Starting a Business in Greece as a Foreigner: Complete 2023 Guide

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Introduction to the Greek Business Environment

Thinking of launching a business under Mediterranean skies? Greece’s economic landscape has transformed dramatically since the 2008 crisis, creating a unique opportunity for foreign entrepreneurs. The country has implemented significant reforms to attract international investment and simplify business procedures.

Here’s the unvarnished truth: while Greece offers tremendous potential with its strategic location bridging Europe, Asia, and Africa, navigating its business ecosystem requires local insight and strategic patience. The reforms are real, but so are the remaining bureaucratic challenges.

Consider Sophia’s experience: “I moved from Canada to launch a tech startup in Athens in 2021. The initial paperwork seemed overwhelming, but working with local experts helped me navigate the system. Two years later, we’re thriving with access to both EU markets and talented local engineers at competitive rates.”

Recent data reveals the changing landscape:

As Dr. Nikolaos Karamanis, Professor of Economics at Athens University, notes: “Greece is undergoing a business renaissance with targeted reforms simplifying startup processes specifically for foreign entrepreneurs. The key advantage is combining EU market access with lower operational costs than Western European alternatives.”

Legal Business Structures in Greece

Your choice of legal structure will significantly impact everything from taxation to personal liability. Greece offers several business entity options for foreign entrepreneurs:

Private Capital Company (IKE)

The IKE has become the go-to structure for most foreign entrepreneurs entering the Greek market. Introduced in 2012 specifically to simplify the entrepreneurial process, it offers flexibility with a minimum capital requirement of just €1.

Alexander, a British entrepreneur who launched an e-commerce platform in Thessaloniki, shares: “The IKE structure gave us limited liability protection without the hefty capital requirements. The flexibility in shareholder agreements allowed us to structure partnerships exactly as we needed.”

Key IKE advantages:

• Minimal capital requirements (€1)
• Limited liability for shareholders
• Simplified establishment procedures
• Flexible internal structure
• No requirement for public notary involvement in many procedures

Limited Liability Company (EPE)

The EPE represents a middle ground between simpler structures and full corporations. While requiring more formalities than an IKE, it offers enhanced credibility with certain business partners and financial institutions.

When to consider an EPE:

• For businesses seeking substantial bank financing
• When planning significant capital investment
• For partnerships with established Greek businesses familiar with this structure

Société Anonyme (AE)

The AE structure is Greece’s equivalent to a corporation, suitable for larger operations. While offering maximum business credibility, it comes with stricter governance requirements and higher costs.

“We initially considered simpler structures,” explains Martina, a German investor who established a hospitality group in Crete. “But the AE structure sent the right signal to our hotel partners and facilitated easier capital raising. The extra compliance costs proved worthwhile for our scale of operations.”

Step-by-Step Registration Process

Greece has digitized much of its business registration process through the electronic One-Stop Shop system. Here’s your roadmap:

Preliminary Preparations

Before initiating formal registration, you’ll need:

1. Tax Representative: If you’re not an EU citizen or don’t have Greek tax residency, you must appoint a Greek tax representative (typically an accountant or lawyer).
2. Business Plan and Documentation: Prepare your business purpose statement, initial shareholders agreement, and proof of address.
3. Name Check: Verify your desired business name availability through the General Commercial Registry (GEMI).
4. Bank Account: Open a business bank account with a Greek bank for capital deposit (necessary documentation varies by bank).

Pro Tip: While some guides suggest you can complete registration independently, realistically, most foreign entrepreneurs find working with a Greek business lawyer saves significant time and prevents costly mistakes.

The Registration Sequence

The streamlined process typically follows these steps:

1. Articles of Association: Draft and notarize (for certain business types) your corporate articles.
2. Tax Registration: Obtain your Tax Identification Number (AFM) from the tax authority.
3. GEMI Registration: Register with the General Commercial Registry.
4. Social Insurance Registration: Register with EFKA (Unified Social Security Fund).
5. Municipality Registration: Register with your local municipality for business tax purposes.

“The digital one-stop-shop worked surprisingly well,” notes Chen, a tech entrepreneur from Singapore. “However, the platform’s English version had some translation issues, and bank requirements still required in-person meetings. Budget approximately 3 weeks for the entire process when planning your timeline.”

