Corporate Taxation in Greece: Essential Guide

Published on September 30, 2025 and written by Cyril Jarnias

Greece, with its rapidly recovering economy and recent tax reforms, is attracting more and more foreign entrepreneurs. This article will guide you through the complexities of Greek business taxation, enabling you to make informed decisions for your operations. From corporate tax to filing obligations and double taxation agreements, we’ll cover all essential aspects for successfully establishing your business in Greece.

The Greek Tax Landscape: Fertile Ground for Businesses

Greece has significantly improved its tax environment in recent years, making it more attractive to foreign investors. The country has implemented reforms aimed at simplifying the tax system and reducing the overall tax burden on businesses.

Corporate tax is one of the pillars of business taxation in Greece. Since 2025, the corporate profit tax rate has been set at 22%, positioning Greece competitively compared to the European average. This rate applies to all types of companies, whether public limited companies (SA), private limited companies (LLC), or other legal forms.

In addition to corporate tax, Greek businesses are subject to other important taxes:

• Value Added Tax (VAT): The standard rate is 24%, with reduced rates of 13% and 6% for certain goods and services.
• Social security contributions: Employers must pay social security contributions for their employees, representing approximately 24.81% of gross salary.
• Property tax (ENFIA): It applies to real estate properties owned by the company.

It’s important to note that Greece also offers tax incentives for certain types of investments, particularly in innovation and new technology sectors. For example, research and development expenses can benefit from tax deductions of up to 200% of incurred costs.

Registering with Greek Tax Authorities: Key Steps to Start Legally

Tax registration is a crucial step for any business wishing to operate in Greece. The process has been simplified in recent years, but it remains important to understand the required procedures.

The first step is to obtain a Greek tax identification number, called AFM (Αριθμός Φορολογικού Μητρώου). This number is essential for all transactions with the Greek tax administration. To obtain it, you’ll need to visit the local tax office (DOY – Δημόσια Οικονομική Υπηρεσία) with the following documents:

• Your company’s articles of association
• Identification of the legal representative
• Proof of company address in Greece
• Properly completed M3 form (available from the tax administration)

Once the AFM is obtained, you’ll need to register with the relevant chamber of commerce and the social security organization (EFKA – Ενιαίος Φορέας Κοινωνικής Ασφάλισης) if you plan to hire employees.

It’s also crucial to register for VAT if your annual turnover exceeds 10,000 euros. This registration will allow you to charge VAT to your customers and reclaim it on your purchases.

An important point to note is the need to appoint a tax representative if you’re a foreign company without physical presence in Greece. This representative will be responsible for your tax obligations with Greek authorities.

Tax Obligations: A Schedule to Strictly Follow

Once your business is registered, it’s crucial to comply with the tax obligations imposed by Greek law. Failure to meet these obligations can result in significant financial penalties.

Corporate tax return is one of the main annual obligations. It must be filed within six months following the end of the fiscal year, which generally coincides with the calendar year in Greece. Tax payment is made in several installments throughout the year.

Companies subject to VAT must submit monthly or quarterly VAT returns, depending on their turnover. These returns must be accompanied by payment of the due VAT.

Withholding tax is another important obligation for employers. Taxes on salaries and social security contributions must be deducted monthly and paid to the competent authorities.

Additionally, Greek companies are required to maintain accounting records compliant with Greek and international standards. Accounting books must be kept up to date and retained for at least 5 years.

A specific aspect in Greece is the obligation to submit a “summary table of clients-suppliers” (MYF – Μηνιαία Υποβολή Φορολογικών Στοιχείων). This document, detailing all company transactions, must be submitted monthly electronically.

Finally, it’s important to note that Greece has implemented a mandatory electronic invoicing system since 2024. All companies must now issue and receive electronic invoices through the Greek tax administration’s myDATA platform.

Double Taxation Agreements: An Asset for International Expansion

Greece has concluded double taxation agreements with many countries, making it an interesting base for companies with international operations. These agreements aim to prevent income from being taxed twice, once in the source country of the income and once in the beneficiary’s country of residence.

To date, Greece has signed tax treaties with more than 50 countries, covering most major world economies. Among important partners are:

• European Union countries
• United States
• China
• Russia
• Canada
• Australia

These agreements generally cover income and wealth taxes, and may include specific provisions on dividends, interest, and royalties.

A particularly interesting aspect of these conventions is the reduction of withholding tax rates on cross-border payments. For example, the withholding tax rate on dividends paid to a foreign parent company can be reduced to 5% or even 0% in some cases, instead of the standard 10% rate.

It’s important to note that to benefit from these conventions, companies generally need to provide a tax residence certificate issued by the tax authorities of their home country.

Greece has also adopted OECD recommendations on Base Erosion and Profit Shifting (BEPS). This means companies must be able to demonstrate the economic substance of their operations to benefit from tax treaty advantages.

Greece vs. Offshore Jurisdictions: A Strategic Choice for Entrepreneurs

Although Greece is not traditionally considered an offshore jurisdiction, it nevertheless offers interesting tax benefits that deserve comparison with more classic offshore destinations.

One of Greece’s main assets is its political and economic stability, reinforced by its membership in the European Union and the eurozone. Unlike some offshore jurisdictions that may face international scrutiny, Greece offers a legal and tax framework recognized and respected worldwide.

The 22% corporate tax rate in Greece is certainly higher than in some tax havens, but remains competitive compared to many European countries. Moreover, Greece offers specific tax benefits that can, in some cases, rival offshore jurisdictions:

• A special tax regime for “non-doms” that allows wealthy individuals to pay a flat amount of 100,000 euros per year on their foreign income
• Tax incentives for strategic investments, potentially including full corporate tax exemption for certain projects
• An advantageous tax regime for holding companies, with exemption from capital gains on subsidiary disposals

Compared to offshore jurisdictions like Cyprus or Malta, Greece offers the advantage of a larger domestic market and a more diversified economy. It also benefits from better international reputation, which can be an important asset for companies concerned about their image.

A crucial point to consider is compliance with international standards. Greece has adopted all European directives on combating tax evasion and actively participates in automatic exchange of tax information. This offers significant legal security to companies, while avoiding reputational risks associated with some offshore jurisdictions.

Finally, Greece’s strategic geographical position, at the crossroads of Europe, Africa, and the Middle East, makes it an ideal base for companies seeking to expand in these regions.

Conclusion: Greece, A Wise Choice for Your International Tax Strategy

Corporate taxation in Greece offers an attractive framework for international entrepreneurs and investors. With its competitive tax rate, targeted tax incentives, and extensive network of tax treaties, Greece positions itself as a destination of choice for companies seeking to optimize their tax structure while benefiting from the stability and credibility of an EU member country.

Recent reforms aimed at simplifying administrative procedures and digitalizing interactions with the tax administration demonstrate the country’s commitment to creating a business-friendly environment. However, as with any tax system, it’s crucial to understand the rules and strictly comply with filing obligations.

To fully leverage the opportunities offered by the Greek tax system, it’s recommended to engage local experts who can guide you through procedures and help optimize your tax strategy according to your specific objectives.