Many investors nowadays approach Greece and establish companies mainly because of the following factors:
- Low Real Estate prices
- Low labor costs
- Legislation that provides that all third country investors get granted a permanent residency for investments in RE over €250,000
- Infrastructures (Roads, ports and train) are now been upgraded aiming to the main gateway of Europe for imports from China, India and Africa
- Tourism is hitting new records for the past three years; in 2018 a new record is expected.
Type of companies
There are four main forms of Greek business entity, and they are as follows:
- Stock corporation (A.E.)
- Limited liability corporation (E.P.E.)
- Partnerships (O.E. & E.E.)
- Branches
Main features for Stock Corporation (A.E.)
- The minimum share capital is €60,000
- Standard format for major public companies
- Widely adopted by sole proprietors because of flexibility
- Board of directors and auditors required
- The liability of the shareholders is limited to the amount of capital invested.
Advantages:
- Suitable for large companies.
- Shareholders are liable only for the amount of capital they have contributed and all decisions are taken either by simple or special majority voting.
- High flexibility in transferring shares and in the input and output of shareholders.
- Favourable by banks and market authorities because of the high amount of capital (€60.000).
- Reliability towards the public authorities, banks, clients and suppliers.
The main features for a Limited Liability Corporation are:
- At least one shareholder, individual or legal entity.
- Minimum share capital of €4.500
- Popular format because of limited liability
- Statutory financial reporting requirement
Advantages:
- Suitable for small and medium size businesses.
- Shareholders are liable up to the amount of capital they have contributed.
- Fewer formalities than the Stock corporation (A.E.)
- Option to prohibit transfer of company’s shares.
- Flexibility to define the shareholders’ relationships.
- Low amount of minimum required capital.
Main features of a partnership:
- Available either as a general (OE) or limited (EE) partnership
- Foreign investors tend to prefer limited-liability EE partnerships
- Minimum of two partners, no minimum share capital required, but usually €1000
- Much fewer formalities and regulatory intervention
Main features of a branch:
- Foreign parent must meet Greek share capital requirements
- Foreign parent responsible for legal and tax affairs of branch
- Branch required to register with Greek authorities
- Minimum of one director; there are formal accounting requirements
- Must appoint a local representative who is jointly and severally liable for payment of taxation unless the client opts for a Stock corporation (A.E.) where they will only need a proxy for the Greek Tax Authorities
- A Bank guarantee may also be required
Staff recruitment
Greece has significant unemployment and labour costs are among the lowest in the EU. The workforce is well educated. It is advisable to use a local recruitment agency.
Regulatory environment
The business environment in Greece is surprisingly liberal given the country’s reputation for bureaucracy. New online systems have reduced bureaucratic issues. These include Tax and National Insurance as well as Chamber of Commerce transactions, apart from the fully digitized banking.
Regulatory standards are in line with other EU member states. There are no import restrictions or tariff barriers and capital and earnings can be freely repatriated.
Greece has double taxation treaties with a number of other countries. Nonetheless, it is important to note that Greek tax regulations are detailed, complex, and change frequently, and it is therefore strongly advised to get a consultation from a local specialist for tax planning.
