Today, Tuesday, in the Plenary, the discussion and passing of the draft law of the Ministry of National Economy and Finance for the “Incorporation of Directive (EU) 2022/2523 of the Council, of December 15, 2022, regarding the guarantee of a global minimum level of group taxation, restarts of multinational enterprises and large-scale domestic groups in the European Union (Pillar II) and other customs and tax provisions’. The debate was suspended on March 26 after the No-Confidence motion filed by SYRIZA, PASOK-KINAL, New Left and Pleussi Eleftherias.

What is planned for the Golden Visa?

In the bill, the ministerial amendment for the conditions for granting the Golden Visa has been submitted with the aim of increasing the supply of housing for long-term leases and addressing the impact on housing costs, while maintaining the incentives for the introduction of investment funds into the country and the development of the real estate market . According to the provisions of the amendment for the granting of a 5-year residence permit to citizens of third countries (Golden Visa), the following conditions are established: In the Region of Attica, the Regional Units of Thessaloniki, Mykonos and Santorini and in the islands with a population of more than 3,100 inhabitants, the value of the real estate that the interested party must own increases to 800,000 euros. In the rest of the country, the value of real estate is 400,000 euros. In any case, the investment must be made in one property (not in several properties of lesser value) with an area of ​​at least 120 sq.m. It is allowed to purchase a percentage of a property in undivided co-ownership, the minimum value of which is respectively 800,000 and 400,000 euros. For buildings that have a different use and are converted into residences, the minimum amount of investment is 250,000 euros. The conversion of use must be completed before submitting the request for the residence permit. The limit is also set at 250,000 euros if it is an investment in a listed building that is to be restored. Residence permits can be renewed for the same period of time (five years) as long as the real estate remains in the ownership of the investor. If it is an investment in a preserved building, an additional condition for renewing the residence permit is that the restoration of the building has been completed. If the investor sells the property then his residence permit is revoked and the buyer becomes entitled to obtain a residence permit. Investors can rent out the buildings they acquire, but they are not allowed to be made available through short-term leases, while in cases of conversion to a residence, their use as a company headquarters or branch is also prohibited. In case of violation, the residence permit is revoked and a fine of 50,000 euros is imposed. In addition to the purchase of real estate, citizens of third countries also obtain a residence permit by concluding a long-term complex tourist accommodation contract or a tourist accommodation timeshare contract, corresponding to the value per region (800,000 euros in Attica, etc., 400,000 euros in the rest of the country, etc. .). Transitional periods of application with conditions have been provided for in the amendment. Also, with other provisions of the amendment it is foreseen: the permanence of the exemption from the Pretense Fee for regular status farmers and fishermen with boats up to 12 meters. The payment of income tax for the incomes of 2023, to be paid this year, in 8 monthly installments. The exemption from the 2024 ENFIA of property owners in the areas of Crete affected by the earthquakes of July 24 and September 27, 2021.

The positions of the parties

The bill has been introduced by the Economic Affairs Committee in the Plenary after it was voted against the Authority by ND, SYRIZA, PASOK-KINAL and New Left. The KKE voted against it, while Hellenic Solution, Spartans, Niki and Pleussi Eleftherias reserved their place in the Plenary.

Until the adjournment of the Plenary session on March 26, when the three-day discussion of the Motion of No Confidence started by the four Opposition parties, the two rapporteurs (ND) and three special buyers (PASOK-KINAL, KKE and Hellenic Solution) had been appointed )

The ND rapporteur, Athanasios Kavvathas, requested the approval of the bill, stressing that this is aimed at tax justice as it creates the institutional framework for the imposition of a minimum level of taxation for large multinational and domestic groups. with large turnover that may operate everywhere but direct their profits to so-called tax havens and enjoy zero or low taxation. He noted that according to calculations in 2019, the profits of multinational groups in tax havens were close to one trillion dollars, with this trend recorded as increasing. And to deal with these practices we need a single and above all effective framework to be implemented by all OECD member countries.. The European Union together with Switzerland and Norway, the United Kingdom and many Commonwealth countries have already made significant progress in integration process of the Directive. Among other things, the ND rapporteur emphasized that with the adoption of the Directive, there is no change in the 22% tax rate for businesses in Greece. The additional tax of 15% will only be imposed if the tax contribution of these groups falls below 15%.

The rapporteur of SYRIZA, Christos Giannoulis, referring to the Golden Visa amendment, characterized it as an “amendment of shame” arguing that it provides that “reductions in revenue, which come from Airbnb or from various arrangements, depend on facts, and will it is replaced by other sources of revenue of the state budget” He said “it is a monument of cost accounting and a wasteful budget! It’s a dirty financial practice.” The SYRIZA member of parliament pointed out that the Government legislates through amendments, saying that “you are bringing for discussion and voting a bill which in essence wants to legislate with amendments”. This said you have now become an “addiction” and you need “special training, external support to quit”.

