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Business Permits & Incorporation for Foreigners in Mykonos

Good to know

Good to Know

  • There is no local-partner or local-sponsor requirement in Greece — a non-EU founder can own 100% of a Mykonos-based company and be its sole director, but non-EU individuals who want to physically live in Greece and run the business day-to-day still need a residence/work permit separate from the company itself.
  • Getting your Greek tax number (AFM) is usually the real bottleneck, not the GEMI filing itself — GEMI/e-YMS processing can take just 1-3 business days once your AFM and documents are ready.
  • If you're not physically in Greece, you'll need a notarised, apostilled power of attorney to a Greek tax representative (lawyer or accountant) to get your AFM and complete much of the process remotely.
  • Choosing the IKE structure (vs. EPE or AE) is what keeps costs and timelines low for most solo founders/freelancers-turned-business-owners — it avoids the notary requirement and needs only €1 in capital.
  • Opening the actual business bank account is often the slowest practical step (1-3 weeks) due to KYC/AML checks, sometimes requiring a video call with the bank even after GEMI registration is complete.
  • There is no special Mykonos or island-specific tax break for foreign-owned businesses — the same national 22% corporate rate, 24% VAT, and filing rules that apply in Athens apply here.
  • For a solo digital-nomad-style consultant or service provider, starting as a sole proprietor (ατομική επιχείρηση) is generally the fastest, lowest-cost way to legally invoice clients from Greece; forming a company (IKE) only pays off once you have real liability exposure, plan to hire, or want to retain/reinvest profits at the lower 22% corporate rate rather than pulling everything out as personal income.
  • Greece's 'imputed income' (tekmarto) system can tax freelancers on a presumed minimum income even if actual earnings were lower — factor this into planning rather than assuming you'll only be taxed on declared profit.
  • New companies get a break on the advance-tax prepayment (roughly half the normal 80% advance) for their first three years, which meaningfully eases early cash flow.
  • Corporate tax returns and freelancer filings both go through the same national portal (myAADE/TAXISnet) — there's no separate local Mykonos tax office process for company registration itself, though GEMI registration and municipal formalities are still handled locally.

Corporate Tax Company

Registration Body
Companies register through GEMI (General Commercial Registry) via its digital one-stop-shop portal.

Capital Gains

Corporate Rate Percent
22
Notes
Corporate capital gains (including on property and share disposals) are taxed as ordinary business income at the 22% CIT rate.

VAT Standard Rate

Rate Percent
24
Notes
Standard VAT is 24%, among the highest in the EU. Note: reduced VAT applies on some other Greek islands (e.g. Leros, Lesvos, Kos, Samos, Chios) but this reduction has not been confirmed to apply to Mykonos.

Reduced Rates Percent

  • 13
  • 6

Filing And Payment

Penalties
Late filing fines range roughly €100–€500 depending on company size, plus interest of about 0.73% per month on unpaid tax.
Advance Tax
Companies must prepay 80% of the current year's estimated tax liability based on the prior year; newly established companies get this advance reduced to 40% (50% of the standard rate) for their first three years of operation.
Filing Deadline
Annual corporate tax return filed electronically via TAXISnet/myAADE by the last working day of the sixth month after fiscal year-end (end of June for calendar-year companies).
Payment Schedule
Tax due is paid in up to eight equal monthly installments.
Digital Bookkeeping
Companies must report accounting/invoice data on the myDATA electronic bookkeeping platform to AADE.

Dividend Withholding Tax

Rate Percent
5
Notes
Applies to distributions to both resident and non-resident shareholders, subject to treaty relief; the distributing company must withhold and remit it.

Standard Corporate Income Tax Rate

Rate Percent
22
Citation Text
Greece taxes companies at a flat 22% corporate income tax (CIT) rate on net profits — reduced from 24% in 2021.
Notes
Flat rate on net taxable profits for Greek-resident companies (IKE, EPE, AE, branches of foreign companies) and applies to worldwide income for residents, Greek-source income only for non-resident entities.

Minimum Share Capital By Entity Type

  • AE (Société Anonyme / Ανώνυμη Εταιρεία)
    Minimum Capital
    €25,000
    Notes
    The classic joint-stock structure, more formal governance requirements, generally used for larger operations.
  • Entity
    IKE (Private Capital Company / Ιδιωτική Κεφαλαιουχική Εταιρεία)
    Minimum Capital
    €1.00
    Notes
    No meaningful statutory minimum capital in practice — this is the most commonly used vehicle for foreign-owned SMEs and single-founder companies in Greece today, having largely superseded the older EPE form.

