Greece has managed to overcome financial and economic difficulties and successfully avoid default. There is every reason to believe that difficult times are over: GDP growth in the country in 2021 amounted to 2.2%. Despite the fact that according to Doing Business data, at the end of 2021, Greece was ranked 72nd in the world (out of 190) in terms of ease of doing business, business in Greece continues to be profitable. Russians wishing to start their own business here should take a closer look at the local business opportunities.
Business in Greece: features and benefits
The positive developments in the Greek economy are also affecting business confidence. Recently, there has been an increase in foreign investment. So, in 2021, the demand for Greek real estate from foreigners returned to the pre-crisis level, and the volume of purchases exceeded half a billion euros.
Among the advantages that may interest both beginners and experienced businessmen, it is worth mentioning:
- equal rights for Greek citizens and foreigners in business matters, the presence of a clear legislative framework that prevents officials from interfering in the activities of entrepreneurs;
- availability of tax incentives for foreigners wishing to invest in the Greek economy - exemption from internal taxes, customs payments;
- advantages of business immigration: residence permit for a businessman and his family members, free movement within the Schengen area, "Golden Visa" for investments in Greece;
- existence of agreements on avoidance of double taxation with 57 countries;
- a high standard of living with lower living costs compared to most EU countries;
- affordable prices in the real estate market;
- government support - the creation of an EquiFund to help entrepreneurs, the operation of business incubators - iQbility, Corallia, Orange Grove, EGG, etc.
For Russians who have decided to do business in the country, it will be useful to learn about some of the features of the Greek business culture:
- Entrepreneurship in Greece, as a rule, is of a family type - family members, relatives, brother-in-law, and friends are involved in the company. Informal connections can ensure loyalty to the authorities, and in transactions, recommendations from acquaintances can play a decisive role.
- The dependence of the effectiveness of management on the personal qualities of the manager - diplomacy, honesty, will, the ability to appeal to the best qualities of the Greeks.
- Greek businessmen are looking for an excuse to avoid taxes. The constant change in tax legislation is accompanied by attempts to drive loopholes in the legislation for tax evasion.
- Gender equality and lack of sexual harassment at work. Women here excel in their careers thanks to their qualifications and business qualities.
- Informality in dress and manners.
When planning a business in Greece, you should also consider the disadvantages. This, first of all, is not always transparent legislation, the presence of bureaucratic red tape and manifestations of corruption (although, in this case, a company can be opened quickly and easily). Extortion of bribes is rare, but an envelope with money often helps to speed up the resolution of the issue. Foreign policy reasons - territorial disputes and tensions with Turkey - also serve as a negative factor.
Profitable business in Greece for foreigners
Tourism is the whale that helped Greece out of the crisis and boosts business development. With the onset of the crisis, the flow of tourists to the country continued to increase. In 2021, more than 30 million tourists visited it, which brought the country more than 50 billion euros. The tourist service sector is currently the most in demand in the country.
Profitable directions remain:
- hotel business in Greece. Despite increased competition, demand continues to outstrip supply. The costs will pay off within two to three years;
- the sphere of public catering - opening of taverns, cafes, restaurants;
- leisure activities - sports sections (diving, beach soccer, etc.), children's playgrounds, sea excursions, nightclubs;
- service industry - cosmetology, retail, shoe / clothing repair shops, marine transport services.
There are certain prospects in Greece for agriculture - the production and processing of olives, grapes, citrus fruits, as well as the construction and construction of sea vessels.
Best Regions in Greece for Business
Business activities in Greece must take into account the regional factor. Business in Athens, Thessaloniki, as well as in popular tourist centers - in Olympia, on the Halkidiki peninsula, the islands of Kos, Rhodes, Crete, where there is real competition, may require large financial investments, the introduction of innovative ideas, adherence to European patterns and standards.
In the provinces - in the interior of Greece, in the Peloponnese, Corfu, small islands of the Greek archipelago, where the way of life is more traditional and the rhythm is more measured, the usual types of agribusiness may be more profitable.
For types of business not related to tourism, such as IT-technologies, the cities of Piraeus, Corinth, Patras, where life is cheaper than in the capital, will be a good option.
Choosing a legal form for business
The size of taxes paid will also depend on the choice of the form of doing business.
- For large business, the most acceptable form of entrepreneurship is an open joint stock company with limited liability - Ανώνυμη Εταιρεία (AE). For registration, capital in the amount of 60 thousand euros is required (fully paid within 2 months from the date of registration of the company), at least two owners, the presence of a director and the main body - a shareholders' meeting.
- For small and medium-sized businesses, a private limited liability company is more relevant - Εταιρεία Περιορισμένης Ευθύνης (EPE). The authorized capital is 18 thousand euros for two owners and 5 thousand euros for one. Half of the amount must be paid in cash at check-in.
- Foreigners have the opportunity to register a private capital company - Ιδιωτική Κεφαλαιουχική Εταιρία (ΙΚΕ). The share capital is limited to 1 euro. Responsibility is commensurate with the contributions of partners.
- For operating foreign companies, it is more profitable to open a branch, representative office of their company or partnership: general partnership with unlimited liability - Omorythmos Eteria (OE) or limited partnership - Eterorythmos Eteria (EE).
How to register a business in Greece for a foreigner
There is no particular problem in how to open a business in Greece for a foreigner. Having decided on the form of doing business, a number of actions should be taken:
- obtain confirmation from the tax authorities that there are no debts (Form A-7);
- choose a unique company name and legal address;
- register the name with the Greek Chamber of Commerce;
- open a bank account and deposit the authorized capital on it;
- prepare constituent documents;
- certify all official papers with a notary;
- create and certify a seal;
- submit a package of papers and an application for registration of the company in the General Electronic Commercial Register (GEMI).
