Doing Business in Greece: A Legal Guide for Foreign Investors and International Companies
Key Legal, Corporate and Regulatory Considerations for Establishing and Operating a Business in Greece
Greece has become an increasingly attractive destination for foreign investment. Its strategic location at the crossroads of Europe, Asia and Africa, membership in the European Union and Eurozone, growing technology sector, tourism industry and logistics infrastructure continue to attract international businesses across a wide range of sectors.
Whether the objective is establishing a subsidiary, acquiring an existing business, investing in real estate, launching a technology venture or expanding commercial operations into the Greek market, understanding the legal and regulatory environment is essential.
This guide provides an overview of the principal legal considerations for foreign investors and companies doing business in Greece.
Why Invest in Greece?
Greece offers several advantages for international businesses, including:
- Membership in the European Union and Eurozone;
- Access to the European single market;
- Strategic geographic location;
- Strong tourism and hospitality sectors;
- Growing technology and innovation ecosystem;
- Expanding renewable energy market;
- Developing logistics and transportation infrastructure;
- Highly educated workforce.
In recent years, Greece has also undertaken significant reforms aimed at improving the business environment and attracting foreign investment.
Can Foreigners Own Businesses in Greece?
Yes.
Foreign individuals and foreign companies may generally establish and own businesses in Greece without requiring a local partner.
Most sectors are fully open to foreign investment.
However, certain regulated industries may require:
- licensing;
- regulatory approval;
- sector-specific authorisations;
- compliance with professional qualification requirements.
Foreign investors should therefore assess sector-specific regulations before commencing operations.
Choosing the Right Business Structure
One of the first decisions concerns the legal form of the business.
Common structures include:
Private Company (I.K.E.)
The Private Company (Ιδιωτική Κεφαλαιουχική Εταιρεία – I.K.E.) is one of the most popular vehicles for small and medium-sized businesses.
Advantages include:
- flexibility;
- limited liability;
- relatively simple corporate governance;
- low establishment costs.
It is frequently used by startups, service providers and foreign-owned subsidiaries.
Limited Liability Company (E.P.E.)
Although less common than in previous decades, the Limited Liability Company (Ε.Π.Ε.) remains available for certain business activities.
Société Anonyme (A.E.)
The Société Anonyme (Ανώνυμη Εταιρεία – A.E.) is generally preferred for:
- larger investments;
- institutional investors;
- regulated activities;
- businesses seeking external financing;
- complex corporate structures.
A.E. companies are governed primarily by Law 4548/2018.
Branch Office
Foreign companies may also establish a branch in Greece rather than incorporating a separate legal entity.
The appropriate structure depends on:
- tax considerations;
- liability concerns;
- operational requirements;
- long-term business objectives.
Company Formation in Greece
The incorporation process is generally straightforward.
Typical steps include:
- selecting the corporate structure;
- preparing constitutional documents;
- registration with the General Commercial Registry (GEMI);
- obtaining a tax registration number;
- registration with social security authorities where necessary;
- opening corporate bank accounts.
The process may often be completed within a relatively short timeframe, depending on the complexity of the structure.
Corporate Governance and Compliance
Businesses operating in Greece should maintain appropriate governance and compliance systems.
Depending on the size and nature of the business, this may include:
- board procedures;
- internal controls;
- compliance policies;
- anti-corruption procedures;
- whistleblowing mechanisms;
- anti-money laundering controls.
Governance has become increasingly important for investors, lenders and regulators alike.
Employment Law Considerations
Employers in Greece must comply with a comprehensive labour law framework.
Important issues include:
- employment contracts;
- working hours;
- minimum wage requirements;
- annual leave;
- collective labour agreements;
- termination procedures;
- social security obligations.
Employment law compliance should be addressed from the outset of any investment.
Tax Considerations
Tax planning is an essential component of any business strategy.
Foreign investors should consider:
- corporate income taxation;
- VAT obligations;
- withholding taxes;
- transfer pricing rules;
- permanent establishment issues;
- dividend distributions.
The optimal structure depends on the investor’s jurisdiction, business model and investment objectives.
Specialised tax advice is generally recommended before implementation.
Real Estate and Commercial Premises
Many businesses require commercial premises, logistics facilities or operational infrastructure.
Before acquiring or leasing property, investors should conduct:
- legal due diligence;
- planning and zoning reviews;
- environmental assessments where appropriate;
- title verification.