The Minister of National Economy and Finance Kostis Hatzidakis, with his intervention responded to the remark of the minority rapporteur regarding the coverage of losses from the provisions of the amendment. saying that the Report of the General Accountant of the State refers to some small possible revenue losses that will come from the exemption of the obligation to pay the Business Tax by farmers and coastal fisheries. From the exemption of the ENFIA to the earthquake victims of Arkalochori as well as the possible reduction of income from the new provisions for the golden visa, stressing that “permanently and on the recommendation of the Greek State, the General Accounting Office of the State – and during SYRIZA this said – that “the above revenue reduction, the amount of which depends on facts, will be compensated by other sources of revenue of the state budget”. And he wondered “does that surprise you? Is that what impresses you? What kind of opposition is Kasselakis’ SYRIZA? Lower and lower. The only positive thing is that you offer a little laugh to the Greek citizens with all these unprecedented and untold things that we keep hearing from SYRIZA”.

The special buyer of PASOK-KINAL Paris Koukoulopoulos, on the bill, said that a more general agreement was recorded in the Committee. He stated that their party on the Authority will vote for it “not simply because it concerns an integration of a European Directive that has an increased degree of obligation but also because even to a small extent there will be benefits and revenues, on a healthy basis”. He emphasized that on the way to 2032, which is a year for the way of debt servicing, our country should take care to secure revenues on a healthy basis and healthy revenues are mainly the fight against smuggling, especially in fuel, but also in other sectors. It is necessary, he said, “the rapid integration and practical application of all the corresponding European Directives”. He focused, at the same time, on the provisional data of ELSTAT for 2023, saying that “a serious negative development is recorded in the forecasts of the Budget” confirming the forecasts made by PASOK-KINAL.

Regarding the amendment regarding the Golden Visa, he pointed out that “it has clearly been a PASOK initiative for a long time” stating that “we are constantly submitting proposals. We have never been limited to a sterile Opposition”.

The special buyer of the KKE Christos Tsokanis insisted on voting against the bill saying that “it is another “firmani”, another “translation” of a community directive that confirms the class mark of the policy of the EU and the Government to strengthen the competitiveness of business groups and the creation of a favorable field of profit for big capital at the expense of the workers and the Greek people”. He characterized the alleged 15% taxation of multinational and domestic groups as “”a hoax”” as on the contrary “it reveals both the extent of the hypocrisy towards the Greek people and the role of the Government but also of all the other parties-pillars of the capitalist road of development, of profitability of capital and the European Union. This Directive, he said, has the quality of a valve “for the release of popular dissatisfaction with the role of the European Union, which seeks to save the most rotten, the most barbaric exploitative system, which has eaten its bread and is struggling to hold on in life”. He argued that the bill provides for the exemption of the minimum tax in cases of profitability below 1 million euros and turnover below 10 million euros for small groups. Establishes a tax exemption privilege for multinationals with the ability to deduct from their profits 5% of the value of their fixed equipment and 5% of their payroll in addition to depreciation and payroll costs. The shipping sector and the shipbuilding capital are exempt from taxation. It provides rules for mergers and acquisitions that create a privileged field of operation for multinationals. The deferred tax regime is strengthened, increasing the profit margins of groups that take advantage of the required liquidity for investments. It provides the possibility for multinational groups to transfer losses, offset investments and with tax tricks. Today’s bill, said the KKE member of parliament, “cultivates illusions about the alleged taxation of groups. This is a propaganda fraud of the European Union, the municipal governments and the parties of the Eurozone.”

The special buyer of Hellenic Solution, Vassilis Viliardos, observed that this bill “in general is complex and technical”. He stated that if his party also asked him a series of questions, these were not answered as the deputy minister described them as “technical” and wondered how “it is possible for the Greek Solution to vote on a bill without its questions being answered”. He noticed that there are countries outside the European Union that are not bound by the implementation of the Directive, from EU countries that do not want to tax groups and have suspended its implementation and added that “the right thing would be to apply the digital tax to transactions, as in France with a rate of 3%. He stated that the additional revenues that will be generated are only 75 million euros, most of which will come from Greek companies. He argued that “the Government with its policies essentially supports the dishonesty of the multinationals and the filthy lucre”

The discussion of the draft law will restart with the positions of the rest of the opposition’s special buyers. In the bill, 16 MPs from the parliamentary groups have been registered.