Good to know
Good to Know
- The IKE (Private Capital Company) is by far the most common structure for foreign founders in Greece — it can be formed with just €1 in capital, needs no notary if you use the standard template, and allows a single foreign owner with no Greek/EU residency requirement.
- There is no legal requirement for a local Greek partner or sponsor to incorporate — 100% foreign ownership is permitted for most sectors.
- The registry filing itself is often the fastest part; opening a Greek corporate bank account (KYC/AML checks) is usually the real bottleneck for foreign founders, so start that process early and have apostilled ID and source-of-funds documents ready.
- Non-EU founders should obtain their Greek Tax Identification Number (AFM) well before trying to sign a lease, open a bank account, or file with GEMI — nothing else can proceed without it.
- If you're incorporating specifically in Thessaloniki, remember you'll enroll with the Thessaloniki Chamber of Commerce and Industry rather than the Athens Chamber referenced in many generic online guides — the national process itself is otherwise identical.
- An IKE (private capital company) can legally be formed with as little as €1 in capital, which is why it's the default recommendation for foreign-owned small businesses in Greece rather than the AE or EPE forms.
- There's no legal requirement for a Greek-resident director on an IKE/EPE/AE, but in practice several banks still ask for a local resident director or an in-person KYC visit before opening a business account — worth checking with your target bank before you incorporate.
- If you start as a freelancer/sole proprietor, be aware of Greece's presumptive (imputed) income rules: the tax office can assess a minimum taxable income even if you declare less, which catches some new arrivals off guard in year one.
- Both new companies and new sole proprietors get a reduced advance tax prepayment in their early years (companies: 40% instead of 80% for the first three years), which meaningfully softens first-year cash flow.
- Mandatory e-invoicing via the myDATA platform is being phased in through 2026 by business size — factor this into your choice of accountant/software regardless of which structure you pick.
Corporate Tax
- Exceptions
- Certain credit institutions that elected a deferred-tax-asset conversion regime are taxed at 29% instead of 22%.
- Capital Gains
- Corporate capital gains, including on property and share disposals, are treated as ordinary business income and taxed at the standard 22% rate.
- Foreign Ownership
- Foreign investors can own 100% of a Greek entity (IKE, EPE, or AE) in almost all sectors, with no requirement for a Greek shareholder. Banking, insurance, energy, defence, and media have sector-specific licensing rules.
- Loss Carryforward
- Tax losses may be carried forward for five fiscal years to offset future profits; Greece does not permit loss carry-back and does not operate a consolidated tax-group regime.
- Resident Director Requirement
- There is no legal requirement for a Greek-resident director, though one legal representative must be appointed, and banks may in practice require a local resident director or in-person KYC step to open a business bank account.
Other Withholding Taxes
- Interest Percent
- 15
- Royalties Percent
- 20
Dividend Withholding Tax
- Rate Percent
- 5
- Notes
- Domestic dividend withholding is generally 5%, subject to treaty review and EU parent-subsidiary rules for qualifying EU shareholders.
Standard Corporate Income Tax Rate
- Rate Percent
- 22
- Applies To
- AE (Société Anonyme), IKE (Private Capital Company), EPE (Ltd), and general/limited partnerships (OE/EE) that keep double-entry books.
- Notes
- The standard corporate income tax rate in Greece is 22%, applying uniformly to AE, IKE and EPE structures, as well as to branches of foreign companies. There is no reduced rate for small companies or startups at the corporate level.
Registration And Filing Obligations
- Annual Corporate Tax Return
- All companies file corporate tax returns electronically via TAXISnet (operated by AADE). The return is due by the last working day of the sixth month after year-end (end of June for calendar-year companies).
- E Invoicing
- Mandatory digital books and e-invoicing via the AADE myDATA platform, with phased mandatory B2B/B2G rollout during 2026 depending on business size.
- Processing Time
- Standard processing for a clean company filing runs roughly 3–10 business days through the GEMI digital one-stop shop, though non-EU shareholders without a Greek tax representative on file, or unusual share structures, can extend this.
- Registration Process
- Companies register through the General Commercial Registry (GEMI), typically via a digital one-stop-shop portal, then obtain a Tax Identification Number (AFM) from AADE and register for VAT and the myDATA e-invoicing platform.
- Tax Payment Schedule
- Corporate tax due is paid in up to eight equal monthly installments.
- Advance Tax Prepayment
- Businesses must prepay a percentage of the following year's income tax due: 80% of the prior year's liability for legal entities. New companies pay a reduced 40% (50% of the standard 80%) during their first three years of operation.
VAT
- Reduced Rates
- 13% on food, hotels, catering and medicines; a super-reduced 6% on books, newspapers, theatre tickets and electricity.
