BUSINESS

Other states are inviting rich Greeks

ILIAS BELLOS

TAGS: Economy

Ever more European states are trying to attract rich Greeks and other European Union nationals suffering from overtaxation at home.

Cyprus, Malta, Ireland, Luxembourg, Monaco, Portugal and the Netherlands, as well as bigger countries such as France, Spain and Italy, are offering generous incentives to bring on to their registers people with high incomes that would benefit their economies in a number of ways.

The relocation “invitation” concerns Greek entrepreneurs as well, given the excessive taxation the government has imposed on them and the uncertainty regarding the future tax situation that high incomes will face.

The concept behind the tax policies adopted in other countries so as to attract wealthy citizens is focused on a steady annual lump sum tax and their exemption from any other burdens, except for those concerning their activities at their new tax home.

Italy’s case is interesting, as it is a country in the hard core of the EU that has created a favorable framework: It allows rich individuals with large international incomes to become “non-doms” (ie paying tax without being residents) by paying an annual levy of 100,000 euros plus 25,000 euros for each family member. They are relieved of any other tax on incomes abroad or imported into Italy and only pay regular tax on activities within the country. This boosts revenues, the property market and consumption.

Online