How to Open a Business in Greece in 2026

Greece, with its growing economy, has been making significant strides in attracting foreign investors and entrepreneurs. But in starting any entrepreneurial endeavor, there must be thorough preparation as well as paperwork, primarily getting the Greek tax ID (AFM) and opening a local bank account. But what if the legalities become too overwhelming? There's honestly no need to worry, since we've put together this guide to help you through the business incorporation process.

If you're planning to go solo and considering freelancing in Greece, you'll need to know how to register as a freelancer and the ins and outs of social security insurance in Greece, including what EFKA is.

The Different Type of Business Entities in Greece

When starting your entrepreneurial journey in a foreign country, picking the right type of business entity is an important first step.

Here's a handy breakdown to help entrepreneurs begin their business endeavors:

• Sole Proprietorship: Ideal for those freelancing in Greece. It involves less paperwork and generally simpler tax-wise – but remember, you must read up on the current taxation laws in Greece, or get an accountant to file your taxes correctly, to avoid overpaying for them. Read our guide on how you can register as a freelancer in Greece.
• Eterorithmi Etaireia (EE): A Greek limited partnership is established by a minimum of two investors, known as partners, and does not require any initial capital. In this arrangement, one partner must be a limited partner, who has limited liability for the company's debts and does not have any management responsibilities. Additionally, there must be at least one general partner who is responsible for managing the company.
• Idiotiki Kefalaiouxiki Etaireia (IKE): The IKE is a form of limited liability company or LLC with legal personality that was first introduced in 2012. It is the most common form of company in Greece, chosen by most founders, and requires at least 1 euro of capital (in cash or in kind contribution). For its corporate capital, the company issues shares which it distributes to the partners of the company.

Want to start an IKE? Read our in-depth about starting an IKE here.

Starting a Private Company in Greece

The founders of a Private Company or IKE can are natural and legal persons of Greece. Natural persons are Greek citizens, whereas legal persons are those that obtain the legal right to work in Greece.

When starting a business in Greece, it's vital to secure your residency permit. Whether you are a non-EU or EU national, you must obtain a valid residency permit that gives you full access to the Greek labor market, to sell any goods, products and services.

For EU citizens

EU citizens must obtain an EU card in order to legally work and live in Greece. This can be done on behalf of the employer at the police station or by showing at least 5.000 euros in a foreign or Greek bank account. They must also obtain a Greek TIN (AFM) before opening their own business.

For Non-EU citizens

Non-EU citizens must also obtain a valid residency permit to have full access to the Greek market and employment. This can be achieved through a visa by investment, or on behalf of a Greek employer.

Using a Greek Company Structure Without Full Market Access

There is a practical workaround that many foreigners use successfully when they do not yet hold a residence permit that allows full business activity in Greece. In this case, you can still set up a Greek company such as an IKE or an EE by participating as a shareholder rather than acting as the legal manager. This means you contribute the capital and own shares in the company, but another individual must legally run it.

The person managing the company must either be a Greek citizen with an AFM or a foreign national who already holds a residence permit that allows employment or business activity in Greece. As long as you are comfortable appointing a trusted Greek partner or an eligible resident to act as director or board member, it is entirely possible to launch and operate a business in Greece using this structure.

It is also important to know that the company’s share capital must be deposited into a Greek bank account. During this process, the bank will carry out checks and verify the legal status of the founders and managers before allowing the account to be opened. This step is mandatory and often determines whether the company setup can move forward smoothly.

If you're looking to obtain a Greek TIN or AFM number, read our article How Do I Get a TIN (AFM) in Greece?

Do I Need a License to Start a Business in Greece?

Depending on the type of industry, you may want to check the regulatory laws before you start your business. For instance, if you are looking to open a shop that sells edibles or food, it is recommended to visit the Hellenic Food Authority (EFET) website for food safety regulations and food licenses.

Understanding Taxes in Greece

As a first step in establishing a business in Greece, it is crucial to grasp a good understanding of how taxes work, so that you can avoid overpaying for them. This is why it is so important to select a good accountant who is specialized in your field, to understand the taxation laws involved, and how to file your tax declarations at the end of the fiscal year.