Initial Costs and Requirements

Beyond time investment, establishing your Greek business requires financial planning. Here’s a realistic breakdown of standard startup costs:

• Registration Fees: €100-€700 (varies by business structure)
• Notary Fees: €300-€1,000 (for AE and sometimes EPE structures)
• Legal Counsel: €500-€2,000 (recommended for navigation of requirements)
• Accounting Setup: €200-€500 (initial systems and compliance)
• Minimum Capital: €1 for IKE, €25,000 for AE (must be deposited in Greek bank account)
• Translation Services: €100-€300 (for required documentation)
• Business Seal and Stamps: €40-€60
• VAT Registration: No direct cost, but accounting preparation approximately €150

Beyond these direct costs, you’ll need to consider operational setup expenses:

• Physical Office: While not mandatory for all businesses, some activities require a physical location. Commercial leases typically require 2-3 months’ security deposit.
• Insurance: Business liability insurance starts around €300-€600 annually, with additional coverage based on your industry.
• Accounting Services: Ongoing accounting support ranges from €100-€500 monthly depending on transaction volume.

Greek Business Taxation System

Understanding Greece’s taxation system is crucial for proper financial planning. The post-crisis reforms have improved clarity, but optimizing your tax position still requires professional guidance.

Core Business Tax Obligations

Your Greek company will face these primary tax obligations:

• Corporate Income Tax: Currently 22% (as of 2023) on net profits
• Value Added Tax (VAT): Standard rate of 24%, with reduced rates of 13% and 6% for specific categories
• Dividend Withholding Tax: 5% when profits are distributed to shareholders
• Social Security Contributions: Range between 36-38% of gross salaries (employer and employee portions combined)
• Municipal Taxes: 0.5% tax on annual turnover for most businesses

Katerina, a tax advisor specializing in foreign businesses, emphasizes: “Many entrepreneurs initially underestimate the impact of social security contributions, which represent a significant cost when hiring employees. However, recent incentives have reduced this burden for new technology companies and innovative startups.”

Tax Optimization Strategies

While full compliance is essential, legal tax optimization opportunities exist:

• Research and Development Credits: Up to 200% deduction for qualifying R&D expenses
• Special Economic Zones: Tax incentives for businesses operating in designated development areas
• Investment Law Benefits: Various tax breaks under Greece’s Investment Law for qualifying new ventures
• Strategic Business Location: Certain Greek islands and regions offer targeted tax incentives

Quick Example: A small technology company investing €50,000 in qualified research activities could potentially receive tax deductions worth €100,000, significantly reducing its effective tax rate.

Residency Options for Foreign Entrepreneurs

Building a business in Greece offers potential pathways to residency, which may be attractive for entrepreneurs seeking EU presence.

Non-EU Entrepreneur Visa

If you’re from outside the European Union, Greece offers a specific visa category for entrepreneurs investing in the country:

• Initial Investment: Minimum €300,000 business investment
• Job Creation: Must create at least three full-time positions for Greek/EU citizens
• Business Plan: Requires submission and approval of a comprehensive business plan
• Duration: Initially two years, renewable for three-year periods
• Path to Permanence: Possibility of permanent residency after five continuous years

Arjun, an Indian technology entrepreneur who relocated to Athens in 2020, shares: “The entrepreneur visa process was detailed but straightforward. The most challenging aspect was demonstrating the business plan’s viability to immigration authorities. Having pre-existing contracts or partnerships significantly strengthened our application.”

Golden Visa Program

An alternative pathway is Greece’s Golden Visa program, which offers residency through property investment:

• Investment Threshold: €250,000 minimum real estate investment (increased to €500,000 in certain high-demand areas as of 2023)
• Benefits: Five-year renewable residency permit with access to Schengen Zone
• Family Inclusion: Covers spouse, children under 21, and parents of both main applicant and spouse
• Residency Requirements: No minimum stay requirements to maintain permit

While this doesn’t directly relate to business formation, many entrepreneurs combine business establishment with property investment to secure residency through this more straightforward pathway.

