Do Foreign-Owned Companies Pay Tax in Greece?

Yes — once you register a company in Greece, you become subject to Greek corporate tax law, regardless of the owner’s nationality.

Whether you form an IKE, AE, or branch, understanding your corporate tax obligations is key to staying compliant and avoiding penalties.

This article breaks down what foreign entrepreneurs need to know about Greek company taxes.

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📊 Corporate Income Tax in Greece

📌 Greek companies are taxed on worldwide income, unless an international tax treaty applies.

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🧾 Value-Added Tax (VAT)

✅ All companies must issue legal VAT invoices and file monthly VAT returns if registered.

You may voluntarily register for VAT earlier to deduct input tax or if you trade with the EU.

🧑‍💼 Borderless Lawyers handles VAT registration, invoicing systems, and monthly returns.

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💼 Key Monthly Tax Obligations

All returns are filed through TaxisNet, Greece’s digital tax platform.

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📅 Annual Tax Obligations

📌 Annual tax returns are due between April and June, depending on your fiscal year.

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🧑‍💼 Example: Canadian-Owned IKE in Athens

Liam, a Canadian founder, formed an IKE through Borderless Lawyers. His obligations:

• Registers for VAT in month 1

• Files monthly VAT and EFKA (he hires 2 employees)

• Declares €50,000 profit for year 1 → pays €11,000 corporate tax

• Distributes €10,000 in dividends → pays €500 in WHT

We handle all filings through his Greek accountant and maintain full compliance via myDATA and TaxisNet.

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📄 Other Taxes Foreign Companies Must Know

⚖️ We advise on tax structuring to minimize exposure across these areas.

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🌍 International Tax Treaties & Double Taxation

Greece has tax treaties with over 50 countries, including:

• 🇺🇸 United States

• 🇨🇦 Canada

• 🇬🇧 United Kingdom

• 🇦🇺 Australia

• 🇦🇪 UAE

• 🇩🇪 Germany

• 🇫🇷 France

These treaties prevent double taxation on income and dividends.

✅ We analyze your home country’s treaty to optimize your setup.

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💡 Can You Reduce Your Taxes in Greece?

Yes — legal tax optimization may include:

• Deducting valid business expenses

• Structuring dividends vs salary

• Choosing the right VAT regime (normal vs simplified)

• Timing asset purchases and depreciation

• Using startup tax incentives or small business exemptions

📌 We work with certified tax accountants to advise foreign clients year-round.

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❗ Penalties for Non-Compliance

• ❌ Late VAT return: €100–€500 per month

• ❌ Inaccurate corporate tax: % penalty on unpaid amount

• ❌ Failure to file in myDATA: triggers audit

• ❌ Unregistered dividend: 20% flat tax

• ❌ No Greek accountant: not legally allowed for foreign-owned entities

We ensure full compliance + audit defense from day one.

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🧑‍⚖️ How Borderless Lawyers Helps

✅ Company formation with correct tax setup
✅ AFM, EIN, and VAT registration
✅ Accountant onboarding
✅ Monthly and annual tax filings
✅ Dividend declarations
✅ Tax treaty analysis
✅ Audit support and legal defense

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❓ FAQ – Taxes for Greek Companies Owned by Foreigners

Q: Do I need to pay taxes if my company has no income yet?
A: Yes — you must still submit zero returns (VAT, E3, etc.) monthly/annually.

Q: Do I pay tax in both Greece and my home country?
A: Usually not — thanks to tax treaties. Ask us for personalized analysis.

Q: Can I pay myself tax-free from my Greek company?
A: No — salaries and dividends are both taxed. But we help you reduce the effective rate legally.

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📈 Ready to Launch a Tax-Compliant Business in Greece?

From registration to annual filings, Borderless Lawyers ensures you meet every tax requirement — with full legal support for foreign founders.

👉 Contact us to set up your Greek company and manage its taxes the right way.