How to Open a Business in Greece in 2024

Greece, with its growing economy, has been making significant strides in attracting foreign investors and entrepreneurs. But in starting any entrepreneurial endeavor, there must be thorough preparation as well as paperwork—primarily getting the Greek tax ID (AFM) and opening a local bank account. But what if the legalities become too overwhelming? There's honestly no need to worry, since we've put together this guide to help you through the business incorporation process.

If you're planning to go solo and considering freelancing in Greece, you'll need to know how to register as a freelancer and the ins and outs of insurance in Greece, including what EFKA is.

Understanding the Business Landscape in Greece

When you're dipping your toes into the Greek market, it's pretty important to catch the vibe of how businesses operate. Now, let's run through some key stuff you need to know about starting a business in Greece.

GDP Growth

• Greece's GDP growth rebounded strongly post-pandemic. In 2021, the economy grew by around 8.3%, and while growth moderated, it remained positive in subsequent years, with estimated growth rates of 5.2% in 2022 and 3.5% in 2023.

Tourism in Greece

• In 2022, tourism in Greece surged, with approximately 27 million visitors in 2022, a significant increase from around 15 million in 2021. The trend continued into 2023, with arrivals exceeding 30 million. Total tourism revenue reached €18 billion in 2022, up from €10 billion in 2021, and was projected to exceed €20 billion the following year.

Foreign Direct Investment (FDI)

• FDI inflows increased significantly, reaching €5 billion in 2022, up from €3.2 billion in 2021. In 2023, FDI continued to rise, surpassing €6 billion. Greece received approximately €30.5 billion from the EU Recovery and Resilience Facility, with funds allocated to infrastructure, digital transformation, and green energy projects.

Unemployment Rate

• The unemployment rate dropped from 15.8% in 2021 to 12.5% in 2023, reflecting improved labor market conditions and job creation across various sectors.

Infrastructure Development

• Investment in transport infrastructure, including road and rail projects, increased by 15% annually from 2021 to 2023, enhancing connectivity and logistics capabilities.

Key Industry Performance

• Exports of agricultural products, such as olive oil and wine, grew by 12% annually between 2021 and 2023, driven by increasing demand for high-quality Greek products in international markets.
• The number of tech startups in Greece grew by approximately 25% annually, supported by government initiatives, incubators, and accelerators.

These statistics illustrate the significant strides Greece has made in various economic areas between 2021 and 2024, showcasing growing opportunities to start your business in Greece.

The Different Type of Business Entities in Greece

When starting your entrepreneurial journey in a foreign country, picking the right type of business entity is an important first step.

Here's a handy breakdown to help entrepreneurs begin their business endeavors:

• Sole Proprietorship: Ideal for those freelancing in Greece. It involves less paperwork and generally simpler tax-wise – but remember, you must read up on the current taxation laws in Greece, or get an accountant to file your taxes correctly, to avoid overpaying for them.
• Eterorithmi Etaireia (EE): A Greek limited partnership is established by a minimum of two investors, known as partners, and does not require any initial capital. In this arrangement, one partner must be a limited partner, who has limited liability for the company's debts and does not have any management responsibilities. Additionally, there must be at least one general partner who is responsible for managing the company.
• Idiotiki Kefalaiouxiki Etaireia (IKE): The IKE is a form of limited liability company with legal personality that was first introduced in 2012. It is the most common form of company in Greece, chosen by most founders, and requires at least 1 euro of capital (in cash or in kind contribution). For its corporate capital, the company issues shares which it distributes to the partners of the company.

Want to start an IKE? Read our in-depth about starting an IKE here.

Starting a Private Company in Greece

The founders of a Private Company or IKE can are natural and legal persons of Greece. Natural persons are Greek citizens, whereas legal persons are those that obtain the legal right to work in Greece.

When starting a business in Greece, it's vital to secure your residency permit. Whether you are a non-EU or EU national, you must obtain a valid residency permit that gives you full access to the Greek labor market, to sell any goods, products and services.

For EU citizens

EU citizens must obtain an EU card in order to legally work and live in Greece. This can be done on behalf of the employer at the police station or by showing at least 5.000 euros in a foreign or Greek bank account. They must also obtain a Greek TIN (AFM) before opening their own business.

For non-EU citizens

Non-EU citizens must also obtain a valid residency permit to have full access to the Greek market and employment. This can be achieved through a visa by investment, or on behalf of a Greek employer. For more information regarding residency permits, please see here.

If you're looking to obtain a Greek TIN or AFM number, read our article How Do I Get a TIN (AFM) in Greece?

Do I Need a License to Start a Business in Greece?

Depending on the type of industry, you may want to check the regulatory laws before you start your business. For instance, if you are looking to open a shop that sells edibles or food, it is recommended to visit the Hellenic Food Authority (EFET) website for food safety regulations and food licenses.

Understanding Taxes in Greece

As a first step in establishing a business in Greece, it is crucial to grasp a good understanding of how taxes work, so that you can avoid overpaying for them. This is why it is so important to select a good accountant who is specialized in your field, to understand the taxation laws involved, and how to file your tax declarations at the end of the fiscal year.

Read our article, Everything You Need To Know About Taxes in Greece.

Choosing the Right Spot for Your Business

When starting a business in Greece, you must register a company address. Your accountant should be able to appoint your company a virtual business address, or sign up with a physical office. Please note that some office companies offer business addresses for registration purposes.

Recruiting in Greece

Embarking on a new business adventure in Greece means building the ideal team! Becoming familiar with employment laws and regulations is paramount. Here's what we know: ‍

Complying with Employment Regulations: If you are starting to hire employees locally, then you must register with the Social Insurance Institute (IKA) or the single social security entity (EFKA). Here is the amount that employees and employers must contribute in the public and private sectors.

• Employees in the private sector pay 14.12% of their gross salary. Employees in the public sector pay 15.33%.
• Employers in the private sector pay 22.54% of their employee's gross salary. Employers in the public sector pay 24.33%.

Bank Accounts and Finances: In order to pay your staff, you must open a bank account for your business. To help you decide on which bank branch to open, we've put together an article, titled Navigating Greek Finance: The Most Popular Banks Across Greece in 2024, with all of their different features and key strengths.

Embarking on Your Greek Business Adventure

Given all of our tips for about launching and growing your new business in Greece, you are now ready to merge into the world of Greek entrepreneurship. As they say in Greece, "Καλή τύχη" or good luck!

For more information, book a 15-minute discovery call to learn more about our services and open a business.