After registration, the documents must be submitted to the local court and the national printing house for publication in the press of material about the new company. Then you should make an appointment at the insurance institution for the self-employed. If there are employees, register them with the Employment Personnel Organization of Greece.
From 22.07. 2021, by the decision of the Ministry of Justice and Finance, it is possible to register Greek companies ΙΚΕ, OE, EE in Greece via the Internet. To do this, go to the eyms.businessportal.gr website.
One of the founders must be authenticated through electronic identification.
After completing the identification, you need:
- select "Create a new company";
- enter the name of the company and all the necessary data manually;
- receive an electronic confirmation of the creation of the company and the acceptance by the system of all entered data.
- pay the fee;
- apply for a recommendation.
After the company data is uploaded and verified, the articles of association will be automatically prepared, the new company will receive a taxpayer number (AFM), and its data will be entered into the social tax system (EFKA). If a discrepancy in the submitted data is established, the applicant is given 5 days to correct the documents, otherwise the application will be rejected. By the end of 2021, it is planned to create forms for the registration of AE.
Terms, cost and paper required for registration
The entire procedure for registering a new company in Greece can take from 10 to 12 days. The transition to registration via the Internet can reduce the time to 2 days. Registration fee includes:
- up to 200 euros - registration costs;
- 50 euros - production of a seal;
- 150 euros - registration at EFKA.
It is also required to pay a registration fee in the amount of 1% of the authorized capital, pay for the services of a translator (all documents are drawn up in Greek), a notary, a lawyer.
The package of papers that you may need to register a company includes:
- certificate of absence of tax arrears;
- the charter of the company - indicating the form of doing business, name, duration of existence, purpose, size of the authorized capital, type of shares, etc .;
- a power of attorney in the name of a trustee in Greece, if the foreigner's place of residence is abroad;
- the decision of the founders to register the company;
- identity cards of the founders;
- lease / purchase / sale agreement for a real estate object under a legal address;
- business plan and permits from the relevant institutions (ministries of health, development).
For Russians wishing to manage a company locally, they will need not a Schengen business visa to Greece, but a national D visa.
Buying a ready-made business
Foreign businessmen who do not want to engage in venture business or start from scratch can purchase a ready-made business in Greece. You can find a suitable option on the Internet, for example, at housage.com/Greece/business/. There are no special difficulties in this case.
The purchase / sale of a business in Greece must take place in the presence of a notary and lawyers of both parties. To complete the transaction, participants must provide:
- passport, certificate of absence of tax arrears - the seller;
- passport, identification number, permission from the Greek Ministry of Defense when buying an object in the border zone (Lesvos, Samos) - the buyer.
The local tax office determines the value of the property - in order to buy a business in Greece, a foreigner must pay 11% of its value as a transfer fee. When buying an object more expensive than 200 thousand euros - 1.5% of the price as an annual property tax. In addition, the buyer pays from 9 to 13% of the turnover tax, another 2% goes to the notary.
Banks in Greece
Banks in Greece have long followed liberal policies. During the crisis years, EU assistance helped maintain the stability of the Greek banking system (115 banks) and successfully restructure. The banks of Greece have tightened control over the movement of capital, introduced strict criteria for assessing the risks of lending, a thorough check of the legitimacy of clients' capital. Today it is almost impossible for a foreigner to take out a mortgage in a Greek bank.
The most trusted in the country are 4 large Greek banks:
- Bank of Greece SA - Central Bank of Greece;
- National Bank of Greece SA - the oldest bank in the country;
- Piraeus Bank SA;
- Alpha Bank.
The international bank EFG Eurobank Ergasias also has a strong position in the country. Internet banking is developed in Greece - almost everywhere you can pay with a bank card.
Taxation system in Greece
Taxation in Greece continues to be one of the most opaque in Europe.
- From 01.01. 2021 corporate income tax is 26%, and for credit institutions - 29%.
- Progressive income taxes can range from 22 to 45%.
- The VAT rate is 24%.
In 2021, Greece lifted the low VAT regime for 27 islands. At the same time, in a number of industries, benefits have been preserved: hotel business - up to 13%, pharmaceuticals and theater - 6%, shipping companies - 0%.
The country is pursuing a line of toughening tax control. Thus, foreign clients will have to pay tax (0.15%) on exchange sales of securities.
It is important for Russian entrepreneurs to know that the Convention for the avoidance of double taxation was signed between the Russian Federation and Greece on 20.12.2007.
Opportunities for business emigration to Greece
Business emigration to Greece for Russians is possible when opening a business in Greece, the status of a financially independent person and investing in residential real estate.
Owning a profitable company with a good business plan, as well as an income of at least 2 thousand euros per month, gives the right to provide a residence permit for 2 years (with an extension of 3 years) with the prospect of permanent residence, and after 7 years of residence in the country - for Greek passport.
The purchase of real estate in the amount of 250 thousand euros or more entitles you to the Golden Visa and guarantees that a businessman and his family members will receive a residence permit for 5 years at once. Compulsory knowledge of the Greek language is not required.
Instead of a conclusion
Business in Greece for Russians continues to remain attractive for a number of reasons, among which are tax benefits for foreign businessmen, low prices and rental rates for real estate, an annual increase in the influx of tourists to Greece and the development of tourist business, the prospect of obtaining permanent residence in an EU country.
Despite some drawbacks (bureaucracy, non-transparency of taxation), recently, under the influence of the EU, positive changes have been taking place in the country in matters of business registration and banking, which makes doing business in Greece more comfortable and safe.
