Greece

Economic and Legal Climate

Greece, located in southeastern Europe, has a diverse economy with strengths in sectors such as tourism, shipping, agriculture, and renewable energy. The country offers a strategic location at the crossroads of Europe, Asia, and Africa. Greece’s legal system is based on civil law, providing comprehensive legal protections and a transparent regulatory framework. As a member of the European Union (EU), Greece offers businesses access to the European Single Market and various EU trade agreements.

Official Languages

The official language of Greece is Greek. While English is widely spoken in business circles and among the educated population, proficiency levels can vary. Engaging local legal and business experts who are fluent in Greek is advisable for international investors.

Banking System

Greece has a well-developed and regulated banking system overseen by the Bank of Greece. The country hosts a variety of local and international banks offering comprehensive financial services. The banking sector has undergone significant reforms in recent years, leading to increased stability and stronger regulatory oversight, especially after the financial crisis of the late 2000s.

Maintenance Costs

Maintenance costs for companies in Greece are moderate. Annual compliance requirements include renewing business licenses, filing tax returns, conducting audits, and maintaining proper accounting records. These processes are relatively straightforward but can involve some administrative efforts and costs, which are generally manageable with the assistance of local professionals.

Setting Up Costs

Setting up a company in Greece involves several costs, including incorporation fees, legal fees, and registration with the General Commercial Registry (GEMI). The process includes drafting the company’s articles of association, obtaining a tax identification number (TIN), and registering for VAT. The incorporation process can typically be completed within a few weeks if all documentation is in order.

Corporate Tax Rate

Greece offers a competitive corporate tax rate of 22% on taxable profits. Additionally, the country provides various tax incentives and deductions for research and development (R&D), innovation, and investments in specific regions or sectors, enhancing tax efficiency for businesses. The government has introduced tax breaks and incentives to attract foreign investment, particularly in technology, renewable energy, and tourism.

Territorial or Non-Territorial Principles

Greece operates a worldwide tax system, meaning resident companies are taxed on their global income. However, extensive double taxation treaties and incentives are available to help mitigate the impact of double taxation and enhance tax efficiency for foreign investors.

Currency Regulation

As a member of the European Union, Greece imposes no significant restrictions on foreign exchange transactions, allowing for the free flow of capital within the EU and internationally. The currency used is the Euro (EUR).

Advantages of Setting Up a Company in Greece

1. Strategic Location: Greece’s location provides easy access to European, Middle Eastern, and North African markets.
2. Skilled Workforce: Access to a well-educated and skilled labor force, particularly in sectors such as technology, shipping, and tourism.
3. Government Incentives: Various tax incentives and support programs for innovation, R&D, and investments in economically disadvantaged regions.
4. High Quality of Life: Greece offers an excellent standard of living, with a pleasant climate, rich cultural heritage, and high safety standards, making it an attractive destination for expatriates.
5. Growing Economy: Recent economic reforms and recovery efforts have positioned Greece as an attractive destination for investment.

Disadvantages of Setting Up a Company in Greece

1. Bureaucratic Complexity: Navigating Greece’s regulatory and bureaucratic landscape can be challenging and time-consuming.
2. High Costs: The cost of living and doing business in major cities like Athens and Thessaloniki can be relatively high.
3. Economic Volatility: While improving, Greece’s economy has faced significant challenges in recent years, which may present risks for some investors.

Conclusion

Greece offers a highly attractive environment for setting up a company, with its strategic location, skilled workforce, and government incentives. Despite challenges such as bureaucratic complexity and economic volatility, the advantages of a business-friendly environment, central location, and high quality of life make Greece a compelling destination for business expansion. Global Expand can assist you in navigating the complexities of setting up a company in Greece, ensuring a smooth and successful entry into this dynamic and business-friendly market.