Tax res­i­dence moved abroad to ease bur­den

Kathimerini English - - Focus - BY PROKOPIS HATZINIKOLAOU & YIAN­NIS PAPADOYIANNIS

Ap­pli­ca­tions tothe 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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