Greece Corporate Tax - Guide for International Expansion

Are you considering expanding your business operations to Greece? Understanding the country's corporate tax system is essential for making informed decisions about your international expansion strategy.

Greece offers a strategic location at the crossroads of Europe, Asia, and Africa, making it an attractive destination for businesses looking to establish a European presence. With its membership in the European Union and adoption of the euro, Greece provides access to the single market while maintaining competitive tax rates. Whether you're planning to set up a subsidiary or simply need to understand your tax obligations, having a clear grasp of Greece's corporate tax framework will help ensure compliance and optimise your business operations. And when it comes to managing your international finances efficiently, Wise Business can help streamline your cross-border payments and currency management needs.

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This publication is provided for general information purposes and does not constitute legal, tax, or other professional advice from Wise Payments Limited, its subsidiaries or affiliates, and it is not intended as a substitute for obtaining business advice from a tax advisor or any other professional.

Greece Corporate tax rate in 2025

The standard corporate income tax rate in Greece is 22%.¹ This rate places Greece competitively within the European Union, where the average corporate tax rate stands at approximately 21.27%.²

The country also applies the global minimum tax framework under Pillar Two, which means that multinational companies with revenues exceeding €750 million may be subject to additional top-up taxes to ensure a minimum effective tax rate of 15%.³

Companies resident in Greece are subject to corporate income tax on their worldwide income, while non-resident companies are taxed only on their Greek-source income. A company is considered tax resident in Greece if it is incorporated under Greek law or if its place of effective management is in Greece.⁴

Read more about Corporate Tax Planning best practices

How to pay corporate tax in Greece

Corporate tax payments in Greece are managed through the country's electronic tax system, known as TAXISnet, which is operated by the Independent Authority for Public Revenue (AADE). All companies registered in Greece must use this online platform to file their tax returns and make payments.⁴

Corporate taxes in Greece are paid in euros (EUR). Companies whose functional currency is not the euro must convert their financial statements and tax calculations into euros using the exchange rates published by the European Central Bank or the Bank of Greece.⁴

Greek companies must file their annual corporate income tax return by the last working day of the sixth month following the end of the tax year. For companies following a calendar year (January to December), the return is due by the end of June of the following year. The tax liability and any advance tax payments are paid in a maximum of eight equal monthly installments.⁵

Companies are required to make advance tax payments, which are calculated as 80% of the previous year's tax liability. For newly established companies, this advance payment rate is reduced by 50% for the first three years of operations.⁵ Late payment of corporate tax incurs interest charges at a rate of 0.73% per month. Additionally, late filing penalties for businesses range from €250 to €500.⁶

Let's calculate the annual tax due for a company with a turnover of €1.5 million. Assuming a profit margin of 10%, the taxable profit would be €150,000.

At Greece's standard corporate tax rate of 22% the basic tax would be:

€150,000 × 22% = €33,000

If this payment were made 30 days late, the interest charge would be:

€33,000 × 0.73% = €240.90

Total amount due: €33,000 + €240.90 = €33,240.90

When expanding your business to Greece, the right financial tools will make the process smoother. Using a platform like Wise Business makes it easy to expand internationally with local EUR account details. A multi-currency account allows businesses to pay for incorporation costs, registration fees, and government taxes in local currency without paying high exchange rate fees.

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Tax Compliance in Greece

Staying compliant with Greek tax regulations requires timely registrations, accurate filings, and strong record-keeping practices. Businesses should prioritize these steps to avoid penalties and maintain smooth operations:

• Register for Taxes Early: Companies must register for Corporate Income Tax, VAT, withholding tax (WHT), and payroll taxes immediately after incorporation.⁷ Early registration prevents penalties and allows corporate tax planners to identify potential corporate tax incentives and streamline corporate tax computation.
• VAT Registration: All businesses conducting taxable transactions in Greece must register for VAT, as no threshold applies. Non-established entities must also register if they engage in taxable activities such as intra-community acquisitions, imports, or distance sales exceeding the annual limit. Late or missed submissions are penalties, especially if repeated within five years.
• File Annual Corporate Tax Returns: The taxable year generally follows the calendar year and cannot exceed 12 months.⁵ Companies must file corporate tax returns electronically by the last day of the sixth month after year-end. Businesses paying corporate tax instalments should ensure timely payments to avoid fines.
• Prepare for Audit: The Greek tax administration can audit up to five open tax years, reviewing corporate income tax, VAT, WHT, and capital gains. Companies should maintain reliable record-keeping systems and retain documents for at least five years.

