Giorgos Pappas, the deputy shadow finance minister of the Greek ELAS party, has detailed a proposed one percent net wealth tax targeting top earners.
Speaking during an interview on SKAI radio, Pappas stated that the temporary patriotic contribution measure, proposed by party leader Alexis Tsipras, would apply to the wealthiest one percent of natural persons.
Pappas explained that the tax would be enforced through a comprehensive national asset registry recording an individual's total net financial standing, including real estate, bank deposits, stocks, vehicles, and financial investments.
Scope of the Asset Registry
During the radio broadcast, Pappas noted that the proposed asset registry could also extend to jewelry and other valuables stored in bank safety deposit boxes.
When questioned about whether capital would flee abroad or shift into corporate entities ahead of potential government changes, Pappas acknowledged the transnational nature of capital while maintaining that the party anticipates higher revenues than currently cataloged.
Pappas clarified that revenues from the patriotic contribution were excluded from the fiscal program announced by Tsipras in Thessaloniki the previous day, as the complete asset registry remains unfinished and precise figures cannot yet be calculated.
Tax Calculation and Offsetting Mechanism
Outlining the financial mechanics, Pappas stated that the levy will function through an offsetting mechanism rather than imposing a double tax burden on property holders.
Under the proposed structure, existing tax burdens already paid on an asset, such as current real estate taxes, will be deducted from the calculated one percent patriotic contribution, leaving the taxpayer to pay only the positive difference.
For example, if an individual's existing property tax amounts to 10 euros and the calculated patriotic contribution is 12 euros, the taxpayer would pay only the 2 euro difference.
Corporate Structures and Regulatory Background
Pappas specified that the proposal directly targets natural persons rather than corporate entities. To trace assets held behind corporate structures, authorities would utilize the Ultimate Beneficial Ownership Register to identify true owners.
Describing the levy as a patriotic duty, an act of responsibility, and a requirement for social cohesion, Pappas noted that the temporary tax would run for several years to fund public education, healthcare, and middle class support initiatives.
The concept of a universal asset registry was previously planned under SYRIZA administrations and was formally legislated in 2018, though it has never been put into full operation.
Clarification on Personal Valuables
Following his broadcast comments, Pappas issued a written clarifying statement emphasizing that the patriotic contribution will not be based on women's jewelry, but on high movable and immovable wealth.
Pappas noted that real estate is already registered, while movable assets such as shares, bonds, and bank deposits must be cataloged, pointing out that countries such as Switzerland and Spain already enforce similar registration for wealth taxation.
