Almost everything by Garak is just pure gold, this exchange between Garak and Bashir is one of my favourites.
Garak: “Why is it no-one ever believes me, even when I’m telling the truth?”
Julian: “Have you ever heard the story of the boy who cried wolf?”
Garak: “No!”
Julian: “It’s a children’s story. A young shepard gets loney while tending his flock. He cries ‘Wolf!’ and the townspeople come rushing to his aid. When they discover there is no wolf, he claims he scared the wolf off, and they congratulate him for his bravery.”
Garak: “What a clever boy!”
Julian: “There’s more. The boy did the same thing the next day, and the day after, and the day after. And on the next day, when a wolf really did come, the townspeople didn’t come. They’d gotten tired of his lying. The wolf ate all the sheep and the little boy.”
Garak: “Isn’t that a bit gruesome for a children’s story?”
Julian: “The moral is that if you lie all the time, people won’t believe you even if you’re telling the truth.”
Garak: “Are you sure that’s the moral?”
Julian: “Of course. What else could it be?”
Garak, leaving: “Never tell the same lie twice.”
Another exchange with Bashir
Bashir: So of the stories you told me, which ones were true?
Garak: My dear doctor, all of them were true.
Bashir: What about the lies?
Garak: Especially the lies.
Yet another one
Bashir: Assuming you’re not a spy.
Garak: Assuming.
Bashir: Then maybe you’re an outcast.
Garak: Or maybe I’m an outcast spy.
Bashir: How could you be both?
Garak: I never said I was either.
Now Odo and Garak
Odo: You’d shoot a man in the back?
Garak: It’s the safest way, isn’t it?
And one quote I particulary love (I try to use it whenever possible):
Garak: The truth is usually just an excuse for a lack of imagination.