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Greece is a Southeast European nation. It is positioned on the southernmost edge of the Balkans, at the crossroads of Europe, Asia, and Africa. Greece is bordered to the northwest by Albania, to the north by North Macedonia and Bulgaria, and to the northeast by Turkey. The Aegean Sea is to the east of the mainland, the Ionian Sea to the west, and the Mediterranean Sea and the Sea of Crete to the south. Greece boasts the Mediterranean's longest coastline, with hundreds of islands. The nation is divided into nine traditional geographic areas and has a population of around 10.7 million people. The capital and biggest city of Greece is Athens, which is followed by Thessaloniki.
Greece is regarded as the origin of democracy, Western philosophy, Western literature, historiography, political science, important scientific and mathematical ideas, theater, and the Olympic Games. The Greeks were organized into different separate city-states known as poleis (plural polis) that covered the Mediterranean and the Black Sea beginning in the seventh century BC. In the fourth century BC, Philip II of Macedon unified much of modern-day Greece, and his son Alexander the Great quickly conquered much of the ancient world, from the eastern Mediterranean to India. The Hellenistic era was the pinnacle of Greek culture and influence in antiquity. Greece was captured by Rome in the second century BC, becoming a component of the Roman Empire and its successor, the Byzantine Empire, which was largely Greek culturally and linguistically. The Greek Orthodox Church, which began in the first century AD, helped form contemporary Greek identity and spread Greek customs across the Orthodox world. Following a war of independence in 1830, Greece emerged as a modern nation-state after coming under Ottoman authority in the mid-15th century. The rich historical record of the nation is represented in part through the country's 18 UNESCO World Heritage Sites.
Greece is a developed nation with a developed high-income economy and a good quality of life, ranked 32nd on the Human Development Index. It has the biggest economy in the Balkans and is a major regional investor. Greece, a founding member of the United Nations, was the eleventh state to join the European Communities (forerunner to the European Union) and has been a member of the Eurozone since 2001. It is also a member of a number of other international organizations, including the Council of Europe, NATO, the OECD, the World Trade Organization, and the OSCE. Greece is classified as a medium power due to its distinct cultural legacy, significant tourist economy, major maritime sector, and geostrategic relevance.
Employees who work five days a week are entitled to a minimum of 20 prorated days of paid vacation per year. Employees are entitled to an extra day of leave for each additional year of employment, up to a limit of 22 days. Employees who have worked for the same employer for 10 years or for another employer for 12 years are entitled to 25 days of vacation each year.
Employees with 25 years or more in experience are entitled to 26 days of vacation. Employees are therefore entitled to an annual leave payment equivalent to the compensation for time off, up to half a paycheck.
Greece recognizes 7 public holidays and 4 optional holidays.
The employer is required to pay the employee for sick leave: 13 days in the first year and 25 days from the second year onwards. Both the boss and the EFKA pay for the days.
119 calendar days of maternity leave. (The employer pays for the first month; the EFKA pays the rest.) The first 56 calendar days should be taken before the due date, and the next 63 calendar days should be taken after the due date.
In addition to maternity break, the Labor Employment Office pays a 6-month leave at the minimum wage (OAED).
Instead of shortened regular working hours, mothers can negotiate with their employers for an additional 3.5 months of paid leave.
Since the birth of their child, fathers are entitled to two days of paid leave.
The boss pays for two days of childbirth leave.
5 working days off for a wedding
Leave for children's school grading: four working days for each infant under the age of sixteen. Each of the parents can take advantage of this type of leave.
For the death of a husband/wife, infant, parents, or brothers, bereavement leave is granted for two working days.
The length of election leave is determined by the time between the polling station and the workplace. In most cases, it takes 1 to 3 working days.
An indefinite employment agreement is regarded employment with a probationary period during the first 12 months of the agreement, which may be terminated without notice or severance compensation during the probationary period, unless the parties agree differently.
After the initial 12 months, the employee cannot be terminated without the employer's prior written notice, which takes effect on the day the employee is notified.
These regulations apply to all types of terminations, including collective dismissals of non-workers. No notice is required when terminating employees.
A fixed-term contract may be terminated without notice by either the employee or the employer prior to the end date for a 'significant reason'. Significant reasons are occurrences that occur throughout the employer-employee relationship that make it hard to continue in good faith with the agreement. If there is a compelling justification, the employer is not required to provide compensation.
Additionally, the labor law states that upon termination, a fixed-term employment contract that includes a provision for early termination in compliance with the required severance computation is automatically converted into an indefinite-term employment contract.