Freelancer Sole Proprietor Option

Liability
No legal separation between personal and business assets — the individual is personally liable for all business debts.
Advance Tax
An advance payment of 55% of the income tax attributable to business activity is due, reduced to 50% in the first year of activity.
Who It Suits
Solo foreign remote workers/freelancers who want the fastest, lowest-admin way to legally invoice and be tax-registered in Greece; no separate legal entity is created — the individual IS the business.
Structure Name
Atomiki Epicheirisi (ατομική επιχείρηση) — individual sole-trader/freelancer registration
Social Security
Self-employed individuals pay fixed monthly e-EFKA contributions based on a selected income category rather than a percentage of actual profit.
VAT Registration
Automatic upon registering as a sole proprietor if the activity is VAT-liable; a small-business exemption regime exists for annual turnover up to €10,000.
Eligibility For Foreigners
Foreign nationals must hold a residence/visa status that grants the right to conduct entrepreneurial activity in Greece (e.g. a freelance/self-employment residence permit or, for EU citizens, no permit needed) before registering.

Personal Income Tax On Profits

Structure
Progressive personal income tax scale, roughly 9% to 44%, applied to net business profit (profits are not taxed separately from other personal income under current rules).
Notes
Business expenses that are properly documented and booked are deductible from gross income before this scale applies.

Typical Cost

Ike Minimum Capital
€1.00
Gemi E Yms Registration Fee
€60

Realistic Total All In Cost With Professional Help

Amount USD Low
1140
Currency Local
EUR
Amount USD High
5700
Amount Local Low
1000
Amount Local High
5000
Notes
Range depends heavily on whether a notary is triggered, how many founders need an AFM/tax representative, translation and apostille costs, registered-office fees, and the level of legal/accounting support used. A bare-bones self-filed IKE can cost close to just the €60 GEMI fee plus AFM/translation costs; using a law/accounting firm for the full package (AFM procurement, translations, apostilles, registered office, bank introduction) typically lands in the €1,000-€5,000+ range.

Other Company Types

  • EPE (Limited Liability Company)
    Minimum Capital
    €4,800
    Notary Required
    Yes
    Notes
    Largely superseded by the IKE for new formations; notarial deed required.
  • AE (Société Anonyme / Public Limited Company)
    Minimum Capital
    €25,000
    Notary Required
    Yes
    Paid In At Incorporation
    €6,250
    Notes
    One quarter of the €25,000 minimum capital must be paid in at incorporation; suited to larger operations or planned public listings.

Step By Step Process

  • Step
    1
    Action
    Obtain a Greek Tax Identification Number (AFM) for each founder/director
    Detail
    Every shareholder and director needs an AFM before the company can be registered. EU nationals can often apply remotely via AADE's myAADElive video service. Non-EU nationals not physically in Greece must appoint a Greek tax representative (a lawyer or accountant) under a notarised, apostilled power of attorney to apply on their behalf at the local tax office (DOY).
    Typical Duration
    A few business days once documents are ready; longer if apostille/translation/legalisation of foreign documents is needed.
  • Reserve the company name
    Step
    2
    Detail
    Check and reserve the proposed company name through the GEMI (General Commercial Registry) online pre-check.
    Typical Duration
    Same day
  • Draft the Articles of Association (Καταστατικό)
    Step
    3
    Detail
    For an IKE, a standardized template can be used as a private document without a notary. AE formations, and EPE formations, generally require notarisation, as does any formation involving in-kind real-estate contributions.
    Typical Duration
    A few days to two weeks depending on complexity
  • File with GEMI via the e-YMS one-stop-shop
    Step
    4
    Detail
    Submit the statute, founder identification documents, and proof of a registered business address (lease or property deed) electronically through the Gov.gr business portal. Pay the registration fee and receive the GEMI registration number, at which point the company obtains legal personality.
    Typical Duration
    Roughly 1-3 business days for a clean IKE filing
  • Register for tax purposes with AADE
    Step
    5
    Detail
    The company automatically receives (or separately applies for) a corporate AFM and, where required, a VAT number, and must activate myDATA e-invoicing/e-books.
    Typical Duration
    1-2 business days after GEMI registration
  • Open a corporate bank account and deposit share capital
    Step
    6
    Detail
    Banks conduct their own KYC/AML checks and generally require apostilled identification documents; a video-call KYC session with the bank is sometimes required for non-resident founders.
    Typical Duration
    1-3 weeks
  • Register with EFKA (social security)
    Step
    7
    Detail
    The company's legal representative must be properly registered with the Greek social security system.
    Typical Duration
    A few days, usually in parallel with other steps
  • Obtain activity-specific licenses if applicable
    Step
    8
    Detail
    Certain sectors (e.g. food service/hospitality, which is common for Mykonos-based businesses) require additional permits, such as food-safety approval from the Hellenic Food Authority (EFET).
  • Non-EU founders only: secure a residence/work permit
    Step
    9
    Detail
    Non-EU nationals can own a Greek company from abroad, but to live in Greece or actively manage the business on the ground they need an appropriate visa/residence permit (e.g. the Type D national visa for business/investment activity).