Business Property Considerations

Whether leasing office space or buying real estate in greece, selecting the right property is crucial to your business success. The Greek real estate market offers distinct advantages for commercial ventures:

Commercial Leasing Fundamentals

If you’re considering leasing business space:

• Lease Terms: Commercial leases typically run 3-12 years, with minimum terms of 3 years protected by law
• Rent Adjustment: Annual increases typically capped at the official inflation rate plus 1-2%
• Up-front Costs: Expect to pay 2-3 months’ security deposit plus first month’s rent
• Additional Expenses: Common area maintenance and municipal taxes are typically additional

Important consideration: Unlike residential leases, commercial property contracts are highly negotiable. Key negotiation points should include renovation allowances, break clauses, and rent-free periods during initial setup.

Property Purchase Strategic Advantages

For businesses planning long-term operations, property purchase might offer advantages:

• Current Market Opportunity: Commercial property prices remain 30-40% below pre-2008 crisis peaks in many areas
• Asset Appreciation: Growing tourism and economic stabilization driving real estate recovery
• Potential Residency: Property investment potentially qualifying for Golden Visa program
• Rental Income: Possibility of renting portion of owned property for additional revenue

Marco, an Italian entrepreneur who established a food export business in 2019, explains: “We purchased our warehouse facility when prices were still recovering. Three years later, our property has appreciated nearly 20% while giving us complete control over our operational space. The initial investment was higher, but the medium-term benefits justified the approach.”

Strategic Business Locations in Greece

Greece offers diverse business environments across its mainland and islands. Your optimal location depends on your industry, target market, and operational needs.

Athens Metropolitan Area

The capital region remains Greece’s primary business hub, offering:

• Largest talent pool and consumer market
• Proximity to government offices and decision-makers
• International airport with extensive connections
• Growing startup ecosystem centered in areas like Marousi and Chalandri
• Higher operational costs compared to other regions

“Athens offers the strongest ecosystem for technology businesses,” confirms Maria, founder of a software development company. “The concentration of universities, incubators, and funding opportunities creates valuable synergies that outweigh the higher costs.”

Thessaloniki and Northern Greece

Greece’s second-largest city provides:

• Lower operational costs than Athens (approximately 15-20% less)
• Strategic location for Balkan market access
• Strong university presence creating skilled workforce pipeline
• Less saturated business environment
• Developing technology park with tax incentives

Island Economies

For tourism-focused or location-independent businesses:

• Crete and Rhodes offer year-round business possibilities
• Smaller islands provide lifestyle advantages but seasonal limitations
• Growing remote work communities on islands like Syros and Paros
• Reduced accessibility during winter months for many locations

Key insight: Location decisions should balance industry needs, lifestyle preferences, and logistical considerations. For many businesses, a hybrid approach works best – establishing legal headquarters in Athens while maintaining operational facilities in more cost-effective locations.

Common Challenges and Solutions

Even with recent improvements, foreign entrepreneurs face distinct challenges when establishing Greek businesses. Here’s how to address the most common obstacles:

Navigating Bureaucracy

Challenge: Despite digitization efforts, administrative procedures can still involve multiple agencies and unpredictable timelines.

Solution: Build bureaucracy management into your timeline and budget. Working with established service providers who maintain relationships with relevant agencies can significantly reduce friction. Budget for 30% more time than officially indicated for administrative processes.

Helena, who launched a health food business in 2022, shares: “We engaged a business services firm with specialization in foreign businesses early in our planning. Their established relationships prevented what could have been months of delays for our specialized food production permits.”

Banking Relationships

Challenge: Opening business bank accounts can be unexpectedly complicated, with extensive documentation requirements and lengthy approval processes.

Solution: Begin banking relationships early, ideally through introduction from established clients. Prepare comprehensive business documentation beyond minimum requirements. Consider working with international banks that have Greek branches, where existing relationships might streamline processes.

“We underestimated banking complexity,” admits Stefan, a Dutch entrepreneur. “Our approach of simultaneously applying at three different banks paid off – while two had extended delays, one approved our account within two weeks.”

Language Barriers

Challenge: While business registration platforms offer English options, many secondary procedures and local authority interactions remain Greek-language focused.

Solution: Budget for translation services beyond the initial setup phase. Consider Greek language courses for long-term operations. Employ bilingual staff in customer-facing or administrative roles from the outset.

