FAQ – Tax, VAT & Company Formation in Greece
Find clear answers to common questions about Greek company formation, tax registration, VAT, branches, subsidiaries, permanent establishment, payroll, property activity and ongoing accounting compliance in Greece.
N. KOLYDAS I.K.E. supports foreign founders, shareholders, directors, companies and investors who need a structured Greek tax and accounting route before they start business activity in Greece.
FAQ Hub Tax VAT IKE Branch Payroll AFM ? ? ?
One FAQ hub for the questions foreign clients ask before entering Greece.
The page connects tax, VAT, AFM, company formation, branch registration, payroll and compliance questions into one structured decision path.
Tax, VAT and company formation questions should be answered before the first Greek filing.
This FAQ page is designed for foreign entrepreneurs, non-resident shareholders, foreign directors, international groups, property investors and companies planning to operate, invoice, hire or register in Greece.
Use this FAQ as a first route map.
Greek business setup is not only a registry procedure. Before you form a company, open a branch, register for VAT, hire employees or acquire property through a foreign company, the tax and accounting route should be reviewed.
The answers below explain the main issues in practical language. They do not replace a case-specific tax review, because each structure depends on the persons involved, activity, contracts, VAT position, local presence, payroll and documentation.
Find a Greek tax advisor
Use this FAQ to identify the correct starting point, then submit your case for a structured review by our Greek accounting and tax team.
For foreign clients and companies
The page is written for non-residents, foreign founders, foreign parent companies, shareholders, directors and cross-border businesses.
Remote accounting support
Many procedures and ongoing obligations can be coordinated remotely, depending on the exact filing, documents and required verification.
Choose the question category that matches your Greek setup route.
Each category connects with a different route: Greek tax ID, VAT registration, company formation, branch, subsidiary, payroll, property, permanent establishment or ongoing accounting.
Tax in Greece
Corporate tax, dividend withholding, Greek tax ID, tax residence and recurring obligations.
View tax FAQ → 02VAT in Greece
VAT registration, VAT rates, myDATA, invoicing and foreign-company VAT exposure.
View VAT FAQ → 03Company Formation
IKE, AE, branch, subsidiary, shareholder AFM, UBO and registry setup.
View company FAQ → 04Foreign Companies
Branch vs subsidiary, permanent establishment, property and Greek market-entry structures.
View foreign FAQ →Greek tax questions for foreign founders and companies.
These questions usually determine whether the next step is Greek tax ID registration, company setup, branch registration, VAT review or permanent establishment analysis.
What is the standard corporate income tax rate in Greece?
The standard Greek corporate income tax rate for most legal entities is currently 22%, subject to special cases and future legislative changes. Banks and specific regulated cases may require separate review.
Are dividends from a Greek company subject to withholding tax?
Dividends are generally reviewed under the Greek dividend withholding framework. A standard 5% withholding tax may apply, while treaty relief or parent-subsidiary exemption may reduce or eliminate withholding in qualifying structures.
Does a foreign shareholder need a Greek tax ID?
In many company formation, branch, property, banking and tax registration cases, foreign shareholders, directors, managers or representatives may need a Greek AFM before the procedure can move forward.
Does opening a company in Greece make the foreign owner a Greek tax resident?
Not automatically. Tax residence depends on separate facts. However, the role of the owner, manager or director, place of management, local presence and actual decision-making should be reviewed.
What annual tax obligations does a Greek company usually have?
A Greek company usually needs accounting books, annual tax return, financial statements where applicable, VAT returns where registered, withholding tax filings where relevant, myDATA compliance and other recurring obligations.
Greek VAT questions for foreign companies and cross-border activity.
VAT should be reviewed before invoicing starts, especially for e-commerce, property, services, warehousing, local sales, events, platforms and foreign companies operating in Greece.
What is the standard VAT rate in Greece?
The standard Greek VAT rate is 24%. Reduced rates may apply to specific goods and services, such as 13% or 6%, depending on the transaction. Each case should be checked before invoicing.
Can a foreign company need Greek VAT registration without forming a Greek company?
Yes. A foreign company may trigger Greek VAT obligations even without forming a Greek company. This depends on the transaction type, location of supply, goods movement, customer type and business model.
Is Greek VAT registration the same as opening a branch?
No. VAT registration is a tax registration route. A branch is a formal Greek presence of the foreign company. Permanent establishment is a separate tax-risk analysis based on the actual facts.
Does Greek VAT registration create myDATA obligations?
