Paying Taxes in Greece

 1. What is the corporate tax in Greece?

The standard corporate tax rate for the first half of 2011 in Greece is 24%. After the 31st July 2011, the corporate tax rate is 20%, while for partnerships, the corporate tax rate in Greece is 25%. 

2. What is the VAT in Greece?

In Greece, the standard VAT rate is 23%, with a reduced rate of 13% for food, drinks, medicine or transportation and a 6.5% VAT rate for accommodation, children’s books or newspapers. There are variable reduced rates on Greek islands, too.

3. How can the VAT be refunded in Greece?

As part of the European Union, Greece has a system specially designed for companies to recover VAT. The reclaim has to be submitted electronically to a portal of the local tax authorities, together with invoices and an application form. If the company does not want to deal with this system which can be rather confusing and complex, it can hire a local expert that will need only the invoices and the tax certificate in order to obtain your VAT refund.

4. What is the dividend tax in Greece?

In Greece, the dividend tax rate is 21% in 2011, but it will increase to 25% since 2012.

5. Are there any incentives for foreign investors in Greece?

After the economy of Greece has passed through a tough phase, the Greek government decided to offer several incentives to foreign investors in order to attract capital to the country by specific laws. Therefore, there have been stipulated some tax reliefs and bank loans and many other benefits in order to encourage all entrepreneurs, especially young ones, aged between 18 and 40 years old. All foreign investors may apply for support by submitting an application form that contains a clear investment plan.

6. Why do I need a local accountant for my business in Greece?

A local accountant would be a good idea for your business in Greece, since he or she will give you professional and knowledgeable accounting solutions to any problems that may appear.

BridgeWest offers company formation in Greece and additional services such as a local virtual office and accounting services.