Generally
speaking, Greece is not an attractive location
for individuals or companies seeking to
limit taxation; the mainstream corporate
income tax rate used to be 35%, although
it was reduced in stages to 32% in 2005,
29% in 2006 and 25% in 2007. The
government plans a further 5% cut over five
years, starting with a 1% decrease in the
rate in 2009. There are however some
particular features of the Greek tax system
which are attractive for certain individuals
or companies in certain situations.
A
new, general-purpose development incentive
law was promoted by the government in 2005
and was received very warmly by the business
community. In the first ten months of its
implementation (end of March 2005 till the
end of January 2006) 1,234 applications
were submitted accounting for EUR2.47bn.
The
law offers a combination of incentives and
corporate tax breaks and is aimed at sectors
of the economy that are open to international
competition, such as tourism, information
technology, financial services, and quality
agricultural exports.
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