Property-related issues often become significant in manufacturing, logistics, tourism and hospitality projects.
Regulated Industries
Certain sectors require specific licences or regulatory approvals.
Examples include:
- financial services;
- payment services;
- insurance;
- healthcare;
- pharmaceuticals;
- telecommunications;
- energy;
- gaming;
- transportation.
Investors entering regulated sectors should assess licensing requirements at an early stage.
Anti-Money Laundering Compliance
Businesses operating in Greece increasingly encounter anti-money laundering obligations.
Particular attention should be given to:
- beneficial ownership requirements;
- customer due diligence procedures;
- record-keeping obligations;
- suspicious transaction reporting.
AML compliance has become especially important for financial institutions, investment firms, real estate professionals and other regulated entities.
Anti-Corruption and Business Ethics
International businesses operating in Greece should ensure compliance with:
- Greek anti-corruption legislation;
- the UK Bribery Act;
- the U.S. Foreign Corrupt Practices Act (FCPA);
- internal corporate compliance policies.
Particular care should be taken regarding:
- public procurement;
- interactions with public officials;
- third-party intermediaries;
- gifts and hospitality policies.
Commercial Contracts
Well-drafted contracts remain one of the most effective risk management tools.
Businesses should ensure that key agreements properly address:
- governing law;
- jurisdiction;
- dispute resolution mechanisms;
- limitation of liability;
- termination rights;
- confidentiality obligations.
Cross-border businesses often benefit from reviewing contractual frameworks before entering the Greek market.
Dispute Resolution
Commercial disputes in Greece may be resolved through:
- litigation before Greek courts;
- mediation;
- domestic arbitration;
- international arbitration.
The most appropriate mechanism depends on the nature of the business and the parties involved.
Dispute resolution clauses should be carefully negotiated during contract drafting.
Acquiring an Existing Greek Business
Many foreign investors enter the Greek market through acquisitions rather than greenfield investments.
Acquisition due diligence typically includes review of:
- corporate records;
- employment matters;
- litigation risks;
- tax liabilities;
- regulatory compliance;
- real estate holdings;
- intellectual property rights.
A comprehensive due diligence process is essential to identifying hidden liabilities.
Common Mistakes Made by Foreign Investors
Underestimating Due Diligence
Legal and regulatory issues should be identified before investment decisions are finalised.
Failing to Consider Tax Structuring
Tax considerations should be integrated into the investment structure from the outset.
Ignoring Compliance Requirements
Compliance obligations continue to expand across many sectors.
Using Inadequate Contracts
Poor contractual drafting frequently leads to avoidable disputes.
Delaying Legal Advice
Early legal involvement often prevents costly problems later.
Why Local Legal Advice Matters
Although Greece offers significant opportunities for foreign investors, successful market entry requires an understanding of:
- corporate law;
- regulatory requirements;
- taxation;
- employment law;
- compliance obligations;
- commercial practices.
Early legal guidance can significantly reduce risk and facilitate a smoother investment process.
Conclusion
Greece offers a dynamic environment for foreign investors seeking access to the European market, strategic geographic positioning and opportunities across a variety of sectors. Whether establishing a new company, acquiring an existing business or expanding international operations, careful planning and legal structuring are essential.
By addressing corporate, regulatory, tax and compliance issues at the outset, businesses can minimise risk and create a solid foundation for long-term success in the Greek market.
Frequently Asked Questions
Can a foreigner own 100% of a Greek company?
Yes. In most sectors, foreign investors may fully own Greek companies without requiring a local shareholder.
What is the most common business structure in Greece?
The I.K.E. (Private Company) and A.E. (Société Anonyme) are among the most commonly used structures.
How long does it take to establish a company?
The timeframe depends on the complexity of the structure, but incorporation can often be completed relatively quickly.
Do I need a Greek partner?
Generally no. Most business sectors are open to full foreign ownership.
Can foreign companies buy real estate in Greece?
Yes, subject to certain restrictions in designated border areas and other specific circumstances.
About the Authors
Karydas – Fouskarinis & Associates advises foreign investors, entrepreneurs, multinational corporations and family businesses on company formation, corporate governance, mergers and acquisitions, regulatory compliance, commercial contracts, real estate transactions and cross-border investments in Greece. The firm regularly assists international clients in establishing and expanding business operations throughout Greece.