The Greek tax system for digital businesses
Greece has undergone significant tax reform in recent years, creating a more competitive environment for businesses. The corporate tax rate has been reduced to 22%, down from 29% just a few years ago, and various incentive programs make Greece increasingly attractive for entrepreneurs and investors. Understanding the full tax landscape is essential for effective business planning and ensuring compliance.
Corporate income tax
Legal entities (IKE, EPE, AE) are subject to corporate income tax at a flat rate of 22% on net taxable profits. This rate applies uniformly regardless of the level of income. Distributed dividends are subject to an additional 5% withholding tax. For newly formed companies, the first fiscal year may extend up to 18 months. Tax returns must be filed electronically through the AADE (tax authority) platform within six months of the fiscal year end, typically by June 30 for calendar-year companies.
Personal income tax (for sole proprietors)
Sole proprietors and partners in general partnerships are taxed at progressive rates on business income:
- €0 – €10,000: 9%
- €10,001 – €20,000: 22%
- €20,001 – €30,000: 28%
- €30,001 – €40,000: 36%
- Above €40,000: 44%
This progressive structure makes the IKE (at flat 22% corporate tax) significantly more tax-efficient for businesses earning above approximately €20,000 in profit, which is one reason the IKE has become so popular.
Social security contributions (EFKA)
Self-employed individuals and managing partners of IKE/EPE companies must pay EFKA social security contributions. The contributions are calculated as a percentage of declared income, with minimum monthly contributions of approximately €220-260. This covers pension, health insurance and unemployment insurance. Understanding EFKA obligations is essential for accurate cost planning.
Tax incentives and benefits
- Development Law 4887/2022: Offers tax exemptions (up to 100% of investment cost), cash grants, leasing subsidies and employment cost subsidies for qualifying investments. Key sectors include manufacturing, tourism, technology, logistics and agri-food. Minimum investment thresholds vary by region and company size, starting from €100,000 for small enterprises
- NSRF (ΕΣΠΑ) programs: EU-cofinanced grants covering 40-60% of eligible costs for digital transformation, equipment purchases, export activities and green investments. Application rounds open periodically and are highly competitive
- Elevate Greece incentives: Companies registered with the Elevate Greece national startup registry can benefit from a 50% tax deduction on investment in startups and exemption from capital gains tax on startup share sales
- R&D super deduction: Businesses can deduct 200% of qualifying R&D expenses from taxable income, effectively reducing the tax burden for innovative companies
- Non-dom tax regime: High-net-worth individuals transferring tax residence to Greece can benefit from a flat tax of €100,000 per year on worldwide income for 15 years, regardless of actual income levels
Zunapro collaborates with Greek tax professionals to ensure full compliance and optimal use of all available incentives for e-commerce businesses operating in Greece.