If you’re a foreign entrepreneur or investor planning to set up a company in Greece, it’s essential to understand how corporate taxation works — including company types, tax rates, filing obligations, and dividend distributions.
This guide explains the Greek corporate tax system for foreign-owned businesses and how Borderless Lawyers helps you stay compliant, minimize tax liability, and run your business legally in Greece.
🏢 Common Company Structures for Foreigners in Greece
Foreign individuals and companies can register businesses in Greece as:
| Type | Greek Name | Description |
|---|---|---|
| Private Company | IKE | Most popular, flexible, low capital |
| Limited Liability Company | EPE | Traditional form, less common today |
| Single-Member IKE | Μονοπρόσωπη ΙΚΕ | Ideal for solo entrepreneurs |
| Branch of Foreign Company | Υποκατάστημα | Requires parent company abroad |
| SA (Corporation) | AE | For large operations, requires board |
✅ IKE is the most common choice for foreign founders — fast setup, low costs, flexible management.
💰 Corporate Tax Rates in Greece
| Tax Type | Rate | Notes |
|---|---|---|
| Corporate income tax | 22% | On net annual profits |
| Dividend withholding tax | 5% | On distributions to shareholders |
| Capital gains tax | Depends | Typically 15–22% |
| VAT (standard) | 24% | Reduced rates for some goods/services |
| Social security (employer share) | ~22–25% | On employee gross salaries |
| Real estate transfer tax | 3.09% | If the company owns/buys property |
⚠️ Profits are taxed when earned, and again when distributed (dividends). Tax planning is key.
🧾 Filing & Compliance Obligations
Greek companies must:
✅ Keep proper Greek accounting records
✅ Register with the AADE (Greek tax authority)
✅ File monthly VAT returns (if VAT registered)
✅ File annual corporate income tax return (Form N)
✅ File payroll & social security reports if employing staff
✅ Submit financial statements to the GEMI (Company Registry)
Deadlines and audits are strict — penalties apply for late or incorrect filings.
📈 Example: Tax Breakdown for a Foreign-Owned IKE
A U.S. citizen opens an IKE in Greece offering marketing services.
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Gross revenue: €300,000
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Operating costs: €150,000
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Net profit: €150,000
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Corporate tax (22%): €33,000
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Remaining profit: €117,000
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Dividend to owner: €100,000
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Dividend tax (5%): €5,000
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Total tax paid: €38,000
→ Effective tax rate ~25.3%
We can advise on DTTs, foreign tax credits, and reinvestment strategies.
🔍 How Are Foreign Owners Taxed?
Foreign shareholders:
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Pay 5% dividend withholding tax in Greece
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May also be taxed in their home country — subject to DTT relief
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Can benefit from tax exemptions or foreign tax credits depending on treaties
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Must provide tax residency certificates to claim treaty benefits
✅ We help you avoid double taxation and stay compliant in both jurisdictions.
🧾 VAT in Greece (ΦΠΑ)
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Standard rate: 24%
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Reduced: 13% or 6% (e.g., food, books, medicine)
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Registration required for most businesses
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Monthly filings mandatory once registered
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Intra-EU transactions must be reported (VIES system)
Borderless Lawyers registers your business for VAT, prepares monthly returns, and ensures correct invoicing.
💼 Hiring Employees in Greece
If your Greek company hires staff, you must:
✅ Register with EFKA (social security)
✅ Withhold income tax and social contributions
✅ Submit monthly payroll filings
✅ Comply with local employment law
Social contributions range from 22% to 25% of gross salary (employer’s share).
We manage HR compliance, contracts, and payroll setup.
🧾 Deductible Business Expenses
To lower your corporate tax liability, your company can deduct:
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Rent and office costs
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Salaries and insurance
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Professional services (accounting, legal)
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Business travel and vehicle expenses
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Technology and software
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Depreciation on assets
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Utilities and communications
📌 All expenses must be properly documented and invoiced under Greek standards.
🧑⚖️ How Borderless Lawyers Helps Foreign-Owned Companies
We provide:
✅ Company formation (IKE, AE, branches)
✅ VAT and payroll registration
✅ Ongoing bookkeeping and tax filing
✅ Annual income tax filing (Form N)
✅ Dividend tax and repatriation planning
✅ POA-based remote setup
✅ Cross-border tax coordination with your home country
Whether you operate a small IKE or a large enterprise, we keep your business compliant and tax-efficient.
❗ Common Mistakes to Avoid
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❌ Using a non-resident accountant with no Greek experience
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❌ Failing to register for VAT or social security
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❌ Paying dividends without proper withholding
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❌ Ignoring double taxation treaties
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❌ Missing filing deadlines or underreporting income
✅ Our legal team ensures correct filings, on time — every time.
❓ FAQ – Corporate Tax in Greece
Q: Can I run a Greek company from abroad?
A: Yes, you can be a foreign director or shareholder. We can handle the setup via Power of Attorney.
Q: Is there a minimum capital for a company?
A: Yes — IKE can start from €1, though banks often require more to open accounts.
Q: Do I need a local accountant?
A: Yes — Greek law requires a licensed accountant for corporate filings. We work with experienced tax partners.
🇬🇷 Ready to Open a Company in Greece?
Doing business in Greece as a foreigner is possible — with the right tax planning and legal setup.
👉 Contact Borderless Lawyers for full company formation, tax compliance, and ongoing legal support.