Behind the €2.00 packs and shadowy warehouses lies a parallel criminal universe, one that is steadily corroding the national economy and security. The annual loss in state revenues from tobacco smuggling exceeds €600 million, according to the yearly issued KPMG study, with society bearing the broader cost.
Operating quietly, stealthily, and with increasing sophistication, the illegal tobacco trade in Greece has evolved into a fully-fledged criminal industry. It supplies the domestic market with counterfeit cigarettes of the worst quality, and are also exported to other countries. Inspections routinely uncover counterfeit production sites, storage facilities hidden in remote farms, and containers loaded with undeclared tobacco.
Behind every untaxed cigarette pack, a shadow economy lurks—one that deprives the state of vital income, endangers public health, and funds transnational crime networks stretching from the Western Balkans to the Middle East.
Shifting from imports to domestic production
In 2023, Greek authorities seized over 360 million illicit cigarettes and 300 tons of loose tobacco, according to data from the Independent Authority for Public Revenue (AADE). The resulting fiscal loss, solely from evaded taxes and duties, surpasses €600 million annually. Notably, this is no longer merely a matter of imports from third countries. Increasingly, the counterfeit products are being manufactured domestically.
A case in point is the January 2024 raid in Achaia, where authorities dismantled a fully operational illicit factory. Equipped with automated production lines, fake tax stamps, and 25 tons of tobacco, the facility operated in a rented building posing as a legitimate business. Orders were placed through messaging apps and phone communication, with deliveries carried out by courier services to a carefully curated customer base.
Public health & market distortion
Health experts have long warned about the unknown contents of illicit cigarettes, which often include toxic residues, heavy metals, mold, and substandard filters. At the same time, the flood of contraband on the market undercuts legal retailers, threatens jobs across the legal tobacco supply chain, and distorts fair market competition.
“This is not about individual street vendors or black-market hotspots,” says Giorgos Stefanou, President of the Association of Tobacco Product Traders. “We are talking about highly organized criminal structures with international links, often involved in money laundering and human trafficking. Every €2.00 pack represents a loss for the state—and a win for the underworld.”
Modern distribution networks mimic e-commerce
The distribution networks have adapted to the digital era. Delivery drivers operate like small fleets; orders are placed via WhatsApp and Viber; and drop-offs occur at neighborhood hangouts or even directly to consumers’ doors. Neighborhoods from Patissia to Petralona, and from Polichni to Menidi, have become grey zones where illicit trade thrives.
A senior officer in the Hellenic Police, who participated in recent operations, noted: “They change locations weekly, use unregistered vehicles, fake social media accounts, and run a distribution system that mimics a professional logistics company.”
Policy response and strategic recommendations
Since 2019, the Ministry of Finance has implemented the EU’s Track & Trace system in Greece, designed to digitally trace every pack of cigarettes across the supply chain.
Charis Theocharis, Secretary General for Public Revenue, emphasized: “Tackling illicit trade requires a comprehensive approach: human resources, modernized customs infrastructure, strategic cooperation with European authorities, and continuous information sharing. Half-measures simply won’t suffice.”
Experts and institutions such as SEV, IOBE, and international anti-smuggling organizations have proposed a targeted national strategy:
- Reinforce border customs and reassess import logistics.
- Intensify inspections in urban centers with municipal support.
- Launch public awareness campaigns highlighting the health and legal risks.
- Reform tax policies to discourage black market activity while encouraging legal consumption.
- Support innovation by offering incentives for legal businesses to invest in and promote less harmful products, such as heated tobacco, nicotine pouches, and e-cigarettes.
Tobacco smuggling is no longer a marginal issue. It poses a systemic threat to fiscal fairness, public health, and national security. As long as it is treated as petty trade, it will continue to flourish—organized, profitable, and dangerous.
Major tobacco smuggling cases in Greece: A timeline
Behind every cheap pack of cigarettes lies a network of sophisticated crime. In recent years, Greek authorities have dismantled dozens of smuggling rings, seizing tons of raw tobacco, industrial machinery, and millions of counterfeit cigarettes. The following timeline highlights some of the most significant operations:
- December 2017 – Aspropyrgos: A clandestine factory is discovered in a warehouse. Authorities seize 22 tons of tobacco and packaging machines. The ring had ties to Eastern Europe.
- May 2018 – Koropi: Dismantling of a domestic production unit. Police confiscate 30 million cigarettes and 6 tons of raw tobacco.
- October 2018 – Koropi: Another production unit is dismantled. Authorities seize a large quantity of readymade cigarette packs, packaging materials, and 23 tons of raw tobacco.
- May 2019 – Koropi: A domestic production site operating unnoticed for months is shut down. Seizure of 10 tons of tobacco and 3.6 million cigarettes.
- June 2019 – Thessaloniki: Thessaloniki customs seize 12.5 million cigarettes.
- August 2019 – Kastro & Elefsina: Dismantling of a large-scale domestic production unit and several warehouses. Authorities seize 128 tons (including about 1 ton of processed and raw tobacco) and thousands of cigarette packs in various languages.
- May 2020 – Lavrio: Two factories/warehouses near Athens are raided. Two illegal cigarette production lines are uncovered, with more than 20 tons of processed tobacco seized.
- May 2020 – Markopoulo: A factory is found and dismantled. Confiscation includes a large number of machines, vehicles, raw materials, and 25 tons of tobacco.
- August 2020 – Kavala Port: Authorities discover 17 million illicit cigarettes in a container labeled “kitchenware,” originating from the UAE and routed through Bulgaria.
- October 2020 – Attica & Korinthos: A tobacco processing factory is uncovered in Korinthos, and a cigarette manufacturing/packaging facility in Acharnae, Attica. Two full production lines, 6 million cigarettes, and 33 tons of processed tobacco are seized.
- December 2020 – Various locations in Attica: A massive operation uncovers several illegal premises. Authorities seize 4.5 million packs of cigarettes and 120 tons of tobacco.
- March 2021 – Agrinio: Dismantling of an illegal factory producing and packaging branded cigarettes. Seizure of 11 tons of processed tobacco and 7.8 million cigarettes.
- June 2021 – Aigaleo: Police uncover a high-capacity production facility. Confiscated items include 13 tons of tobacco, thousands of branded packs, and fake tax bands.
- October 2021 – Avlida: Dismantling of an illegal factory. Authorities seize 14 tons of processed tobacco and 120,000 cigarette packs.
- July 2022 – Koropi: Another illegal factory is dismantled. Seizure of 13 tons of processed tobacco, 1 million counterfeit cigarettes, and various raw materials.
- July 2022 – Thessaloniki, Thiva, Megara: Seven warehouses are raided. Authorities seize 900,000 packs of cigarettes and 7,000 tons of processed tobacco.
- November 2022 – Larissa / Athens: Multi-site operation led by the Financial Police. Seizures include 6 tons of tobacco, 1.2 million cigarettes, and trucks with falsified documents.
- March 2023 – Kalochori: A large warehouse is raided, with 20 tons of tobacco confiscated.
- January 2024 – Achaia: One of Greece’s most advanced counterfeit factories is dismantled. Two full production lines, 25 tons of tobacco, a digital ordering system via Viber, and a delivery network covering Athens, Patras, and Thessaloniki are uncovered.
- April 2025: A major new operation strikes at the heart of criminal organizations operating in Greece. A significant police success.