Government Support and Incentives

Greece has implemented various programs to attract foreign investment and support business growth:

Development Law Incentives

The Greek Development Law (4887/2022) provides significant incentives for qualifying new investments:

• Cash Grants: Up to 50% of eligible expenses for qualifying projects in priority sectors
• Tax Exemptions: Income tax exemptions for profits related to the investment
• Leasing Subsidies: Support for equipment leasing costs
• Job Creation Subsidies: Wage support for new employment positions

Priority sectors receiving enhanced benefits include:

• Technology and innovation
• Agri-food and agri-tech
• Sustainable tourism development
• Renewable energy and green technologies
• Healthcare and wellness services

“The process for accessing development incentives requires careful preparation,” advises Georgios, an investment consultant. “Applications require detailed business plans with clear economic impact metrics. While the rewards are substantial, expect a thorough evaluation process lasting 5-8 months.”

European Union Funding

As an EU member, Greece provides access to considerable European funding programs:

• NSRF Programs: National Strategic Reference Framework funding targeting specific development priorities
• Horizon Europe: R&D funding for innovation-focused enterprises
• Cohesion Funds: Support for businesses in less developed regions
• Digital Transformation: Specific funding for technology implementation

These programs typically operate through competitive calls for proposals with specific submission windows and evaluation criteria.

Your Greek Business Journey: From Vision to Reality

Establishing a successful business in Greece combines strategic planning with cultural adaptation. As you move forward, consider this implementation roadmap:

1. Preliminary Market Assessment (2-3 months)
   • Conduct thorough market research specific to Greek consumer or business preferences
   • Establish connections with industry associations and potential partners
   • Evaluate location options with on-ground visits
2. Legal and Structural Foundation (1-2 months)
   • Select appropriate business structure based on growth plans
   • Engage legal and accounting professionals with foreign business experience
   • Prepare documentation for registration and banking processes
3. Operational Setup (2-3 months)
   • Secure appropriate business premises through lease or purchase
   • Establish banking relationships and financial systems
   • Develop hiring strategy, emphasizing bilingual capabilities for key positions
4. Market Entry Execution (Ongoing)
   • Implement localized marketing strategy addressing Greek market particularities
   • Build relationships with local suppliers and distribution channels
   • Establish financial monitoring systems adapted to Greek reporting requirements

The entrepreneurs who thrive in Greece are those who balance international best practices with adaptation to local business culture. Greece rewards patience and relationship-building – quick-win approaches that might work in other markets often struggle here.

As Eleni, who transitioned from corporate America to launching a successful Greek tourism technology company, reflects: “Success in the Greek business environment combines methodical planning with authentic connection. Our breakthrough moments came when we stopped operating as ‘foreign investors’ and became genuine participants in the local business community.”

What aspect of Greek business culture are you most curious to experience? The entrepreneurial landscape awaits those ready to embrace both its challenges and extraordinary opportunities.

Frequently Asked Questions

Can I establish a Greek business without visiting Greece in person?

While theoretically possible through power of attorney arrangements, practical reality makes at least one visit highly advisable. Initial bank account establishment, property evaluation, and relationship building with key partners typically require personal presence. Many entrepreneurs visit 2-3 times during the establishment phase, then manage certain aspects remotely after setup.

How does Greece’s business environment compare to other Mediterranean EU countries?

Greece offers lower operational costs than Spain, Italy or France, with average commercial rents 30-40% lower than comparable Mediterranean locations. Labor costs remain competitive while still accessing skilled EU workforce. Business formation is now comparable in complexity to other Southern European nations (significantly improved from a decade ago), though tax complexity remains higher than EU averages. The key competitive advantage is combining EU market access with costs closer to those found in Southeastern European non-EU countries.

What industries offer the strongest opportunities for foreign entrepreneurs in Greece?

The most promising sectors combine Greek advantages with growing markets. Tourism technology, sustainable agriculture/food production, renewable energy, specialized maritime services, and location-independent digital businesses show particularly strong potential. The Greek government provides enhanced incentives for these sectors, with streamlined processes and potential funding support. Businesses bridging Greek production with export markets also benefit from strong government backing and increasingly efficient logistics infrastructure.

Article reviewed by Alexandros Ioannidis, Senior Wealth Manager | Multi-Asset Portfolio Specialist | Building Customized Investment Solutions for High-Net-Worth Clients, on April 29, 2025