Doing business in Greece involves a straightforward process for company formation, favorable tax incentives, and compliance with EU and national regulations. The Greek government has made significant efforts to digitize services and streamline procedures to attract foreign investment.
Here’s a breakdown of the key steps and considerations:
Setting Up Your Business in Greece
The process for starting a business in Greece has been largely digitized.
1. Secure Legal Standing and a Greek Tax ID (TIN/AFM)
Before anything else, all founders and the company itself must have a Greek Tax Identification Number (TIN, or AFM).
- Non-EU Citizens: You generally need a valid residence permit (such as an entrepreneur visa) that allows you to carry out business activity before applying for a TIN. You may need to apply in person at a local tax office (DOY) or via legal representation.
- EU Citizens: You can often obtain a TIN remotely through the
myAADEliveplatform. - The TIN is essential for all financial and legal activities, including registering your business and opening a bank account.
2. Choose Your Legal Structure
Your business structure impacts liability, capital requirements, and administrative complexity. The most common options are:
- Private Company (I.K.E. – Idiotiki Kefalaiouxiki Etaireia): The most popular and flexible choice for small to medium-sized enterprises (SMEs) and foreign investors. It requires as little as €1 in minimum capital and provides full limited liability.
- Limited Liability Company (E.P.E. – Etaireia Periorismenis Efthinis): Common for SMEs, with capital divided into parts.
- Public Limited Company (A.E. – Anoˊnymi Etaireıˊa): Ideal for larger businesses planning to raise capital. Requires a minimum share capital of €25,000.
- Sole Proprietorship (Atomiki Epicheirisi): Simple for freelancers or single owners, but the owner has unlimited personal liability.
3. Registration
Company registration is largely done through the General Commercial Register (GEMI) system, which serves as a “One-Stop-Shop.”
- Reserve a Company Name: Check and reserve the name through the GEMI portal.
- Draft Articles of Association: These are the foundational legal documents detailing the company’s structure. For simpler forms like I.K.E., this can often be completed digitally. For A.E. and E.P.E., notarization is typically required.
- File with GEMI: Submit the necessary documents. Once approved, the company is automatically registered with the tax authorities (AADE) and receives its official GEMI number.
4. Post-Registration Steps
- Open a Business Bank Account: You’ll need the company’s registration certificate, TIN, and proof of identity.
- Register for VAT and Taxes: Your company is generally automatically registered for Corporate Income Tax and a VAT number through the GEMI process. All businesses engaging in taxable transactions must register for VAT (no minimum threshold applies).
- Register with EFKA (Social Security): All employers, including single-member companies drawing a salary, must register their business and employees with the National Social Security Fund.
- Obtain Specific Licenses: Depending on your industry (e.g., food service, financial services, real estate), you may need sector-specific licenses or municipal permits.
Taxes and Compliance
Understanding the Greek tax regime is crucial for compliance.
Corporate Taxation
- Corporate Income Tax (CIT): The standard rate is 22%.
- Dividend Withholding Tax: A low rate of 5% is typically applied.
- Tax Incentives: Greece offers various incentives, including significant tax deductions for R&D expenses and programs to attract non-residents (e.g., non-dom tax regimes, reduced income tax for digital nomads who relocate their jobs).
Other Taxes
- Value-Added Tax (VAT): The standard rate is 24%. Reduced rates of 13% and 6% apply to specific goods and services.
- Social Security Contributions: Employers must register and pay contributions to EFKA for employees.
Business Culture & Investment Climate
Greece’s business environment has significantly improved due to economic reforms and digitalization efforts.
- Investment Climate: The government actively promotes Foreign Direct Investment (FDI) through institutions like Enterprise Greece. There are specific screening mechanisms for foreign investments in sensitive or particularly sensitive sectors (like energy, defense, critical infrastructure) which may require prior notification and clearance.
- Business Etiquette:
- Relationships are Key: Business is often personal. Building trust and a strong rapport is highly valued, so networking and face-to-face meetings can be important.
- Punctuality: While Greek business people are generally punctual, meetings may start slightly later than in some Northern European countries. However, visitors should strive to be on time.
- Hierarchy: Decision-making can be hierarchical, and respecting senior members of a company is important.
Disclaimer: This information is a general guide and regulations are subject to change. It is strongly recommended to consult with a local Greek lawyer and tax advisor/accountant early in the process to ensure full legal and tax compliance.