If you’re a foreign company planning to do business in Greece, you have two main options:
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Set up a subsidiary (Greek company with foreign ownership)
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Open a branch of your existing foreign company
Both are legally recognized, but each comes with different implications for tax, liability, accounting, and legal control.
🏢 What Is a Subsidiary in Greece?
A subsidiary is a locally incorporated company — typically an IKE (private company) or AE (public limited company) — owned partly or wholly by a foreign parent.
✅ It is a separate legal entity under Greek law.
🌐 What Is a Branch in Greece?
A branch (υποκατάστημα) is an extension of your foreign company registered with Greek authorities to operate locally.
✅ It is not a separate legal entity, but must comply with Greek tax and labor laws.
📊 Subsidiary vs Branch – Key Differences
| Feature | Subsidiary | Branch |
|---|---|---|
| Legal form | IKE, AE, etc. | Foreign company extension |
| Legal entity | Separate | Not separate |
| Liability | Limited to Greek company | Parent company liable |
| Corporate tax | 22% | 22% |
| VAT & AFM | New Greek numbers | Uses parent VAT (converted locally) |
| Capital | Minimum €1 (IKE) | No capital required |
| Governance | Local director & bylaws | Controlled by parent |
| Reporting | Full Greek compliance | Full Greek compliance |
| Ideal for | Long-term presence | Testing or supporting office |
✅ Advantages of a Subsidiary
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Separate liability from parent
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Easier to get residence/work permits for directors
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Flexible corporate structure (IKE/AE)
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Better suited for hiring Greek staff
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Can sign contracts independently
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May benefit from startup or SME tax breaks
📌 Most foreign entrepreneurs choose subsidiaries for long-term operations.
🔄 Advantages of a Branch
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Simpler governance — no new shareholders or bylaws
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Faster to register in some cases
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Keeps ownership and profits under parent
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Useful for liaison offices, support centers, or project-based contracts
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Less administrative overhead — no AGM, no share capital
⚠️ Branches cannot engage in all types of regulated business (e.g., some financial services).
🧾 Tax Treatment – Subsidiary vs Branch
| Tax Issue | Subsidiary | Branch |
|---|---|---|
| Corporate income tax | 22% | 22% |
| Dividend tax | 5% WHT | Usually not applicable (profits go to HQ) |
| Audit requirements | Yes, if AE or large IKE | Yes |
| VAT & accounting | Full myDATA + TaxisNet | Same |
| Tax treaty benefits | Yes | Yes |
| Profit repatriation | Dividends | Direct transfer |
📝 Legal Setup – What’s Involved?
Subsidiary:
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Choose structure (IKE/AE)
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Draft bylaws and founding act
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Appoint Greek resident representative
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Register with GEMI, AADE, EFKA
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Open Greek bank account
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Obtain Greek AFM, VAT, EIN
Branch:
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Parent company resolution
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Legal translation of bylaws, incorporation docs
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Appoint local representative
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File with GEMI and AADE
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No share capital needed
📌 Both require a Greek-speaking lawyer or notary — we handle this via POA.
📍 When Should You Choose a Subsidiary?
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Long-term business activity in Greece
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Local hiring, payroll, and office setup
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Need for a separate liability shield
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Plan to sell or attract investors later
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Prefer full flexibility in management
📍 When Should You Choose a Branch?
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Limited Greek operations (e.g., support services)
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Test market entry before full expansion
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Serve a single client/project in Greece
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Want to simplify tax structure
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Parent company assumes full responsibility
👩💼 Example: UAE Logistics Firm Expands to Greece
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Option A: Registers a branch in Piraeus to support port operations
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Option B: Forms an IKE subsidiary to offer customs clearance and hire locals
We advised them to start with a branch and convert to a subsidiary later once operations grew.
🔄 Can I Convert Between Branch and Subsidiary?
Yes — with legal and tax restructuring:
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A branch can be closed and replaced by a new subsidiary
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A subsidiary can transfer assets to the parent, then close
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We advise on exit tax, VAT deregistration, and liquidation if needed
🧑⚖️ How Borderless Lawyers Helps
✅ Compare structures based on your goals
✅ Register subsidiary or branch (remotely)
✅ Draft and translate legal docs
✅ Appoint local representative
✅ Handle GEMI + tax registration
✅ Set up accounting and payroll
✅ Manage annual compliance
📌 Full-service support for foreign companies entering Greece.
❓ FAQ – Branch vs Subsidiary in Greece
Q: Can I open a branch without Greek staff?
A: Yes — but you must appoint a local tax/legal representative.
Q: Will my branch be taxed twice?
A: No, tax treaties apply to avoid double taxation on branch profits.
Q: Which is faster to open?
A: A branch is slightly faster, but both take about 2–4 weeks with proper documents.
🚀 Ready to Expand Your Business to Greece?
Whether you’re testing the market or building a lasting presence, Borderless Lawyers helps you choose the right structure — and handle every step legally and efficiently.
👉 Contact us to open your branch or subsidiary in Greece — remotely, securely, and strategically.