Read our article, Everything You Need To Know About Taxes in Greece.

When to File Taxes

One important difference many newcomers notice is that taxes in Greece are not paid monthly or in real time. Instead, income tax is filed once per year between May and June, and always in arrears. Tax declarations are usually submitted between May and June, covering income earned in the previous calendar year. For example, income earned during 2025 is declared in the summer of 2026.

Once the tax return is filed, any tax due is typically paid in installments rather than as a single lump sum. The exact payment schedule is set by the tax authority each year, but it usually allows several months to settle the amount owed. This system can feel unfamiliar at first, but it often helps with cash flow, especially during your first year of freelancing or running a business in Greece.

Social Security Contributions for Business Owners in Greece

Expat business owners must pay social security contributions to EFKA, Greece’s national social security fund, which averages approximately €1,800 per year (approx. €150 per month) depending on the contribution band chosen.

Paying EFKA contributions gives business owners access to Greece’s public healthcare system and builds entitlement toward a state pension. In practical terms, this means coverage for medical care and long term pension rights.

To read about what EFKA covers, read our guide on what EFKA is and what kind of benefits you can get as a business owner.

Ongoing Costs of Running a Business in Greece

When running a business in Greece, there are ongoing costs to consider. Annual accounting fees for freelancers typically come to around €1,200 per year (€100 per month) and include bookkeeping, consulting, and tax filings. Expect to pay around €3,000 per year in accounting fees for larger enterprises like IKE.

Once your business is set up, you will be sending your invoices and business expenses to your accountant each month. This process is rather straightforward once it is set up, and most people find it easy to manage with minimal effort. A wide range of business related expenses can be deducted from your taxable income, including office equipment, electronics, and in some cases rent or other costs that are directly connected to your professional activity.

Risks, Penalties and Liabilities of Running a Business

As long as tax declarations are filed correctly and on time, there are very few risks involved. Working with a reliable accountant significantly reduces the chance of penalties, and any legislative changes affecting freelancers or business owners are usually communicated in advance.

🧠 In need of a reliable, English-speaking accountant? We’ve got the right solution for you. Email info@mygreekexpatjourney.com or book a discovery call to learn more.

VAT Rules for Greek Companies and IKE Structures

If a Greek company or IKE is invoicing a UK based client, VAT is not added to the invoice because the UK is outside the European Union. The income is still declared in Greece as part of the company’s taxable revenue, but the invoice itself is issued without Greek VAT.

If the company is invoicing an EU based client, such as a business in Poland, VAT rules apply at the Greek level. In many cases, VAT is charged at the Greek rate and declared through quarterly VAT filings. Your accountant will confirm whether standard VAT or a reverse charge applies, ensuring the invoice is issued correctly and the VAT is reported to the Greek tax authority on time.

Understanding these distinctions from the beginning is essential for pricing your services correctly and staying compliant. This is why working with a knowledgeable Greek accountant is a core part of setting up and running a company in Greece successfully.

Choosing the Right Spot for Your Business

When starting a business in Greece, you must register a company address. Your accountant should be able to appoint your company a virtual business address, or sign up with a physical office. Please note that some office companies offer business addresses for registration purposes.

Recruiting in Greece

Embarking on a new business adventure in Greece means building the ideal team! Becoming familiar with employment laws and regulations is paramount. Here's what we know: ‍

Complying with Employment Regulations: If you are starting to hire employees locally, then you must register with the National Social Insurance Institute (IKA) or the single social security entity (EFKA). Here is the amount that employees and employers must contribute in the public and private sectors.

• Employees in the private sector pay 14.12% of their gross salary. Employees in the public sector pay 15.33%.
• Employers in the private sector pay 22.54% of their employee's gross salary. Employers in the public sector pay 24.33%.

To decide on a Greek bank, please read about the most popular banks across Greece.

Embarking on Your Greek Business Adventure

Given all of our tips for about launching and growing your new business in Greece, you are now ready to merge into the world of Greek entrepreneurship. As they say in Greece, "Καλή τύχη" or good luck!

For more information, book a 15-minute discovery call to learn more about our services and open a business.