[docdeek]

If I understand it, the point is to avoid cash transactions that cannot be taxed. One article I read pointed out that the 30% would include rent or mortgage payments, utility bills, and such things.

Personally, I would find it easy to hit almost 100% of the transactions I make electronically - I use cash rarely now (living in France, no cash tips etc.).

I think I would struggle to only spend 25% of my income, though. Even if I am saving a lot, once I pay rent, family groceries, utilities, phone and internet, I’d be past that. If you don’t mind to share, how do you manage to spend so little of your income? There’s always room for me to save more, and I’d love a couple of tips.

[PeterStuer]

There is a global 'war on cash' by the finance lobby because they can easily insert fees on every electronic transaction, while at the same time hyper-virtualise their operations.

Lose all those branch offices and ATM's that need to be maintained and supplied. Just have a computer, a banking app and some AI bots and you can do it all with near zero cost and rentseek the hell on every single transaction for the 99%.

Tell the public sector it is all in the name of combating 'tax-evasion', you know, the evasions you make possible by lobbying for very convoluted taxation regimes with many always changing backdoors you are advising your 1% clientele on.

[rimliu]

Do you really think maintaining infrastructure for electronic payments and internet banking is "near-zero cost"?

[PeterStuer]

Compared to traditional banking real-estate, employees, physical operations and security ... yes.

[rimliu]

"Near-zero“, really?

[taneq]

I'm guessing single person willing to live frugally, working in high paid tech job. That, or using different definitions and not literally saving 75% of take-home pay.

[andmarios]

Allow me to explain better.

The 30% comes before any tax. Also it does not include payments for taxes, rent and other things.

So, let's say I make €40K/year. My tax will be about €11K. Further taxes, such as owning some property, owning a car, can add €1-3K more. My rent may be €7K.

So now, I have already spent ~€20K but this does not count towards this limit. I still have to spent €12K on various things (food, services, goods, which come with 24% VAT in Greece) or I get an additional 22% tax.

It's madness!

[docdeek]

The article explicitly includes rent: "Greeks can use debit cards, credit cards, bank transfers and ecommerce for the electronic transactions, which includes rent."

[mnw21cam]

The article says that payments for rent do count towards the limit. Can you re-confirm?

[andmarios]

I can. Rent does not count towards spending but it counts towards... earning.

So, if you own a house and rent it to others, the rent is part of your income. If you rent a house to leave in, the rent is not part of your spent amount.

There is a special clause, that if you spent more than 60% towards tax, rent and loan payments, then you only have to spent 20% of your income on services, goods, etc.

[esotericn]

It's trivial. You just need to earn 4 times your minimum spend and then do it. ;)

[vinni2]

He is probably well paid. I agree it’s hard to keep the expenses below 25% of income.