Greece’s government on Thursday denied it had instituted a retroactive tax on foreign holders of Greek bonds, saying capital gains booked from early 2012 to the end of last year were subject to the tax regime covering that period.
Greek 10-year bond yields rose to near two-month highs on Thursday, with traders citing a document detailing a retroactive tax on non-resident holders of Greek bonds.
Greek officials, however, said that document had only sought to clarify that the previous tax regime of 33 percent on foreign legal entities and 20 percent on individuals had been abolished starting this year.
“There is no taxation on capital gains from transfers of Greek government bonds by foreign investors that took place from January 1, 2014 onwards,” a statement from the finance ministry said. “Consequently, the reports referring to retroactive taxation or intention for retroactive taxation are completely untrue.”