BUSINESS

Tax residence moved abroad to ease burden

PROKOPIS HATZINIKOLAOU, YIANNIS PAPADOYIANNIS

TAGS: Taxation, Finance

Applications to the Tax Authority for Residents Abroad to transfer tax residence to another country have beaten all previous records, as thousands of Greeks seek refuge from the heavy taxes and the excessive social security obligations imposed by the government.

Entrepreneurs are increasingly looking to become tax residents in another country, moving their business abroad and declaring reduced incomes in Greece, at a small cost. Their top destinations are Cyprus, Malta, Luxembourg and Ireland.

Specialized consultancy companies, meanwhile, say that they are booking hundreds of appointments every week to supply solutions for the optimal management of individual’s assets and tax obligations, with business being particularly brisk in freelance workers who have relatively high incomes.

Besides moving one’s tax residence abroad, other methods being used include corporate ventures to which assets are transferred, bogus divorces for tax purposes, indirect salary payments, the creation of private capital companies, transfer of part of business activities to third countries and reduction to the bare minimum of official transactions.

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