In many cases, Greek invoicing and VAT activity should be reviewed together with myDATA and digital reporting obligations. The exact setup depends on how invoices are issued and how the activity is structured.
Can VAT apply to property transactions or rentals in Greece?
Property transactions and rentals require case-by-case review. Transfer tax, VAT, exemptions, commercial leases, new buildings, short-term rental and development cases may have different treatment.
Greek company formation questions for foreign founders.
Before forming a Greek company, review legal form, shareholders, managers, Greek tax IDs, VAT, banking, payroll and ongoing accounting compliance.
Can a foreigner open a company in Greece?
Yes. Foreign individuals and foreign companies can participate in Greek business structures, subject to the correct documentation, tax ID requirements, legal form, activity and registration procedure.
Is an IKE a good structure for foreign founders?
An IKE is often a practical structure for small and medium-sized business cases, but it is not automatically the best choice. The decision should consider ownership, management, VAT, payroll, banking, licensing and future profit distribution.
Can a foreign company own a Greek subsidiary?
Yes. A foreign parent company can own a Greek subsidiary, subject to proper corporate documents, shareholder review, UBO registration, tax registration and formation procedure.
What is the difference between a Greek branch and a Greek subsidiary?
A subsidiary is a separate Greek legal entity. A branch is an extension of the foreign company. The choice affects tax, accounting, liability, registry, banking and ongoing compliance.
Can the company formation process be handled remotely?
A significant part of the process can often be coordinated remotely, especially document collection and review. The exact procedure depends on legal form, identity verification, powers of attorney, banking and signing requirements.
Questions for foreign companies entering Greece.
A foreign company may need VAT registration, branch registration, Greek subsidiary formation, payroll registration or permanent establishment review depending on its activity in Greece.
Can a foreign company operate in Greece without forming a Greek company?
In some cases, yes. The foreign company may need VAT registration, payroll registration or another limited setup. In other cases, a branch or Greek subsidiary may be required or more practical.
When should a foreign company consider branch registration in Greece?
Branch registration should be reviewed when the foreign company has a formal and recurring presence in Greece, contracts, local operations, staff, management or activity that goes beyond limited VAT registration.
What is permanent establishment risk?
Permanent establishment risk arises when a foreign company’s activity in Greece may create taxable presence. This may involve a fixed place of business, dependent agents, local management, staff, contracts or operational activity.
Can a foreign company buy property in Greece?
Yes, but the company should review Greek tax ID registration, property acquisition tax, VAT or transfer tax, E9/ENFIA, UBO details, banking, and whether the property will be used for business activity.
Should a foreign company choose VAT registration, branch or subsidiary?
The correct route depends on activity, risk, contracts, invoicing, local presence, employees, banking, tax planning and future expansion. The routes should be compared before any filing starts.
Hiring and payroll questions for foreign employers in Greece.
Hiring in Greece should be reviewed before the employment relationship starts, because payroll may trigger labour, social security, tax and permanent establishment questions.
Can a foreign company hire employees in Greece?
It may be possible, but the employer route must be reviewed. The company may need payroll registration, EFKA and labour reporting obligations, and possibly branch or permanent establishment review.
Does hiring employees in Greece create permanent establishment risk?
It can, depending on the employee’s role, authority, location, contracts, management and activities performed in Greece. A case-specific PE review is recommended before hiring.
Can payroll be managed remotely?
Payroll processing, document exchange and monthly reporting can often be coordinated remotely. However, the employment route, labour law documents and employer registration must be set up correctly first.
Greek property questions for foreign companies and investors.
Property acquisition may be a simple investment, but it can also become a business activity route with VAT, accounting, rental income, permanent establishment and payroll implications.
Does a foreign company need a Greek tax ID to buy property?
In most cases, Greek tax registration and digital access should be reviewed before acquisition, especially where purchase tax declarations, notarial process or post-acquisition filings are required.
Does owning Greek property create annual obligations?
Greek property ownership generally creates property reporting and annual property tax obligations. The property should be mapped correctly for E9/ENFIA and related filings.
Can a foreign company use Greek property for business activity?
It may be possible, but the route should be reviewed for KAD mapping, VAT registration, accounting books, myDATA, invoicing, payroll and possible branch or permanent establishment issues.
Need a case-specific answer for tax, VAT or company formation in Greece?
Send us the facts of your case. We will review the persons involved, the intended activity, the Greek tax route, VAT exposure, company or branch setup, payroll questions and ongoing compliance needs.