Thousands of Greeks have opened or registered their companies in Bulgaria, Cyprus, Malta or in other neighboring countries with low tax rates in recent years in order to escape the over taxation in Greece. Now the General Secretariat of Public Revenues targets exactly these companies and threaten the owners with heavy taxes.
The GSPR has reportedly identified 13,000 of such businesses and has started cross checks to find out whether they violate the local laws in paying taxes.
According to media reports, if a company is registered in a foreign country but its management and its operation are in Greece, then the company must pay taxes here and thus according to the rates of the local tax system.
If the companies are registered abroad, the management is settled in Greece but the productive operation is also abroad, then the low tax rates should be paid in the foreign country.
The Greek state plans to ask additional and retroactive taxes from the companies of the first category and thus from the very first economic year of their operation.
I do not know, if the issue is as simple as it is reported, by my crystal ball warns that soon not only Greek companies will keep leaving the country but also Greek citizens who will request Bulgarian, Cypriot, Maltese or Albanian citizenship.
PS Keep up the good work, guys, kick everyone out of the country!