Greek tax haven facing government clamp down

Any offshore company formation in the Greek state of Porto Heli, is likely to be under threat from the Greek government, which is stepping up its pursuit of overseas investors.

According to a report from MSN News, recent months have seen the hamlet, based on the Argolis prefecture, increasingly targeted by the Greek tax authorities.

It comes after the construction boom of the 1990s, which saw numerous firms seek an offshore company setup in the region.

In total, 170 different organisations registered for offshore business status in the region, a high number considering the small population.

This number is quickly being eroded though, as the government attempts to make up a short-fall in its coffers by raising taxes.

According to MSN News, the Greek state has already raised taxation on offshore business property holdings by five times the previous amount in the last few years.

Porto Heli council chairman Constantino Kokkalis has backed the ongoing plans for tax reforms though, noting "the time for tolerance is over".