Good to know
Good to Know
- You do not need a Greek or EU local partner to own a company in Greece — 100% foreign ownership is standard, but non-EU founders who want to actually live in Greece while running the business separately need a residence/work permit, which is a different process from incorporating the company itself.
- The whole incorporation process runs through national online systems (GEMI, AADE), so it can genuinely be done remotely from Kalymnos or even before you arrive — there's no need to travel to Athens to file paperwork.
- Bank account opening is consistently the slowest and most unpredictable step in practice, often taking 2-4 weeks on its own due to KYC checks, even after GEMI registration is complete — budget extra time here.
- An IKE with the minimum €1 share capital is legally valid, but most banks and business partners will expect a more realistically funded company, so treat the €1 figure as a legal minimum, not a practical operating budget.
- For most solo digital nomads or consultants just testing out working from Kalymnos, starting as a sole proprietor (ατομική επιχείρηση) is simpler and cheaper than forming an IKE — you only move to a company structure once you have real liability exposure, plan to raise investment, or want corporate-style tax treatment.
- Don't incorporate an IKE purely to pay less tax than you would as a freelancer — Greek tax authorities have specific rules to claw back the tax difference if a company is formed just to dodge freelancer rules.
- Kalymnos does not get the reduced VAT rate that a handful of other Greek islands (Leros, Lesvos, Kos, Samos, Chios) currently have — standard 24% VAT applies to a business here.
- As a non-EU founder, budget real lead time: opening a sole proprietorship without already living in Greece is difficult, and even IKE formation typically needs a Greek AFM tax number, a local representative or power of attorney, and several weeks for bank account KYC checks.
- This covers the business/company-level tax picture only — your personal income tax residency situation (e.g. the 50% new-resident exemption, when you become a tax resident) is a separate topic covered elsewhere in this guide.
Corporate Tax
- SME Incentives
- Some deductions and incentives exist for smaller companies and R&D-heavy activity, including enhanced expense deductions in certain innovation categories.
- Dividend Withholding
- Distributed dividends from a Greek company are generally subject to a separate withholding tax on top of the 22% corporate rate; this is a company-level cost distinct from any personal tax residency question.
Standard Rate
- Rate Percent
- 22
- Applies To
- Net profits of capital companies (IKE, EPE, AE) and other legal entities registered in Greece.
- Applies To Sole Proprietors
- No
Freelancer Sole Proprietor Vs Company
Sole Proprietorship
- Taxation
- Business profits are not subject to a separate corporate tax; they are taxed as the owner's personal income on progressive individual rates, declared annually on the personal tax return (Form E1).
- Liability
- No separate legal personality — the owner and the business are the same legal entity, so personal assets are fully exposed to business debts with no liability shield.
- Greek Name
- Ατομική Επιχείρηση (Atomiki Epicheirisi)
- Recent Change
- The annual flat business-registration levy (Τέλος Επιτηδεύματος), which had reached up to roughly €650–€1,000/year, was abolished for freelancers and sole proprietors starting in 2025, though it still applies to legal entities like IKE companies.
- Minimum Capital
- None required.
- Foreign Eligibility
- EU citizens can register relatively easily; non-EU citizens generally need a residence permit that grants self-employment rights, and opening a sole proprietorship without already living in Greece is difficult in practice.
- Imputed Minimum Income Rule
- Under Law 5073/2023, tax authorities assume a freelancer earns at least what a national-minimum-wage employee would earn annually (approximately €11,620 for tax year 2024); tax can be assessed on this floor even if declared profit is lower. Authorities have also introduced rules to prevent freelancers from closing down and reopening as a single-member company purely to sidestep this rule.
- Description
- The default, fastest route for a solo freelancer/consultant.
Single Member Ike Or Full Company
- Formation
- Can be formed by a single person (Μονοπρόσωπη ΙΚΕ), and incorporation can largely be completed online through the Gov.gr / e-YMS business portal.
- Liability
- Shareholder liability is limited to the capital contributed to the company — a real liability shield versus the sole-proprietorship route.
- Greek Name
- Ιδιωτική Κεφαλαιουχική Εταιρεία (IKE) — Private Capital Company
- Minimum Capital
- As low as €1 in share capital, with contributions possible in cash, in-kind, or via personal guarantee.
- When It Makes Sense
- Better suited to a business that needs liability protection, plans to raise investment, or wants access to corporate-tax treatment rather than personal progressive rates — not simply as a way to pay less tax than a freelancer, since Greek authorities can claw back tax savings if a company is formed purely to dodge the freelancer imputed-income rule.
- Other Entity Types Available
- Beyond the IKE, foreigners can also use an EPE (older-style limited liability company with stricter governance, now less common than IKE), or an AE / Société Anonyme (minimum €25,000 share capital, board of directors, mandatory audits above revenue thresholds) if planning to raise institutional capital.
- Description
- The most commonly chosen entity type for foreign founders and startups in Greece, including single-owner setups.
Typical Cost
- Ongoing Monthly Social Security Efka Minimum
- €167
Minimum monthly EFKA contribution for a company director/legal representative once registered.
EPE Or Ae Notary And Legal Costs
- Low
- €2,000
- High
- €5,000
- Note
- Excludes the AE's €25,000 statutory capital, which is the founder's own money, not a fee.
