Greece

Greece has been the member of the European Union since 1981 and since 2002 one can pay with euro in the country. Although there are various difficulties for the businesses, the country is trying to change the situation. Foreigners have to comply with various regulations that they have not met elsewhere.

There are 5 major corporate forms in Greece:

  • Limited liability company
  • Share company
  • Limited partnership
  • Branch office
  • Site of a foreign company

Limited Liability Company

An LLC in Greece may be set up by one person but the minimum share capital should be at least 18 000 euro. A corporation tax should be paid to the tax office before the set up of a company which represents 1% of the share capital. Managers should have a Greek tax number. If these exist the company should be notified at the Court of Registry and at the competent chamber too.

Taxation

The General Turnover Tax is 19%, while for food, medicines, electricity and transport is 9%. Personal income taxes vary by rates between 0 and 45% according to the following: till 12 000 euro 0%, between 12-16 000 euro 18%, between 16-22 000 euro 26%, between 26-32 000 euro 32%, between 32-40 000 euro 36%, between 40-60 000 euro 38%, between 60-100 000 euro 40% and over 100 000 euro 45%.

The Greek GDP fell by 0.1 per cent compared to the previous quarter and 0.5 per cent in the first quarter of 2016. This means that after 2012 the recession has returned to the Mediterranean state. Greece needs again a third international rescue package, so creditors expect certain measures. The austerity measures include a retirement pension until 2019 and a tax increase up to 2020.

As Greece has issued a successful bond issue with the help of which it has returned to the international financial markets and this may amplify the view that the country may withdraw from the financial aid program in the next year. However this has little realities. The country’s financing requirement is likely to reach € 19 billion by 2019, and in case of this the country is likely to leave the program, if Athens is willing to finance the operation of the country at higher interest rates, which would increase the debt burden and would also restrain any economic growth.