- Standard Rate Percent
- 24
- Small Business Exemption Threshold
- €10,000
- Notes
- A small-business exemption applies to taxpayers with turnover below the threshold in the prior calendar year, allowing them to skip VAT charging and filing (with no input deduction). VAT registration is otherwise mandatory for cross-border activity.
Registration Fees
- Range Low
- €60
- Range High
- €500
- Notes
- GEMI registration fees range depending on entity type.
Freelancer Sole Proprietor Vs Company
- Practical Takeaway
- For a foreigner testing the market with modest, simple income, the sole-proprietor route is faster and cheaper to set up but leaves you personally liable and taxed at progressive rates with presumptive-income risk. Once revenue or liability exposure grows, forming a single-member IKE trades extra bookkeeping/compliance overhead for limited liability and the flat 22% corporate rate.
Single Member Ike Company
- Tradeoffs
- Comes with mandatory double-entry accounting books, myDATA e-invoicing enrolment, and full corporate compliance (annual return, advance tax prepayment, potential accountant fees) that a sole proprietorship does not require — so it usually only pays off once income and liability exposure are high enough to justify the extra admin.
- Greek Term
- Μονοπρόσωπη ΙΚΕ
- Capital And Setup
- Requires no meaningful minimum capital (€1 is technically sufficient); GEMI filing for a clean IKE is typically processed in 1–3 business days once documents are ready.
- Extracting Profit
- Owners typically decide between salary (deductible at company level, taxed progressively at the individual level) and dividends (not deductible at company level, but taxed at a flat 5% withholding as final tax) — a distinct planning question from personal tax residency.
- Why Foreigners Use It
- A single-member IKE lets a foreign freelancer or small operator gain limited liability (liability capped at capital contributed) and shift from progressive personal income tax to the flat 22% corporate rate, plus broader deductible-expense categories.
Sole Proprietor Freelancer
- Greek Term
- Ατομική Επιχείρηση (atomiki epicheirisi)
- Tax Treatment
- Business profits are taxed as personal income on a progressive scale (roughly 9% up to €10,000, rising to 44% above €40,000, per 2025 brackets), not at the flat corporate rate — this is a business-structure distinction, separate from personal tax-residency rules.
- Legal Structure
- The individual and the business are the same legal entity — there is no separation between personal and business assets, meaning the freelancer carries unlimited personal liability for business debts.
- Social Security
- Self-employed professionals pay fixed monthly EFKA contributions based on selected income categories rather than a straight percentage of profit; a monthly contribution ceiling of €7,761.94 applies from January 2026.
- Registration Process
- Registration is completed online via myAADE (Form Δ211 for commencement of activity) and requires a registered business address in Greece; the freelancer must then register as a payer of social insurance contributions with e-EFKA by the 10th of the following month.
- Administrative Burden
- Lower setup cost and simpler bookkeeping (single-entry accounting permitted below certain thresholds) than a company, but full personal liability and no access to the flat corporate rate or dividend-planning options.
- Eligibility For Foreigners
- Foreign nationals must possess a visa or residence permit granting the right to conduct entrepreneurial/self-employed activity; non-EU nationals abroad typically register through a Greek tax representative.
- Presumptive Minimum Income
- Greece applies a presumptive/imputed income system (τεκμαρτό εισόδημα) for sole proprietors: the tax office may assess a minimum taxable income (based on the minimum wage, highest-paid employee salary, and a turnover benchmark, capped at €50,000/year) and tax that minimum if declared income falls below it.
Incorporation Process And Requirements
- Scope Note
- Company incorporation in Greece is governed nationally (GEMI / AADE), so the legal steps, entity types, capital rules, and timelines below apply identically whether the registered office is in Thessaloniki or elsewhere in Greece. The only city-specific element is which regional Chamber of Commerce and Industry the company enrolls with — in Thessaloniki this is the Thessaloniki Chamber of Commerce and Industry rather than the Athens Chamber cited in many generic guides.
Core Steps
- Obtain a Greek Tax Identification Number (AFM) — mandatory for every founder before any company transaction. EU nationals can typically apply remotely via AADE's online systems; non-EU nationals usually need a power of attorney to a Greek representative to process this without traveling.
- Choose the legal form (IKE is the default choice for most foreign founders).
- Reserve/check the company name through the GEMI online registry.
- Draft the Articles of Association (statute) — for an IKE this can be a private document using GEMI's standard template with no notary; AE formation and EPE/IKE formations involving in-kind (non-cash) contributions require a notarial deed.
- File the registration application (statute, founder ID documents, proof of a registered business address) electronically through the GEMI e-One-Stop-Shop (e-OSS) portal or in person via a notary/Chamber of Commerce/KEP office. GEMI issues a registration number and publishes the incorporation in the Government Gazette.
- Open a corporate bank account and deposit the share capital (as low as €1 for an IKE, €25,000 for an AE) — banks run their own KYC/AML checks independent of the registry timeline.
- Company data is automatically forwarded to AADE (tax authority), which issues the company's own AFM/VAT number.
