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This shop suddenly appeared in Glossa on Sunday evening. Yes, OK, the fit-out has been visible for a couple of weeks, but no fascia, no little pink chairs and tables. I for one had no idea what it was about to become. And yes, OK, it's on the main pedestrian thoroughfare through the village so may get more passing trade than another location, but it's still 200m above beach level. In these days of economic crisis there are far fewer Greeks visiting the islands, and not so many Germans either it has to be said. The Brits and Scandinavians tend to be quite beach-orientated and not vast numbers go exploring the twisty stepped streets of the village. August is the main tourist season in the village, with a dance extravaganza taking place at the school on Sunday night, and then the huge feast of the Assumption of the Virgin on Friday and Saturday. So this little shop really has only about three weeks to turn a profit.

In Greece (famous for alleged tax evasion) individuals are taxed on their lifestyle, not necessarily their income, so if you have a house of x square metres and a car of a specific age and engine capacity, your debt to the Government coffers is calculated from that. I don't remember all the specifics but I do know that a wife is calculated to cost 500 Euros per annum. Once all your assets have been assessed your expected cost of living is calculated and that is the sum on which you must pay tax. If your income comes from abroad you have to prove that you brought that sum into the country and then your tax bill is zero.

If you start up a business you must send quarterly accounts to the tax office. Presumably this business' books began on 1st July. As we all know, when opening a business there are start-up costs, and to the best of my knowledge, in Britain some of these may be tax-deductible. But in Greece anything you spend before turning a profit is 'unreal income' and if you don't make a profit in your first quarter (*) then your losses are taxed at a higher rate than your profits would be if you were lucky enough to make some.

So I hope that before the end of September this little place has managed to sell enough crepes, waffles, honey balls, cup-cakes, ice-creams, sorbets, coffees, fresh juice and soft drinks to turn a profit, otherwise it will be landed with an enormous tax bill for the fit-out. Is it really any wonder that the Greek economy is struggling to get back on its feet?


(*) To the best of my understanding, it might be the first 2 quarters, in which case this shop can stumble along until 31st December before receiving a hefty tax bill.