Jurisdiction Note

Mykonos has no distinct municipal or island-specific business tax regime — it falls under standard Greek national tax law (Income Tax Code, Law 4172/2013) administered by the national tax authority (AADE). Nothing found in official sources suggests Mykonos or the South Aegean region offers preferential corporate tax treatment for foreign-owned businesses.

Other Recurring Obligations

Record Retention
Tax authorities can audit up to five open tax years; businesses should retain records for at least five years.
Transfer Pricing Documentation
Required annually if related-party transactions exceed €100,000 (turnover ≤ €5m) or €200,000 (turnover > €5m) — relevant mainly if the Mykonos entity has cross-border related-party dealings, e.g. with a foreign parent company.

Company Vs Freelancer Practical Comparison

Company Vs Freelancer Practical Comparison

  • A sole proprietorship is simpler and cheaper to set up and run (minimal bookkeeping, no minimum capital) but offers no liability shield and taxes profit at personal progressive rates up to 44%, plus exposure to the imputed-income minimum.
  • An IKE company is a distinct legal entity offering liability protection, a flat 22% corporate rate on retained/business profit, and only a 5% withholding tax on whatever is actually distributed as dividends — but requires more formal accounting, annual financial statements, and typically an accountant.
  • Greek tax authorities actively police freelancers who close down and reopen as a single-member company purely to dodge the imputed-income rules; incorporating should reflect genuine business need (liability risk, investors, scaling), not just a tax-avoidance motive.
  • Many owner-operators use a mixed salary/dividend extraction strategy from their own IKE to balance the 22% corporate rate against progressive personal rates on salary, since dividends are deductible at neither level in a way that offsets both — this optimization is complex enough that professional accounting advice is standard practice, not a luxury.

Jurisdiction Note

Company incorporation is governed entirely by Greek national law and the national GEMI/e-YMS system — there is no separate Mykonos-specific business registry or local permit regime. A founder based in Mykonos uses the same online national portals as a founder in Athens; the local Cyclades Chamber of Commerce can assist in person but is not a distinct legal pathway.

Realistic Timeline

Ae Or EPE With Notary
Generally longer than an IKE due to mandatory notarial deed and higher capital requirements; commonly quoted as 2-4 weeks end-to-end even for straightforward cases
Ike EU Founder Documents Ready
As little as 1-2 weeks end-to-end (AFM, GEMI filing, tax registration, bank account)
Ike Non EU Founder Owning Only Not Residing
Roughly 10 business days to a few weeks, mainly gated by AFM issuance via a tax representative and bank KYC turnaround
Non EU Founder Who Also Needs A Residence Permit
Approximately 2-3 months, since visa/residence permit processing (roughly 1-3 months) runs in addition to the company formation steps

Official Government Links

Local Partner Or Sponsor Mandate

Details
Greece does not require a local Greek partner, sponsor, or majority local shareholding for foreign-owned companies. Foreign investors, including non-EU nationals, can own 100% of a Greek company (IKE, EPE, or AE) in almost all sectors, and a non-resident can sit as the sole director. There is no mandatory Greek-resident director requirement for these capital companies in most cases, though one director or legal representative must be formally appointed and, in practice, having no Greek-resident contact can complicate bank account opening.
Required
No

Recommended Company Type For Foreigners

Why
The IKE is the most common and most foreigner-friendly Greek company form: it can be formed by a single person, requires only a minimal capital contribution, uses a standard template Articles of Association that avoids a notary in most cases, and files digitally through the GEMI one-stop-shop (e-YMS).
Name
IKE (Idiotiki Kefalaiouchiki Etaireia / Private Capital Company)
Minimum Capital
€1.00
Notary Required
No
Notes
A notarial act is only triggered if a partner contributes real estate or another specific legal requirement applies.
AI-generated estimateData refreshed July 2026

This section has no cited sources.

More About Mykonos

Data last updated July 2026 · Verify anything important.