registration and stricter penalties for evasion, aiming to broaden the tax base.

A controversial figure, Androtion, proposed measures to increase revenues, including melting sacred gold, imposing new taxes, or combating tax evasion. The latter was chosen, and he was appointed special tax collector.

His campaign, however, became infamous for its brutality—home invasions, intimidation, and torture. Ultimately, it failed, and Androtion himself was accused of embezzlement.

The role of banks

Banking in ancient Athens developed as early as the 6th century BC. Bankers replaced money changers and played a dual role: facilitating economic activity while also helping the wealthy conceal assets.

They accepted deposits, issued loans, and managed assets. During the Golden Age of Pericles, lending with interest became common. Long-term deposits could yield interest rates of up to 10%, while loan rates started at around 12%.