Greece has “created” a series of tax disincentives that discourage the smooth operation of tourism enterprises and the launch of investments in the sector, according to the results of a study announced by the SETE Institute (InSETE) on Thursday.
The study, which ranked the fiscal framework of tourism enterprises in Greece and other countries, was conducted by TMS Certified Public Accountants S.A. on account for InSETE.
According to the study, Greece’s competitiveness is held back when it comes to investment and operating taxes and the country ranks lower than its key competitors. Cyprus, which offers its enterprises a favorable fiscal environment (low taxation on profits and non-taxation of dividends), ranks first in terms of competitiveness and is followed by Croatia, Turkey, Spain and Italy.
InSETE underlined that Greece lacks an attractive fiscal framework due to the high taxation on profits of companies, the vast bureaucracy Greek enterprises face, the abolition of VAT exemptions on the islands and the eight changes made to the value-added tax (VAT) rate imposed on hotels since 2008.
According to InSETE, tourism businesses are affected mostly by the latter.
“The Greek government should take the necessary steps in 2017 to return the VAT to competitive levels, otherwise, the reality will be very difficult for legitimate businessmen that are struggling in very difficult conditions”, InSETE concluded.
The read the whole study (in Greek), press here.