The critical issue of taxation of Greeks abroad has been brought to the forefront again after SAE: Council of Hellenes Abroad secretary Dr Olga Sarantopoulos wrote to Greece’s Minister of Finance Yiannis Stournanas, highlighting problems faced by the diaspora on this issue. The letter comes in response the new law (3943/2011) passed by the Greek parliament last year, entangling the diaspora in the cogs of the infamous Greek bureaucracy, which rates amongst the lowest in the world.
The controversial law compels all Greeks abroad who spent more than six months in Greece to declare their “global income” – that is, their income in Greece and their countries of permanent residence – to avoid being double taxed. A similar intervention was made to the Minister of Finance on 14 December 2012 which remains unanswered.
Dr Sarantopoulos proposes the immediate establishment of a committee including representatives of the diaspora, tax consultants, tax collectors with knowledge of the subject (DOY residents), and representatives of the Ministry of Finance and the GSGA.
She also refers to specific provisions that create additional tax burdens on Greeks of the diaspora and deter investment opportunities. Specifically, Greeks abroad are invited to submit new documents (“Tax Residence Certificate”) which, in many cases, are not issued by the competent authorities of their countries of residence. In the case of non-adoption, double taxation will be imposed, as they will not be recognised as foreign residents.
Dr. Sarantopoulos notes that the diaspora remains consistent in its tax obligations, but considers it unfair for the Greek state to issue additional tax regulations, asking the political leadership to review the issues she raised. In the letter, she stresses that Greece has a duty to embrace the diaspora by designing a national strategy that will be to our mutual benefit.
She is currently awaiting a response from Mr Stournanas.