Kastri Mansion under threat due to tax debt

The home of three generations of Greek prime ministers is burdened by 500,000 euros worth of tax debt

The historic mansion of three prime ministers of the Papandreou family in Kastri is under threat after Sofia Papandreou-Meneiko, who currently resides in Canada, forgot to pay her dues to the Greek tax office from 2009 onwards. The money owed to the Greek state is 500,000 euros in total of which 300,000 euros are overdue.

Official sources state that the money owed by Ms. Papandreou comes from unpaid tax payments, especially on the Kastri mansion and the luxury maisonettes that was built on property there. One of these maisonettes is currently being rented out to the former Prince Nicholas, son of the former king of Greece. The same sources state that from 2012 to 2013, Ms. Papandreou had given assurances that taxes worth 700,000 euros, concerning mainly her property would be paid. 200,000 euros had been taken care of however there are still hefty back payments owed.

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Experienced revenue officers believe that the confiscation of Kastri mansion should already have taken place or at least the rent accrued should have been given to the state especially in light of the fact that ordinary citizens who delay tax payments worth 300,000 euros for four months face legal action. In fact, a memorandum sent to tax offices stated that those who have overdue funds worth 50,000 euros or more are considered suspect for money laundering.

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The 5.5 acres at Kastri, owned by former prime minister George Papandreou’s sister, is where Galini mansion is also located. The mansion that was inherited by her grandfather George Papandreou, also a former prime minister, was characterized a historical monument in 1999. As such, it received a 50 percent slash to tax payments according to article 23 of Law 2459/97. In 2007, Ms. Papandreou-Meneiko successfully appealed to the State Council to revoke this classification so that she could commercially exploit the property thus ending the tax break. Her claims that Galini mansion – home to three different Greek prime ministers – had no architectural interest came in direct contrast to a letter she had sent to former socialist PASOK environment minister Kostas Laliotis in 2000 asking for funds to maintain the mansion after it was damaged by the Parnitha earthquake in 1999. “I believe, Mr. Minister, that the area where George A. Papandreou and Andreas G. Papandreou lived and worked deserves to be conserved in its present state in order to honor their memory and work,” she wrote.

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She chose to erect a complex of maisonettes on the property. Two large constructions, each with four different luxury homes from 140 to 300 square meters was created complete with swimming pools, jacuzzis and the like – one of which is rented out to Prince Nicholas of the former Greek royal family. Her brother also bought 640 square meters from Ms. Papandreou-Meneikou in Kastri which is where he currently resides.

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In response to claims against her, Ms. Papandreou-Meneikou says that there are overdue tax payments however a portion of these had been regulated and instalments are being paid. She said that she is currently in the process of selling the property and fully paying her debt adding that there was no intent to avoid tax payments.

The Papandreou family picturing three generations of prime ministers…

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