Government Registration Fee Online Ike
- Low
- €18
- High
- €80
Realistic All In Cost Foreign Founder Ike
- Low
- €1,000
- High
- €2,500
- Note
- Includes lawyer/accountant fees for AFM procurement, translations, and filing assistance — most non-resident founders use a professional rather than filing solo.
Common Entity Types
IKE (Idiotiki Kefalaiouchiki Etaireia / Private Capital Company)
- Min Capital
- €1.00
- Notary Required
- No
- Description
- The most popular vehicle for foreign founders — single-member allowed, minimal formality, and can be formed fully online.
EPE (Limited Liability Company)
- Min Capital
- €4,500
- Notary Required
- Yes
- Description
- Middle-ground structure with stricter accounting/governance than IKE; notarization is typically required.
AE (Société Anonyme / Public Limited Company)
- Min Capital
- €25,000
- Notary Required
- Yes
- Description
- Used for larger operations; requires a board of directors and formal governance, with one quarter of capital paid in at incorporation.
VAT
- Standard Rate Percent
- 24
- Registration
- VAT registration is generally mandatory once turnover/activity thresholds are met, using the M2 form, and the AFM tax number becomes the VAT ID (prefixed 'EL').
- Small Business Exemption
- A small-business VAT exemption regime exists for sole proprietors with annual turnover not exceeding €10,000.
- Kalymnos Specific Note
- Kalymnos is not among the handful of Greek islands (Leros, Lesvos, Kos, Samos, Chios) that currently benefit from a 30% VAT reduction; a business based on Kalymnos charges the standard mainland VAT rates, not a discounted island rate.
Jurisdiction Note
Kalymnos operates under standard national Greek company and tax law — there is no island-specific business incorporation regime for Kalymnos itself. All figures below are the national Greek framework that applies to a business registered on Kalymnos.
Filing And Compliance Obligations
- Audits
- Mandatory statutory audits apply to AE companies once revenue thresholds are met; IKE/EPE audit obligations depend on size thresholds.
- Registry
- All commercial entities (IKE, EPE, AE, partnerships) must register and maintain their status with GEMI, the General Commercial Registry, which sits under the Ministry of Development and Investment.
- E Invoicing
- Invoices must be issued according to Independent Authority for Public Revenue (AADE) rules, numbered sequentially, and reported through the myDATA e-books platform; records must be kept for at least five years.
- Social Security
- The company's legal representative/director must be registered with EFKA (Greece's social security body), separate from any personal EFKA obligations of a sole proprietor.
- Ubo Declaration
- Company owners must declare Ultimate Beneficial Owners — anyone holding more than 25% of the company — as part of registration.
- Company Level Filings
- Capital companies face ongoing statutory obligations beyond a sole proprietorship, including annual general meetings and periodic GEMI filings, which add administrative cost compared to simply operating as a freelancer.
Core Steps
Core Steps
- Obtain a Greek Tax Identification Number (AFM) for each founder/director — non-EU citizens typically do this via a Power of Attorney to a local lawyer/accountant rather than in person.
- Appoint a local tax representative if not tax-resident in Greece, to handle communication with Greek tax authorities.
- Check and reserve the company name through the GEMI online portal.
- Draft the Articles of Association (in Greek); for an IKE using the standard model statute, notarization can be skipped, while EPE/AE generally require a notarial deed.
- Submit the registration application to GEMI, either online via the Gov.gr Business Portal/e-YMS one-stop-shop, in person at a GEMI office, or through a notary.
- Open a Greek corporate bank account and deposit any required share capital (as little as €1 for an IKE).
- Register for VAT and enroll in the myDATA e-invoicing system; company data is automatically forwarded to AADE for a VAT number.
- Register the company's legal representative/director with EFKA (social security), mandatory even for single-member IKEs if the director draws a salary.
- File Ultimate Beneficial Owner (UBO) information with the GEMI register, generally required within 30–60 days of incorporation.
- Non-EU founders intending to live in Greece must separately apply for a residence/work permit (e.g., investor or entrepreneur permit) — this runs in parallel with company formation, not as a prerequisite for the registration itself.
Official Links
Jurisdiction Note
Company incorporation in Greece is governed entirely at the national level through GEMI (General Commercial Registry) and AADE (tax authority) — there is no separate Kalymnos-specific business registry or municipal incorporation process. A founder based in Kalymnos uses the same national online system as someone incorporating in Athens.
Realistic Timeline
- EU Citizen Founder
- EU citizens generally move faster since they can often obtain the AFM without a residence permit prerequisite, commonly closer to the 3-6 week range for the whole setup.
- Gemi Registration Only
- For a standard IKE with documents prepared in advance, GEMI approval itself typically takes about 1 to 3 business days up to roughly 1-2 weeks.
- End To End For A Non EU Founder
- Once AFM acquisition via power of attorney, bank account opening (which alone can take 2-4 weeks due to KYC checks), and any visa/residence permit steps are factored in, the realistic end-to-end timeline extends to about 2 to 3 months.
Foreign Ownership And Local Partner Rules
- Details
- Foreigners can fully own a business in Greece, but non-EU citizens need to first get a visa or residence permit to live and operate in the country. No local Greek partner or shareholder is legally required for standard commercial entities.
- Local Partner Or Sponsor Required
- No
AI-generated estimateData refreshed July 2026
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Data last updated July 2026 · Verify anything important.