Last Update: 11:15
Tax borders are about to become less easy to slip through for Greeks who become residents of countries with lower tax rates than Greece in order to save themselves some money.
According to sources, the Finance Ministry has proposed a legislation which would label businesses and professionals who have opened offices in neighboring countries despite not having any activities or employees there as illegal practices. The ministry is now focusing on drawing up a regulation to help monitor such activities to be able to single out those who are not paying Greek taxes but are still doing all of their business in Greece, Finance Minister Euclid Tsakalotos says.
Some of the latest data shows that Greeks are claiming residency and their businesses in nearby countries such as Cyprus and Bulgaria where tax rates are only around 10 percent, compared to Greece’s 29 percent, in addition to having to pay high social security costs to the Greek state.