International Expansion to Greece

Greece, a country with extensive historical value, has made its mark in the corporate world. Its business-friendly policies and geographic location make it a highly prioritized spot for corporate expansion.

The Greek economy grew by 2.3% in 2024, slightly exceeding earlier estimates and outperforming the European average of 1.0%.⁸ Growth was driven by domestic demand, private consumption, and investments, supported by rising wages, improved labor market conditions, and declining inflation. This reflects a strong and expanding consumer base, presenting a conducive environment for new and existing businesses.

Being an EU and euro-area member, Greece grants full access to the EU Single Market and the use of the euro.⁹ This enables businesses in Greece to reach a large, affluent consumer base efficiently. Its strategic location at the crossroads of Europe, Asia, and Africa, and advanced maritime and air transport infrastructure positions Greece as a key logistics and trade hub. Piraeus port, for example, ranks 1st among Mediterranean commercial ports and 25th globally, handling 4.9 million TEU annually.¹⁰

The tourism sector contributes to Greece’s business potential. The country welcomes millions of visitors every year. It boasts 16,000 kilometres of coastline, 6,000 islands, over 800,000 hotel beds, and advanced conference and yachting facilities that drive industry opportunities.¹¹

The steps to start a business in Greece are listed as follows:¹²

1. Conduct market research to understand the local business environment and target audience.
2. Develop a business plan that aligns with market needs and goals.
3. Select a business location and name.
4. Obtain a Greek Tax Identification Number (TIN) and TAXISnet credentials for online registration and tax purposes.
5. Register your company with the General Commercial Register (GEMI).
6. Open a business bank account.
7. Establish robust record-keeping systems for financial and legal compliance.

Understanding the Greek corporate tax rate and local regulations is crucial for businesses. Companies must file tax returns, handle instalments, and meet reporting requirements promptly. At the same time, awareness aboutits currency and banking systems helps companies make informed financial plans.

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Incorporation of Business in Greece

Entrepreneurs who want to start a business in Greece only need an active Greek Tax Identification Number (TIN) and TAXISnet credentials, which act as an electronic signature. The process is fully digital and occurs in real time through the e-YMS platform.

After logging in, founders can select the option to set up a new company, provide details such as business name, objectives, address, share capital, and legal form, and use the model articles of association provided by the system. These articles are automatically generated, and the company is registered with the General Commercial Register (GEMI).

After completing this step, the company also receives automatic registration with the tax authority (AADE) and a tax identification number and registration with the social security institution (e-EFKA) for an Employer Register Number. The Certificate of Establishment is issued electronically, confirming incorporation. This streamlined process reduces delays and makes Greece attractive for international investors who want to comply with global corporate tax law while taking advantage of its growing economy.

Top requirements when incorporating in Greece include:¹³

• Company name: Must be unique and approved through the e-YMS system.
• Registered address: A physical address in Greece for official correspondence.
• Articles of association: Created automatically based on founder input.
• Share capital: Depends on the chosen entity type.
• Directors/shareholders: At least one founder (individual or legal entity) is required.

Types of Business Entities in Greece¹⁴

Société Anonyme (S.A.): A capital company governed by Law 4548/2018, suitable for larger businesses or companies planning to be listed. Liability is limited to contributed capital, and shares are easily transferable.

• Private Company (P.C.): Established under Law 4072/2012, this flexible entity type is now the most popular in Greece. It requires no minimum capital and is ideal for small to medium businesses, though it can also serve larger ventures.
• Limited Liability Company (Ltd): Governed by Law 3190/1955, the Ltd combines capital and personal elements. It is suitable for small and medium-sized enterprises, but is less common today due to the growing preference for the PC.

Businesses in Greece must follow VAT and corporate tax rules, so understanding the corporate tax rate and how it compares with other EU countries is vital for effective planning.

International corporate tax best practices

Managing corporate tax obligations across multiple jurisdictions requires a strategic approach that balances compliance with efficiency. Here are key best practices for international businesses operating in Greece and other countries.

Maintain robust compliance procedures by establishing clear processes for tax filing deadlines, documentation requirements, and regulatory changes. Greece's tax authorities have increased their focus on transfer pricing and international transactions, making it essential to maintain detailed records of intercompany dealings.

