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Tourists in Greece leave €100million in tips? Where’s the tax office?

I read this news today that Tourists visiting Greece leave some 100 million euro in tips. The data was allegedly based on a survey on tips carried out by the travel website Tripadvisor. aim of the survey was to find out the tipping habits of several nationalities when on vacation in foreign countries.

I suppose I got to see only the press release on the survey results as issued by the Tripadvisor and therefore I have no insight on the many little details especially those concerning Greece.

Tourists leave some 100 million euros in tips

Foreign visitors leave some 100 million euros in tips every year to employees working in Greek hotels, restaurants and other services in the tourism sector, according to a new survey carried out by the travel website Tripadvisor, which found Americans more inclined to tip workers, even when service was below par.

More than half of all foreign visitors tip on their holidays to Greece, leaving an average of 10 euros each, according to the survey, which questioned a sample of 25,000 tourists. Sixty percent of Americans questioned said they left tips during their vacation, followed by 49 percent of Germans, 33 percent of Brazilians, 30 percent of Spaniards, 28 percent of Russians and 26 percent of Britons. The French and Italians were less generous with 15 percent of the former saying they left tips and 11 percent of the latter. (full article ekathimerini)

Tourism Minister Olga Kefalogianni has predicted that 24 million foreigners will visit Greece this year. IF only half of them would leave an average of €10 in tips that would mean €120million in black economy. However as many foreigners and foreign students work in the tourism sector how could this money be taxed?

I suppose I got to see only the press release on the survey results as issued by the Tripadvisor and therefore I have no insight on the many little details especially those concerning Greece.

I must add here that I have no idea whether tips in bars and restaurants and hotels are being taxed – let’s say – with a flat rate. Also whether taxi drivers, porters, sailors, etc tax their tips. Therefore I would appreciate your feedback.

PS As I wonder how the tax-greedy Greek finance Ministry managed to let these tips slide through the tax fingers, I would advise that the Greek FinMin  taxes the tips “on the basis”: that it upon arrival in the country every tourist will pay €2 as a tax-evasion fee 😛

 

 

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