Setting Up a Company in Greece: Tax Benefits for Entrepreneurs and Investors

Reading time: 15 minutes

Table of Contents

• Introduction
• The Greek Economic Landscape
• Types of Business Entities in Greece
• Tax Benefits for Entrepreneurs
• Investment Incentives
• Legal Framework and Compliance
• Banking and Financial Considerations
• Real Estate Opportunities
• Conclusion
• FAQs

Introduction

As global economic landscapes continue to evolve, entrepreneurs and investors are increasingly seeking new opportunities in emerging markets. Greece, with its strategic location at the crossroads of Europe, Asia, and Africa, has been making significant strides in attracting foreign investment and fostering a business-friendly environment. This comprehensive guide delves into the intricacies of setting up a company in Greece, with a particular focus on the tax benefits and investment incentives that make this Mediterranean nation an attractive destination for business ventures.

The Greek Economic Landscape

Before we explore the specifics of company formation and tax benefits, it’s crucial to understand the current economic climate in Greece. After weathering a severe economic crisis, the country has implemented substantial reforms and is now on a path of steady recovery and growth.

Key Economic Indicators

Recent data paints an encouraging picture of Greece’s economic resilience:

• GDP Growth: The Greek economy has shown consistent growth over the past few years, with projections indicating continued expansion.
• Foreign Direct Investment (FDI): There has been a notable increase in FDI inflows, signaling growing international confidence in the Greek market.
• Unemployment Rate: While still higher than the EU average, unemployment has been steadily decreasing, reflecting improved labor market conditions.
• Inflation: Inflation rates have stabilized, contributing to a more predictable business environment.

These indicators underscore Greece’s potential as a destination for business establishment and investment. The government’s commitment to economic reforms and the country’s strategic location make it an increasingly attractive option for entrepreneurs looking to expand their operations in Europe.

Types of Business Entities in Greece

Greece offers several options for business entities, each with its own characteristics and legal requirements. Understanding these structures is essential for making an informed decision about the most suitable form for your business venture.

Limited Liability Company (EPE)

The EPE is a popular choice for small to medium-sized businesses. Key features include:

• Limited liability for shareholders
• Minimum capital requirement of €4,500
• At least two founding members required
• Flexible management structure

Société Anonyme (AE)

The AE is suitable for larger enterprises and offers:

• Limited liability for shareholders
• Minimum capital requirement of €25,000
• More complex management structure with a board of directors
• Ability to be listed on the stock exchange

Private Capital Company (IKE)

Introduced in 2012, the IKE is designed to simplify business formation:

• No minimum capital requirement
• Flexible contribution options (capital, labor, or in-kind)
• Streamlined establishment process
• Limited liability for members

Tax Benefits for Entrepreneurs

One of the most compelling reasons to consider setting up a company in Greece is the range of tax benefits available to entrepreneurs. The Greek government has implemented several measures to create a more favorable tax environment for businesses.

Corporate Income Tax Rates

Greece has been progressively reducing its corporate income tax rates to attract investment:

• The current corporate tax rate stands at 22%, down from 29% in recent years
• Further reductions are planned, aiming to make Greece more competitive within the EU

Tax Incentives for New Businesses

To encourage entrepreneurship, Greece offers special tax incentives for newly established companies:

• Reduced tax rates for the first three years of operation
• Tax credits for research and development activities
• Accelerated depreciation allowances for certain types of investments

Special Economic Zones

Greece has established Special Economic Zones (SEZs) in various regions, offering additional tax benefits:

• Lower corporate tax rates within these zones
• Exemptions from certain local taxes
• Simplified customs procedures for import/export activities

Investment Incentives

In addition to tax benefits, Greece provides a range of incentives to attract foreign investment and stimulate economic growth.

Investment Law Framework

The Greek Investment Law offers various forms of support for new investments:

• Cash grants covering a percentage of the investment cost
• Tax exemptions on profits
• Subsidies for leasing costs
• Wage subsidies for new employment

Fast-Track Approval Process

For strategic investments, Greece has implemented a fast-track approval process:

• Expedited licensing procedures
• Priority processing of permit applications
• Dedicated support from government agencies

Sector-Specific Incentives

Certain sectors receive additional support due to their strategic importance:

• Renewable energy projects
• High-tech and innovation-driven industries
• Tourism and hospitality developments

Legal Framework and Compliance

While Greece offers attractive benefits, it’s crucial to understand and comply with the legal framework governing business operations.

Company Registration Process

The process of registering a company in Greece has been streamlined in recent years:

• One-stop-shop services for business registration
• Online submission of required documents
• Average processing time of 1-2 weeks for most business types

Regulatory Compliance

Ongoing compliance is essential for maintaining good standing:

• Regular financial reporting requirements
• Adherence to labor laws and social security regulations
• Compliance with industry-specific regulations

Banking and Financial Considerations

Access to banking services and financial markets is a crucial aspect of operating a business in Greece.

Opening a Business Bank Account

The process of opening a business bank account in Greece involves:

• Providing company registration documents
• Submitting identification for company directors and shareholders
• Meeting minimum deposit requirements (varies by bank)

Access to Financing

Greek businesses have various financing options:

• Traditional bank loans
• EU-funded programs and grants
• Venture capital and private equity investments

Real Estate Opportunities

For businesses considering physical premises in Greece, the real estate market offers interesting opportunities. Whether you’re looking for office space in Athens or considering a hospitality venture on one of the Greek islands, there are options to suit various needs and budgets. For those interested in combining business operations with property investment, exploring greek property for sale can provide valuable insights into the market.

Commercial Real Estate Trends

The Greek commercial real estate market has shown resilience and growth:

• Increasing demand for office space in major cities
• Growing interest in logistics and industrial properties
• Opportunities in the hospitality sector, particularly in popular tourist destinations

Conclusion

Setting up a company in Greece offers a unique blend of opportunities for entrepreneurs and investors. The combination of attractive tax benefits, strategic location, and improving economic conditions makes Greece an increasingly appealing destination for business ventures. While challenges remain, the government’s commitment to fostering a business-friendly environment and the ongoing reforms in various sectors signal a positive trajectory for the Greek business landscape.

As with any international business venture, thorough research and professional advice are crucial. The potential rewards of establishing a presence in this dynamic Mediterranean market, however, make it a compelling option worthy of serious consideration for forward-thinking entrepreneurs and investors.

FAQs

1. What is the minimum capital requirement for starting a company in Greece?

The minimum capital requirement varies depending on the type of company. For a Limited Liability Company (EPE), it’s €4,500, while for a Société Anonyme (AE), it’s €25,000. The Private Capital Company (IKE) has no minimum capital requirement.

2. How long does it typically take to set up a company in Greece?

With recent reforms, the process has been streamlined. On average, it takes about 1-2 weeks to complete the registration process for most types of businesses.

3. Are there any restrictions on foreign ownership of companies in Greece?

Generally, there are no significant restrictions on foreign ownership of companies in Greece. However, certain strategic sectors may have specific regulations or require additional approvals.

4. What are the main tax benefits for new businesses in Greece?

New businesses can benefit from reduced tax rates for the first three years of operation, tax credits for R&D activities, and accelerated depreciation allowances for certain investments.

5. Is it necessary to have a Greek partner to start a business in Greece?

No, it is not mandatory to have a Greek partner to start a business in Greece. Foreign entrepreneurs can fully own and operate companies in most sectors without local partnership requirements.

Article reviewed by Michelle Hope, Real Estate and Investment Expert, on March 28, 2025