Bloomberg: Tsipras’ Tax Hikes May Dampen Start-Up Economy

old boat in the stormy ocean

Bloomberg’s article, titled “Greek Startups Say Tsipras’ Taxes Are One More Reason to Leave,” states that a new round of tax increases may be “the last straw for fledgling companies with dreams of making it big.”

The article interviews a number of investors, such as Vassilis Sioros, chief executive officer of Ardustech P.C., a small company with big plans for the use of olive oil in the pharmaceuticals, food and cosmetics industries. “The state can invest without giving money by allowing startups to pay no tax or social security contributions for one year, or at least reduce them,” he says, adding that this would give startups a lease of life.

“Greece has competitive advantages for startups, such as excellent and internationally recognized scientists and engineers, and low personnel costs and operating expenses,” said Vassilis Stivaktakis, chief executive officer and founder of OSEVEN smartphone-only solutions for insurers to collect accurate data on drivers. “However, the overall economic picture of Greece weakens these advantages in the eyes of investors.”

Though startups are a key piece for the revival of Greece’s economy that has shrunk by a quarter, the environment is difficult. The latest tax increases as part of a deal agreed to with Greece’s creditors in May may further dampen Greece’s economy.