Doing business in Greece
Greece continues to recover strongly after years of economic reform. With its appealing tax regime and strategic EU location, it offers several business advantages for foreign investors. However, dealing with bureaucracy and employment regulations does remain challenging.
Greece, situated in south-eastern Europe, operates as a parliamentary republic with a population if around 10.4 million. Athens serves as its capital and largest city, followed by Thessaloniki and Patras. As a member of both the European Union (EU) and the eurozone, Greece benefits from access to the EU's single market and funding opportunities.
The nation's economy thrives on tourism, shipping, agriculture and manufacturing. Recent years have seen an increase in foreign direct investment thanks to privatisation, digitalisation and tax reforms.
Advantages of doing business in Greece
Greece presents numerous benefits for international investors. It offers access to the European Union market which appeals to companies aiming to expand within Europe. Its location serves as a strategic link between Europe, Asia and Africa.
The government has enacted reforms to attract investment, including lower corporate tax rates, a solid legal framework aligning with EU standards and an easier licensing process. Incentives are provided for investments in renewable energy, digital technology and tourism. The real estate sector also keeps drawing foreign buyers, supported by residency permits via the Golden Visa program.
Challenges of doing business in Greece
Despite advancements, conducting business in Greece still has its obstacles, with Greece ranking as one of the most complex jurisdictions in TMF Group’s Global Business Complexity Index. Bureaucracy is a frequent issue, especially during business registration and licensing. Companies must interact with multiple authorities and deal with varied documentation requirements.
While improving, the legal and regulatory environment can be intricate. This is particularly true for employment law, tax audits and sector-specific licensing. Businesses should also be ready for evolving digital compliance obligations, including e-books and e-invoicing rules.
Compliance and the regulatory environment in Greece
Greece's regulatory environment is considered complex due to updated legal frameworks, digital reporting and stringent documentation standards.
Businesses must register with the General Commercial Registry (GEMI) and the Independent Authority for Public Revenue (AADE). Beneficial ownership details must be filed via the Central Ultimate Beneficial Ownership Register. Financial statements need to adhere to Greek GAAP or IFRS, depending on certain criteria.
Greece has implemented the Foreign Account Tax Compliance Act (FATCA)and Common Reporting Standard (CRS) for tax transparency and continuously revises its anti-money laundering regulations. Reporting requirements increasingly mandate the use of digital systems like myDATA and electronic invoicing.
Hiring and employment in Greece
Employment law in Greece is governed by national legislation and collective labour agreements. All employment contracts must be reported through the ERGANI platform, and companies must comply with working hour limits and social insurance contributions.
The minimum wage is set by law and reviewed regularly. Standard working hours are 40 per week with rules on overtime and rest periods. Employers must contribute to social security at about 22%, with employees contributing around 14%.
Hiring foreign nationals from outside the EU requires a work permit. Labour inspections are common, and proper documentation is essential for compliance.
The financial and tax environment in Greece
Greece has enhanced its tax environment in recent years. The corporate income tax rate is 22% and VAT is generally levied at 24%. Reduced rates apply to specific goods and services, and there are incentives for R&D and green investments.
Withholding tax is applicable to dividends (5%), interest (15%) and royalties (20%), though double taxation agreements may lower these rates. Resident companies are taxed on their global income, while non-residents are taxed only on Greek-source income.
All companies must keep accurate accounting records, file regular tax returns and comply MyData requirements.
Starting a business in Greece
Popular legal structures for foreign investors include:
- the Société Anonyme (SA)
- Private Company (IKE)
- Branch
Many opt for the IKE, due to its straightforward setup and flexible management. Incorporation is done through the One-Stop Shop or GEMI, typically requiring a Greek tax ID, articles of association, a bank account and notary procedures based on the legal form. Share capital needs vary but are minimal for IKEs and limited companies. Once formed, businesses must register for tax, social security and e-books (myDATA).
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