Outrage at Greek island property tax
Archimedes: September 2011
Outrage at Greek island property tax.
A new Greek Island emergency property tax looks set to leave thousands of UK holidaymakers out of pocket.
Holiday Brits who have brought property in Greece have been caught up in a new emergency tax aimed at plugging a €2bn shortfall in the budget this year.
Property experts estimate it could cost up to €1,000 a year for Greek holiday Brits who have bought holiday homes on the islands.
The new Greek property tax, introduced without notice, has sparked outrage among Greeks already hit hard by the government's austerity measures.
Tens of thousands of Britons have bought holiday homes in Greece in recent years as a relaxation in property buying laws has attracted a rising number of second-home owners.
The Greek holiday islands of Corfu and Crete are especially popular with British holidaymakers who decide to retire to the Greek Islands.
The new duty will be added to electricity bills to make sure that all who live there pay up — including foreign-based home owners.
As Greece's budget deficit expected to be nearer 10% of GDP than the 7.4% originally forecast the government is forced to take desperate measures.
The property tax was the best way to produce results quickly according to the Greek finance ministry. But the move is expected to trigger widespread protest throughout Greece.
And Greek power companies shave complained at being turned into tax collectors and warned they will not turn off power supplies of people who do not pay.