How does tax evasion in Germany compare with welfare fraud?
Most tax evasion is never uncovered – the tax investigators found about €2.6 billion in 2024. The German tax union DSTG estimates the total loss at more than €100 billion a year; estimates range from a two-digit billion amount (Federal Court of Auditors) to €200 billion. Misuse of citizen's income caused the job centres a damage of about €260 million in 2023, according to the Federal Employment Agency; it also points to unreported cases and only counts the 300 joint job centres. Even at the lowest estimate, tax evasion costs the state far more than welfare fraud.
Data as of: Welfare fraud: 2023 · tax evasion: estimate from 2026
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