Luxury cars may be at the center of this story – but they are only the surface. Behind the tinted windows lies a network of power, privilege and quiet rule-breaking by a cross-section of social groups.
From corporate offices and elite medical practices to sports management circles and the edges of the underworld, some of the drivers of these vehicles are anything but random. Shipowners, wealthy doctors, multi-market businessmen, manufacturers, agents handling million-euro contracts – and even individuals linked to law enforcement – appear to share a common strategy: registering high-end cars abroad to avoid taxes at home.
Most of them declare they are tax residents abroad. For example, a well-known doctor declared himself a tax resident of Germany, but maintained a practice in Greece, his child went to a private school declaring a Greek address and, as it was found, his true interests were in our country and not in Germany. Similarly, a businesswoman declared her tax residence in Egypt, while her child went to a Greek school and she lived in Greece for most of the time. Essentially, many of those involved declared themselves tax residents abroad to avoid paying taxes and fees.
The choice is not accidental. For some, it is a means of tax “optimization,” for others a tool for hiding assets, while in more extreme cases it functions as a cover for illegal activities. Luxury vehicles with license plates from countries such as Bulgaria, Germany, Cyprus, Romania and Albania were being used illegally in Greece.
These practices came to light after the tax authority’s DEOS squad launched a large-scale crackdown that has led to the seizure of 229 luxury vehicles. Using data from tolls, customs and advanced digital risk analysis tools, inspectors did not simply target the vehicles, but mainly the profiles of the people behind them. That is, people who appear to have a high standard of living, but declare a tax presence outside of Greece or income that is not in line with their assets’ value.
Officials say the investigation is ongoing, focusing on both tax violations and potential criminal networks behind the practice.