"Somewhere along the way, Rolex watches and veterinary services ended up in the same tax bracket," Nikos Karamouzis, chairman of private equity firm SMERemediumCap, said on Tuesday at the presentation of veterinary hospital operator Plakentia. "Veterinary care should not be treated as a luxury good."
Greece applies its standard 24% VAT rate to veterinary services, among the highest in the European Union. Karamouzis said a 2022 EU directive allows member states to apply reduced VAT rates to veterinary care and argued that Greece should take advantage of that flexibility.
"Healthcare for people carries zero VAT. It is time to correct this injustice for the thousands of pet owners as well," he said, adding that a lower tax rate would reduce incentives for cash transactions and help bring more activity into the formal economy.
Karamouzis made the comments as he outlined the expansion of Plakentia, which SMERemediumCap has built into Greece's largest organized provider of secondary veterinary care since investing in the company in 2022.
The firm initially backed Plakentia in partnership with veterinarian Ignatios Liapis, when the business generated annual revenue of €1.8 million. The network now operates nine facilities, including veterinary hospitals in Athens and Thessaloniki, a specialized referral hospital, clinics on four Cycladic islands, a veterinary clinic in Volos and a diagnostic laboratory for companion animals. It employs 123 veterinarians and about 230 people in total. Revenue is projected to reach €12 million in 2026.
Karamouzis said Greece's pet insurance market also remains at an early stage, with comprehensive products only recently becoming available. He called on insurers to expand coverage beyond routine preventive care to include surgery and other high-cost treatments.
He said demand for advanced veterinary services has grown as companion animals have become increasingly integrated into family life. Plakentia's model, he said, is intended to complement independent veterinarians by providing referral services, specialist care and access to advanced diagnostic equipment that smaller practices often cannot support.
SMERemediumCap has invested €22 million in the business since acquiring its stake. Karamouzis said veterinary healthcare is a capital-intensive sector where investments in facilities, equipment and specialist personnel typically require three to four years before generating returns.
The company's next phase of expansion will target regions where it currently has no presence, including Crete, the Peloponnese, Rhodes and Cyprus, with the aim of increasing annual revenue to about €20 million over the coming years.
Karamouzis also argued that businesses complying fully with tax and labor regulations face an uneven competitive environment, as some operators continue to function partly outside the formal economy. He said Plakentia would maintain full regulatory compliance despite the higher costs, and urged policymakers to create a more level playing field for the veterinary sector.
