Verified Facts
Doing business in Greece can be a rewarding experience, with the country offering a unique blend of traditional industries and emerging sectors, although it requires navigating a complex bureaucracy and addressing some persistent challenges.
Quick Facts
Business Environment
Greece has made significant progress in recent years to improve its business environment, with the government implementing various reforms to attract foreign investment and stimulate economic growth. The country's strategic location at the crossroads of Europe, Asia, and Africa, as well as its highly developed shipping industry, make it an attractive hub for trade and investment. However, the bureaucratic process can be slow and cumbersome, and corruption remains a concern, with Greece ranking 60th out of 180 countries in Transparency International's Corruption Perceptions Index 2020.
The government has taken steps to address these issues, including the establishment of a one-stop shop for investors and the introduction of fast-track procedures for strategic investments. Additionally, Greece has a highly skilled and educated workforce, with a strong emphasis on research and development. The country is also a member of the European Union and the eurozone, providing a stable and secure environment for businesses.
Despite these advantages, Greece still faces significant challenges, including a high debt-to-GDP ratio and a slow pace of economic growth. The country is also heavily reliant on a few key industries, such as tourism and shipping, which can make it vulnerable to external shocks. To mitigate these risks, the government is promoting diversification and innovation, with a focus on emerging sectors such as renewable energy and information technology.
Starting a Business
| Step | Requirement | Time | Cost (USD) |
|---|---|---|---|
| 1 | Register with the Chamber of Commerce | 1 day | 100 |
| 2 | Obtain a tax identification number | 1 day | 0 |
| 3 | Register with the Social Security Institute | 1 day | 0 |
| 4 | Obtain a business license | 30 days | 500 |
| 5 | Open a bank account | 1 day | 100 |
| 6 | Register with the Statistical Authority | 1 day | 0 |
| 7 | Obtain any necessary permits | 30 days | 500 |
| 8 | Register with the Labor Inspectorate | 1 day | 0 |
Investment Opportunities
| Sector | Opportunity | Growth Potential | Notes |
|---|---|---|---|
| Tourism | Development of new resorts and hotels | High | Greece's tourism industry is a significant contributor to the economy, with opportunities for investment in new resorts and hotels |
| Renewable Energy | Development of solar and wind farms | Medium | Greece has set ambitious targets for renewable energy, with opportunities for investment in solar and wind farms |
| Agriculture | Production of high-quality agricultural products | Medium | Greece has a strong agricultural sector, with opportunities for investment in the production of high-quality products such as olives and olive oil |
| Shipping | Investment in new vessels and shipping infrastructure | High | Greece has a highly developed shipping industry, with opportunities for investment in new vessels and shipping infrastructure |
| Information Technology | Development of software and IT services | High | Greece has a growing IT sector, with opportunities for investment in software development and IT services |
| Real Estate | Development of new residential and commercial properties | Medium | Greece's real estate market is recovering, with opportunities for investment in new residential and commercial properties |
Foreign Direct Investment
- Greece has attracted significant foreign direct investment in recent years, with a total of $4.9 billion in 2020.
- The main investing countries are the United Kingdom, Germany, and the United States.
- The government offers various incentives for foreign investors, including tax breaks and subsidies for strategic investments.
- Restricted sectors for foreign investment include defense and security, as well as certain areas of the media and telecommunications.
- Greece is a member of the European Union and the eurozone, providing a stable and secure environment for foreign investors.
Legal & Regulatory Framework
- Greece has a well-established legal framework, with a strong emphasis on contract law and property rights.
- The country has a civil law system, with a comprehensive set of laws and regulations governing business activity.
- Intellectual property protection is strong, with Greece being a signatory to major international treaties such as the Paris Convention and the Berne Convention.
- Labor laws are comprehensive, with a strong emphasis on workers' rights and social protection.
- Dispute resolution is available through the courts, as well as through arbitration and mediation.
- Greece is a member of the World Trade Organization and the European Union, providing a stable and secure environment for businesses.
Challenges & Risks
- Greece faces significant challenges, including a high debt-to-GDP ratio and a slow pace of economic growth.
- The country is heavily reliant on a few key industries, such as tourism and shipping, which can make it vulnerable to external shocks.
- Corruption remains a concern, with Greece ranking 60th out of 180 countries in Transparency International's Corruption Perceptions Index 2020.
- The bureaucratic process can be slow and cumbersome, which can make it difficult to start and operate a business.
- Greece is also vulnerable to geopolitical risks, including tensions with neighboring countries and the ongoing refugee crisis.
- The country's infrastructure can be limited in some areas, particularly outside of the major cities.
Free Zones & Incentives
- Greece has several special economic zones, including the Thessaloniki Free Zone and the Piraeus Free Zone.
- The government offers various incentives for foreign investors, including tax breaks and subsidies for strategic investments.
- The Hellenic Investment and Foreign Trade Board provides support and guidance for foreign investors, including information on investment opportunities and the regulatory framework.
- Greece also offers investment promotion schemes, including the Invest in Greece program, which provides support and incentives for foreign investors.
- The country's research and development sector is also supported through various initiatives, including the Greek Research and Technology Network.