Leverage double taxation treaties effectively. Greece has signed double taxation agreements with over 60 countries, which can significantly reduce withholding taxes on dividends, royalties, and interest payments. Understanding these treaties can help optimise your overall tax burden when structuring international operations.

Consider the impact of EU directives on your tax planning. As an EU member state, Greece benefits from various directives that facilitate cross-border business activities, such as the Parent-Subsidiary Directive and the Interest and Royalties Directive, which can eliminate or reduce withholding taxes on qualifying payments between EU companies.

Implement proper transfer pricing documentation to comply with OECD guidelines and Greek regulations. Companies with related-party transactions exceeding certain thresholds must prepare transfer pricing documentation and may need to submit country-by-country reports.

Take the complexity out of international expansion with Wise Business

Researching corporate tax is a crucial step when expanding your business into a new country. The next step is setting up the financial infrastructure to handle the complexities of operating across borders, from managing multi-currency cash flow to mitigating FX risk.

The Wise Business account provides the financial tools to make your international expansion to Greece efficient and simple. It's the one account for managing your money globally.

With a Wise Business account, you can:

• Pay suppliers and initial fees: Pay suppliers, global payroll, and one-off incorporation costs in the local currency.

• Get paid like a local: Use local account details for 8+ major currencies to easily receive payments from customers or investors.

• Manage your money across borders: Hold and exchange 40+ currencies in one account, always with the mid-market exchange rate and low, transparent fees.

• Streamline your accounting: Integrate with tools like Xero or QuickBooks to simplify tracking your company's international finances.

• Empower your team: Provide multi-user access for your finance team and issue expense cards for international spending.

Wise is designed to support every step of your journey, from paying your first registration fee to receiving international payments and managing your global treasury.

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FAQs - Corporate tax in Greece

Who is liable for corporate tax in Greece?

All companies incorporated in Greece are liable for corporate tax on their worldwide income. Foreign companies are subject to Greek corporate tax only on income derived from Greek sources, such as through a permanent establishment or specific types of Greek-source income like rental income from Greek properties.

Are there any tax incentives for businesses in Greece?

Yes, Greece offers several tax incentives to promote corporate investment. The country provides a range of state aid and tax benefits under its Development Law for qualifying private investment projects, which can include tax exemptions, cash grants, and subsidies.In addition, Greece offers accelerated depreciation allowances for certain investments, particularly those focused on the green economy and digitalization. The country also maintains a special tonnage tax regime for shipping companies, where tax is based on a vessel's capacity rather than on corporate profits.

What is the tax treatment of dividends in Greece?

Dividends distributed by Greek companies to Greek resident companies are generally exempt from corporate income tax. Dividends paid to non-resident companies may be subject to withholding tax at rates ranging from 5% to 15%, depending on applicable double taxation treaties. Individual shareholders face withholding tax of 5% on dividend income.

What is the process for registering for corporate tax in Greece?

Companies must register with the tax authorities within 30 days of incorporation or commencement of business activities. Registration is done through the General Commercial Registry (GEMI) and automatically assigns a tax identification number (AFM). Companies must also register for VAT if their annual turnover exceeds €10,000.

What are the common pitfalls to avoid regarding corporate tax in Greece?

Common mistakes include failing to make advance tax payments on time, inadequate transfer pricing documentation, not maintaining proper books and records, and missing the annual tax return deadline. Additionally, many companies underestimate the importance of obtaining proper tax advice when structuring their Greek operations, which can lead to inefficient tax outcomes and non-compliance with new regulations, like the global minimum tax framework.

Sources used in this article:

1. PwC Tax Summaries: Greece Corporate Income Taxes
2. Tax Foundation: Corporate Tax Rates by Country 2024
3. EY: Greece Transposes Pillar Two Legislation
4. PwC Tax Summaries: Greece Corporate Residence
5. PwC Tax Summaries: Greece Tax Administration
6. Leptokaridou & Associates: Taxes in Greece
7. Sovos: VAT Compliance in Greece
8. Ministry of Finance: Greece Annual Progress Report 2025 (PDF)
9. European Commission: Greece and the Euro
10. Enterprise Greece: Logistics Sector
11. Enterprise Greece: Tourism Sector
12. Global Citizen Solutions: Starting a Business in Greece
13. gov.gr: How to Start a Business in Greece
14. Lexology: Company Law in Greece

Sources last checked 15/09/2025