Business immigration to Greece doesn’t lose its relevance. In particular, foreigners, both from developed European countries and from post-Soviet space, seek to buy a business in Greece or create a new company there. The Greek authorities don’t impose special restrictions on foreign entrepreneurs willing to invest in the Greek economy.

Greece has a comfortable climate, good geographical location in the south of Europe, access to four seas, beautiful architecture and a lot of historical monuments. Universities of Greece are famous for their ancient traditions and the quality of education; and their diplomas will help to work in Greece and other countries.

In 2017 the unemployment rate in Greece is 21.7%, yet every fifth working person is a foreigner. Labor migrants work mostly in agriculture and at other unskilled jobs. The main trading partners of Greece are Italy, Germany and Turkey: about 25% of Greek exports go there.

How to start a business in Greece

Present economic difficulties influence a favorable investment climate in the country. Nevertheless, experienced entrepreneurs find ways to make most effective investments in some sectors of the Greek economy.

What business can you open in Greece?

First of all, pay attention to tourism, agriculture, food industry, energy, construction, retail trade and medicine, in particular to the pharmaceutical sector. When searching for a region with business possibilities in Greece, it isn’t worthwhile to focus on the capital: in Athens the level of competition is high enough. More opportunities can provide cities like Thessaloniki, Piraeus, Patras or the island of Crete.

In 2017 the population of Greece is about 10.8 million people. Though the official language is Greek, English is also quite common in business environment. About 73% of all employees work in the service sector, up to 15% work in industry and another 12% are employed in agriculture. Average wage is 1.092 Euros. A business culture in Greece isn’t much different from other European countries. Plenty of attention is paid to personal and family relationships.

If you have intentions to manage a company directly on Greek territory and are Russian citizen, you need a long-term visa (type D), which allows to stay for more than 3 moths. A tourist visa gives right to stay up to 90 days, and a violation of the deadline will be fined up to € 1.2 thousand.

A good business plan, job creation and profitable activities of the company will allow a foreign entrepreneur to obtain a residence permit in Greece for a period of up to 5 years, after which it’s possible to obtain permanent residence right and later Greek citizenship.

Nota bene: a purchase of real estate in Greece for more then 250 thousand Euros gives automatically right to a residence permit.

Stages of business registration in Greece

1. Receipt in a tax authority of a special form, showing the absence of debt for tax liabilities, which allows you to start the registration of a company. The procedure is free and done online.
2. Registration of the company in the Chamber of Commerce and Industry of Greece. The following requirements must be fulfilled:
   • a unique name for the firm was chosen;
   • an account is opened with a Greek bank for which the minimum amount of the authorized capital is paid;
   • the constituent documents certified by a notary are prepared;
   • a certified seal has been created;
   • registration of a legal address;
   • information about the owners;
   • information about the direction of the company’s activities.

The whole procedure takes up to 10 days. Also, the above mentioned documentation is sent to the local court, which assigns the registration number, and to the national printing house, to publish information about the new company in a local newspaper.

3. Registration of employees in the employment agency of Greece is made in just one day online and free of charge.
4. Insurance registration as a self employed in Greece. It’s done during the day.

Business entities in Greece

The choice of the most suitable entity in Greece is one the important stages in planning of business. We consider below the most popular in Greece business entities.

Public limited company (AE)

It’s suitable for conducting a large business in Greece with a minimum required capital of 60 thousand Euros. The liability of owners, who must be at least two (individuals or legal entities), is limited to deposits. The management of the company is carried out by the board of directors, and the main decision-making body is a meeting of shareholders.

Private limited liability company (EPE)

It’s ideal for opening a small or medium-scale business in Greece. The authorized capital must be at least 18 thousand Euros. As a rule at least two owners are registered, who are responsible for company’s obligations with its deposit. Even one person is sometimes sufficient to open EPE. In this case it is fixed in the company name, and the authorized capital can be 5 thousand Euros. Management is carried out by a general meeting.

In addition to the above two forms of entities, foreign businessmen can engage in individual entrepreneurial activities in Greece or open a partnership, a branch and a representative office of a foreign company.

Taxes in Greece in 2017

The Greek tax system is characterized by opacity and relative unattractiveness for foreign investors. Unfortunately, the rates of some taxes are increasing every year. This is largely due to the requirements of international institutions that provide loans to the Greek government.

Rates of major taxes in Greece in 2017

Corporate income tax rate is 29 %;

VAT: the basic rate is 24 %, and reduced rates are 13 % (hotel service, products for people with disabilities) and 6 % (pharmaceutical products, theater performances).

Dividends – 10%;

Income tax is based on progressive sliding scale with rates from 22 % to 48 %.

Property tax rate is between 0 and 2 %, depending on the value of the object.

Business visa for Greece

A ready-made business in Greece or a creation of a new one requires a foreign entrepreneur to periodically visit the country, and it’s better to move to Greece for permanent residence. Typically, businessmen make out long-term or business visas to Greece, allowing stay in the country for up to one year with the right to obtain a residence permit. To do this, you need to submit a request with a full set of required documents to the Greek Consulate.

Documents for business visa to Greece in 2017

1. Correctly filled in Greek or English application form for entry visa to Greece.
2. A foreign passport with minimum two blank pages, issued not later than the last 10 years and valid for at least 3 moths after the expiry of the visa.
3. One color photo of the passport sample, made within the last 6 months.
4. Certificate of criminal record.
5. Medical insurance valid for the duration of the visa.
6. Certificate from a medical institution providing the absence of serious illnesses.
7. Documentary evidence of business ownership in Greece or the official invitation of business partners.
8. Receipt for payment of the visa fee, if required.

Depending on the aims of the travel, Greek diplomatic staff may require additional information from visitor, who must appear in person at the Greek Consulate. The collection of his biometric data (fingerprints and color photos) is also required: it’s necessary for the registration of a residence permit.

December 2017

The text was prepared using an article published on the website hochusvalit.com/biznes