Greece has managed to overcome financial and economic difficulties and successfully avoid default. There is every reason to believe that difficult times are over: GDP growth in the country in 2021 amounted to 2.2%. Even though according to Doing Business data, at the end of 2021, Greece was ranked 72nd in the world (out of 190) in terms of ease of doing business, business in Greece continues to be profitable.
Among the advantages that may interest both beginners and experienced businessmen, it is worth mentioning:
- equal rights for Greek citizens and foreigners in business matters, the presence of a clear legislative framework that prevents officials from interfering in the activities of entrepreneurs;
- availability of tax incentives for foreigners wishing to invest in the Greek economy – exemption from internal taxes, customs payments;
- advantages of business immigration: residence permit for a businessman and his family members, free movement within the Schengen area, “Golden Visa” for investments in Greece;
- existence of agreements on avoidance of double taxation with 57 countries;
- a high standard of living with lower living costs compared to most EU countries;
- affordable prices in the real estate market;
- government support – the creation of an EquiFund to help entrepreneurs, the operation of business incubators – liability, Corallia, Orange Grove, EGG, etc.
Greek Legislation
Corporate tax in Greece is one of the highest in Europe. Some activities are subject to cumulative taxes of up to 60%. Greece attracts investors who are actively investing billions of euros in its economy.
There is no offshore zone in Greece, but the country’s legislation provides an opportunity for non-residents to conduct business in the state at reduced interest rates regarding taxation. An investment of 50,000 euros in the development of the management apparatus will be sufficient and conduct activities directly outside Greece.
Taking into account such requirements, the legislation provides registered companies with several privileges:
- no taxation;
- there is no need to pay postage and other fees;
- you can conduct accounting in your native language;
- the simplicity of the procedure for registering and opening a company;
- you can be registered within 1 month;
- complete confidentiality.
The labor resources of a foreign state receive a permit for 2 years with the subsequent possibility of its extension.
Summing up, it can be noted that the loyalty of the legislative norms allows businessmen to open an offshore company in Greece without any problems and be confident in the safety of funds in open accounts.
Law number 89, provides for a whole bunch of tax breaks for foreign companies.
So, according to this law, a foreign company that has no sources of income in the country is almost completely exempted from all internal taxes, including postage, income, and customs duties.
The income of foreign companies, within the framework of the same law, is also exempt from taxes on income from capital placed in Greek banks. The Greeks rightly judged that the turnover from the cash flow would be more than enough.
Until recently, foreign companies had the right to purchase and sell securities and government bonds duty-free, as well as lend to any Greek enterprises and not pay taxes on income from investment activities. Under pressure from the European Parliament, these unprecedented indulgences were almost completely canceled, and now foreign investors have to pay tax on the sale of securities on the stock exchange, which is 0.15%, and the investor must spend at least 50,000 euros a year on maintaining a branch in Greece.
Taxation of shipowners is still very low, which attracts a huge number of foreign shipping companies to the country. Even the wealthy who know how to count money prefers to register their luxury yachts in Greece due to the low fees.
What else is Greece attractive for?
Greece has agreements on the avoidance of double taxation with more than 45 countries around the world. This means that the investor, even if completely exempted from paying taxes in Greece, will not have to pay taxes in his homeland.
Of course, even 100% of tax-exempt investors bear some costs. These are government fees, the so-called stamp forms, as well as overheads that accompany any modern business.
To register a branch of a foreign company, you need to apply to the Greek Ministry of Finance for a special permit. Depending on the type of activity and the size of the company, obtaining a permit will take from several weeks to several months.
