Foreign Ownership Rules and Restrictions for Companies in Greece

Introduction

Greece continues to attract foreign investors looking for an entry point into the EU market, a strategic Mediterranean location, and sectors such as shipping, tourism, energy and technology. For most businesses, company formation in Greece is straightforward and permits 100% foreign ownership in the vast majority of sectors. However, there are industry-specific restrictions, screening mechanisms and administrative requirements that foreign investors must understand before starting business registration. This article explains the foreign ownership rules and practical steps for company formation in Greece, covering corporate structure choices, costs, timelines (typical setup time 4–6 weeks), required documents, tax considerations and regulatory restrictions.

Why Greece is attractive for business

• EU membership and access to the Single Market make Greece a gateway to Europe, North Africa and the Eastern Mediterranean.
• Strategic port infrastructure (Piraeus, Thessaloniki) and a globally significant shipping cluster support logistics and maritime services.
• Competitive corporate taxation (corporate income tax is 22% as of mid‑2024) and targeted investment incentives in priority sectors.
• Growing technology and startup ecosystem, coupled with government initiatives to simplify business registration and attract foreign direct investment.
• Relatively low operating costs compared with many Western European capitals, availability of skilled professionals and quality of life that supports expatriate executives.

Overview of corporate structures commonly used by foreign investors

Choosing the right corporate structure affects liability, governance, capital requirements, taxation and compliance. Common forms include:

I.K.E. — Private Company (Idiotiki Kefalaiouchiki Etaireia)

• Popular for startups and small-to-medium businesses.
• Extremely flexible corporate governance and shareholder arrangements.
• Minimum share capital: 1 EUR (practically no statutory minimum).
• Limited liability for shareholders.

E.P.E. — Limited Liability Company (Eteria Periorismenis Efthinis)

• Suitable for SMEs requiring a more formal structure.
• Minimum share capital: typically around 4,500 EUR.
• Managed by one or more managers; shareholders’ liability limited to capital contributions.

A.E. — Public Limited Company (Anonymi Etaireia)

• Appropriate for larger enterprises or companies planning public offerings.
• Minimum share capital: typically around 25,000 EUR.
• Stricter corporate governance and disclosure obligations.

Branch office and representative office

• Non-resident corporations can establish branches to conduct business in Greece; branches are generally treated as extensions of the foreign parent.
• Representative offices may conduct market research and promotion but cannot carry out commercial transactions.

Sole trader / Individual enterprise

• Natural persons may operate as sole proprietors; registration is simpler but no limited liability protection.

Foreign ownership rules and sectoral restrictions

• In general, Greece allows 100% foreign ownership of companies. There are no blanket restrictions based solely on nationality.
• Restrictions and additional requirements may apply in specific sectors:
  • Defence, energy, telecommunications, transport, critical infrastructure and certain utilities may be subject to national security screening and special licensing.
  • Real estate: acquisition of agricultural land, property near national borders or on certain islands may require government permission; restrictions or reciprocity rules can apply to non‑EU nationals.
  • Regulated professions (lawyers, doctors, architects, notaries, accountants) typically require local qualifications, professional registrations or EU-recognized credentials.
  • Shipping: ship registration and certain maritime activities are regulated; while foreign investors can own shipping companies, flagging and specific subsidies/benefits are subject to maritime law requirements.
• Foreign Direct Investment (FDI) screening: Greece operates an FDI screening mechanism to review investments in strategic sectors. Non‑EU/EEA investors may face more scrutiny; the government can recommend mitigation measures or block transactions on national security grounds.

Practical company formation steps (high-level)

1. Choose the appropriate corporate structure (I.K.E., E.P.E., A.E., branch).
2. Verify company name availability and reserve the trade name via the General Commercial Registry (GEMI).
3. Prepare and sign the company’s constitutive documents (articles of association or memorandum and articles), usually notarized.
4. Obtain Greek tax identification numbers (AFM) for the company and for foreign shareholders/directors as needed.
5. Register the company with the General Commercial Registry (GEMI) and enroll for VAT at the competent tax office where applicable.
6. Open a corporate bank account and deposit minimum share capital if required.
7. Register with social security authorities (EFKA) if hiring employees and obtain any sectoral licenses or permits.
8. Complete statutory filings and publish required announcements (as applicable).