- Register the legal representative (and any employees) with EFKA, Greece's social security fund.
- File the Ultimate Beneficial Owner (UBO) declaration with the GEMI beneficial-owner register (anyone holding more than 25%).
- Enroll with the relevant regional Chamber of Commerce and Industry — in Thessaloniki this is the Thessaloniki Chamber of Commerce and Industry — and pay the annual membership fee.
- Obtain any sector-specific licenses (e.g., food service, tourism, healthcare) from the relevant municipal or ministry office, if applicable.
Typical Costs
- Notary Fees Ae Or EPE
- €800
Only applies to AE, or EPE/IKE formations with in-kind contributions or bespoke articles; not required for a standard-template IKE. Ranges roughly €300–€2,000 depending on deed complexity.
- Gemi Document Filing Fee
- €10
- All In Lean Ike Setup Total
- €1,600
Approximate all-in cash outlay (excluding the €1 share capital) for a simple IKE with model articles, no notary, plus standard professional help; ranges roughly €1,000–€2,200.
- Legal Advisory Fees Typical Ike
- €1,500
Optional but common for foreign founders, covering KAD activity-code selection, AFM assistance, and bank KYC support; typically €1,000–€2,000.
- Ae Setup Total Including Capital
- €30,000
Approximate total cash commitment for an AE including the mandatory €25,000 paid-in capital plus notary/legal fees; ranges roughly €27,900–€32,300+.
- Registered Office Address Annual
- €300
Cost of a registered/virtual office address if not using owned/leased premises; some service providers quote considerably higher (up to roughly €1,100/year) — figures vary a lot by provider.
- Chamber Of Commerce Annual Membership
- €100
Paid to the relevant regional chamber (Thessaloniki Chamber of Commerce for a Thessaloniki-registered company).
- Gemi State Registration Fee Ike Online
- €18
Fee is reduced when filed through the online e-OSS portal; can rise to roughly €60–€80 for in-person/other filings.
Realistic Timeline
- Afm Tax Number
- 1–5 business days for EU nationals applying remotely; non-EU founders should allow 2–4 weeks lead time due to the power-of-attorney process.
- Name Reservation
- Same day via GEMI's online pre-check.
- Overall Ike EU Founder
- As little as 1–2 weeks in a best-case scenario; 2–4 weeks is a more typical realistic window once bank timelines are included.
- Overall Non EU Founder
- Approximately 2–3 months when a residence/work permit is also required to legally live and manage the business in Greece.
- Articles Of Association
- Same day to a few days for a standard-template IKE (no notary); notarization for AE/EPE adds time depending on notary availability and document complexity.
- Gemi Registration Filing
- Typically 1–3 business days online once documentation is complete.
- Bank Account And Capital Deposit
- 1–3 weeks, sometimes longer — bank KYC/AML checks are the most common real-world bottleneck, not the registry filing itself.
Common Entity Types
IKE (Private Capital Company / Idiotiki Kefalaiouchiki Etaireia)
- Min Capital
- €1.00
- Notes
- The dominant vehicle for foreign founders and solo entrepreneurs. Single-member IKE permitted. Statute can be a private document using a standard template (no notary) via the GEMI/e-OSS one-stop system, which removes notary cost and delay. No Greek/EU residency required for members or the administrator — only a Greek tax number (AFM).
EPE (Limited Liability Company / Etaireia Periorismenis Efthynis)
- Min Capital
- €4,500
- Notes
- Largely superseded by the IKE among foreign founders; heavier formalities, at least half of capital must be paid in cash at incorporation.
AE (Société Anonyme / Anonymi Etaireia)
- Min Capital
- €25,000
- Notes
- Used for larger ventures, companies seeking outside investors, or eventual stock-exchange listing. Requires a board of directors and, commonly, a notarial deed.
Sole Proprietorship (Atomiki Epicheirisi)
- Notes
- Simplest structure for freelancers, but the founder has unlimited personal liability for business debts.
Branch Office of a Foreign Company
- Notes
- Not a separate legal entity — an extension of the parent company via GEMI; no new share capital needed, but the parent remains fully liable for the branch's debts.
Local Partner Or Sponsor Requirement
- Detail
- Foreign investors in Greece can own all of the company's shares; there is no requirement for a local partner. A local resident manager is not legally required either, though many foreign founders use a local representative for banking and day-to-day administration convenience.
- Status
- None required
- EU Vs Non EU
- EU/EEA citizens enjoy freedom of establishment and can incorporate, manage, and work for a Greek company without a visa or work permit. Non-EU citizens can own 100% of a Greek company, but if they intend to personally live in Greece and actively manage/work in the business, they generally need a business/investor/entrepreneur visa or residence permit; owning the entity remotely without relocating does not require this.
AI-generated estimateData refreshed July 2026
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Data last updated July 2026 · Verify anything important.