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Category: Legal
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Every year, the relevant tax authorities issue certificates for King Constantine and his family, confirming that no taxes are owed to the Greek State. The background history is as follows:
1974-1984
- In 1974, Konstantinos Karamanlis passed a law, by which the Greek Royal Family would be taxed on their immovable property and income.
- When the Papandreou Government was re-elected in 1981, the OA? (property tax) was introduced. Negotiations were initiated between the Greek Government and King Constantine due to the size of the taxable estate.
- An agreement was reached and was about to be signed when Andreas Papandreou was hospitalized in London. It was further postponed as elections came up; the new Government resumed negotiations, which led to the 1992 agreement.
The 1992 agreement
In 1992, King Constantine and the Greek Government made an agreement which was later ratified by Law. According to this law:
- The former King was to retain a piece of Tatoi (containing the house and the graves), Polydendri and Mon Repos.
- King Constantine established a Foundation to which he donated 37,000 stremmas (1 stremma = 1,000 sq m) of the Tatoi land for public use.
- The Latsis foundation was given 401 stremmas for the purpose of building the finest children's hospital in Europe. Latsis decided not to continue with the project after certain reactions in the Greek press.
- The Greek State was given 200,000 sq m, which the Papandreou Government leased to the US for their antenna installations. The 25-year lease exceeded the total amount of taxes owed by the Greek Royal Family at that time.
Furthermore, King Constantine personally paid $1,850m for past taxes and for penalties on these taxes. |
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