Documents typically required

For natural-person shareholders and directors:

• Valid passport or national ID card.
• Proof of residential address (utility bill or bank statement).
• Greek tax identification number (AFM) — obtainable via a local tax office or through a representative.
• Power of attorney if using a local lawyer or service provider to act on your behalf; notarial/legalisation (apostille) and certified translation may be required for non‑Greek documents.

For corporate (foreign) shareholders:

• Certificate of incorporation or equivalent, showing company name, registration number and legal form (recently dated).
• Certificate of good standing / extract from the commercial register.
• Board resolution authorizing the formation of the Greek company and appointment of the legal representative.
• Documents must usually be legalized (apostille) and translated into Greek by a certified translator.

For company registration:

• Articles of association / memorandum and articles of incorporation (translated and notarized as necessary).
• Bank certificate proving deposit of share capital (if applicable).
• Signed forms for GEMI registration, VAT registration and social security registration.
• Licenses or permits for regulated activities.

Note: Electronic filing is increasingly used. A Greek digital signature and Taxisnet credentials for the company representative streamline the process.

Costs (approximate, indicative)

Costs vary by complexity, provider and sector. Typical ranges for a standard private company formation (I.K.E. or E.P.E.):

• Service provider / legal fees: €800–€3,000 (depends on inclusion of notary, translations, power of attorney, tax registration).
• Notary fees: €200–€1,000 (depend on capital and complexity).
• GEMI registration and official fees: €100–€500.
• Bank charges and capital deposit: minimal banking fees; share capital as required (I.K.E. can be €1).
• Apostille, translations and document legalization: €50–€500 depending on volume.
• Ongoing compliance (annual accounts audit for larger entities, tax filings): budget for accounting and audit fees – typically €1,000+ annually for small companies; larger companies pay more.

These are indicative figures. Specific regulatory licences or sectoral approvals will incur additional fees and possible bond/security requirements.

Timelines

• Typical setup time: 4–6 weeks (this assumes all documents are in order, local representative availability and no additional sectoral licensing).
• Faster registration (1–2 weeks) is possible when using experienced local counsel, digital signatures, and if no additional permits are required.
• If sectoral licences, FDI screening, land permissions or other administrative approvals are necessary, the process can extend to 8–12 weeks or longer.

Taxation and ongoing compliance

• Corporate income tax: 22% (as of mid‑2024). Note that tax rates and incentives can change — verify current rates at the time of formation.
• VAT: standard VAT rate is 24%, with reduced rates for certain goods and services.
• Employers and employees must be registered with EFKA for social security contributions; employer contribution rates vary by sector and social categories.
• Transfer pricing, thin capitalization rules and anti‑abuse measures apply; cross‑border transactions should be documented and compliant.
• Non‑resident shareholders may face withholding taxes on dividends, interest or royalties; treaty relief and EU directives may apply depending on jurisdiction.

Always consult a local tax advisor for specifics and to optimize tax position legally.

Special sectors and additional permissions

• Energy, utilities and telecoms: licensing regimes and ERC (Regulatory Authority) oversight; environmental permits may apply.
• Defence and critical infrastructure: possible restrictions or screening; minority ownership thresholds may trigger review.
• Real estate development: planning approvals, building permits and sometimes environmental impact assessments.
• Maritime and shipping: registry rules for Greek flagging and tax benefits specific to shipping companies.

Practical tips for foreign investors

• Use a local law firm or corporate services provider to navigate notarization, translations, apostilles and GEMI filings — this significantly reduces delays.
• Obtain AFM and Taxisnet access early for the company representative to enable online filings and VAT registration.
• Plan for FDI screening if your investment is in a strategically sensitive sector; start screening considerations early.
• If you are a non‑EU national and plan to reside in Greece, consider residence permit requirements — company ownership alone may not confer residency.
• Keep corporate records up to date, prepare timely annual accounts and file tax returns to avoid fines.

Conclusion

Greece offers a generally welcoming environment for foreign company formation, with 100% foreign ownership allowed in most sectors, attractive location advantages and a corporate tax rate of 22% (current at mid‑2024). Standard company registration processes are well established, and the typical setup time is 4–6 weeks when all documentation is prepared and no special licenses are required. However, investors should be aware of sector-specific restrictions, FDI screening mechanisms and the administrative steps required for tax, social security and licensing compliance. Engaging local corporate, tax and legal advisors early will help ensure a smooth business registration and a compliant, efficient start to operations in Greece.