If the work relationship is based on a fixed-term contract, either the employee or the employer can terminate it at any time without notice. However, an explanation is stated (e.g., breach of contract, failure to comply with contract requirements, etc.). If no justification is offered, the employee has the right to file a claim in court and get compensation for the earnings earned up to the contract's expiration date. The duration of the notice period depends on the length of time the employee has been working if the employment contract is for an indefinite term. There will be a one-month notice period for individuals who have worked for the company for one to two years. The notice period is two months for employees who have been with the company for two to five years. The notice period is three months for employees who have been with the company for five to ten years. The notice period is four months for employees who have worked for more than ten years.
There is no regulatory probationary period in Greece.
After one year of service, there is no requirement for severance pay. Severance pay for employees with more than a year of service varies by length of service and can be as much as 12 months' pay.
The standard workweek consists of forty hours spread over five days. Employers and employees may agree to a six-day workweek with a maximum of 48 hours per day. Over a four-month period, the workweek may not exceed an average of 48 hours, including overtime. Certain sectors may have their own set of rules. Between 10 p.m. and 6 a.m. is considered evening work. It is compensated at 125% of the basic rate and is limited to eight hours per day.
In Greece, overtime is divided into two categories. Iperergasia, or extra time, is limited to one hour per day and is compensated at a rate of 120% of the basic salary.
Overtime, or Iperoria, is limited to two hours per day and 120 hours per year. These hours are compensated at 140% of the regular salary. A permit from the Greek Ministry of Labor is required for work exceeding 120 hours per year.
The minimum wage in Greece is set at 650€ per month or 29.04€ per day.
Employees who worked for at least 50 days in the previous 15 months are generally eligible for free health and dental care through social security.
Some employers offer cars, health insurance, and/or housing allowances.
Corporations in Greece are taxed on their revenue both in Greece and abroad. Foreign businesses in Greece are solely taxed on revenue produced in Greece. In addition, there is a 100 percent advance payment of the current fiscal year's taxable amount, which is balanced by each fiscal year's financial statistics.
Greece's corporation tax rate has been fixed at 20% from the beginning of 2020. This decrease excludes the corporate income tax rate applicable to Greek credit institutions and Greek branches of foreign credit institutions, which will remain at 29 percent.
In Greece, income taxes is progressive. Individuals generating money in Greece must pay income tax, regardless of citizenship or location of permanent residence. In Greece, permanent citizens are taxed on their global income. Individuals in Greece are taxed on their earnings as employees as well as on earnings as self-employed individuals.
In the event of a permanent resident of Greece, the tax due is determined based on income generated both in Greece and abroad. An person whose sole source of income is a salary is not required to submit an annual return. Every month, the employer deducts tax from the employee and sends it to the tax authorities.
Those who earn an income between €0 – €20,000, the tax rate is 22%.
For an income between €20,001 – €30,000, the tax rate is 29%.
For an income between €30,001 – €40,000, the tax rate is 37%.
For an income beyond €40,001, the tax rate is 45%.
In Greece, there are three rates of value added tax. The standard interest rate is set at 24%. The lower rate is set at 13.5%. The super-reduced rate is set at 6%.
The standard rate applies to the following categories and to the following goods and services:
foodstuffs, water supplies, pharmaceutical products, medical equipment for disabled persons, children's car seats, books, newspapers, periodicals, admission to amusement parks, admission to cultural services (except theatre and concert tickets), admission to sporting events, cable TV, writers, composers etc., social housing, renovation and repairing of private dwellings, window cleaning and cleaning in private households, agricultural inputs, restaurant and catering services, use of sporting facilities, supplies by undertakers and cremation services, medical and dental care, bicycles, shoes and leather goods, clothing and household linen, alcohol beverages, lemonades and fruit juices, clothing, footwear, tobacco, computers, smartphones, E-books, household electrical appliances, furniture, jewels, telecommunication services, energy products (firewood and timber for industrial use), petroleum products (unleaded petrol, diesel fuel, LPG, heating oil, lubricants), motor vehicles, domestic passenger transport (air, sea, inland waterway, rail and road), international passenger transport (inland waterway, rail, road), bars and cafes, immovable property, treatment of waste and waste water, services supplied by lawyers, art, and collector's items and antiques.
The reduced rate applies to the following categories and to the following goods and services:
foodstuffs, water supplies, pharmaceutical products, medical equipment for disabled persons, agricultural inputs, hotel accommodation, social services, domestic care services, mineral water, energy products (natural gas, electricity, district heating), and hotels.
The super reduced rate applies to the following categories:
pharmaceutical products, newspapers, and admissions to cultural services (theatre and concert tickets).
VAT returns are filed quarterly or monthly, depending on whether the VAT payer keeps single or double-entry books. Those taxable individuals whose yearly turnover (minus VAT) from the provision of goods or/and services is less than €10,000 are exempt from VAT. Such individuals may elect to be exempt from VAT. The exemption does not apply to taxable persons who are not based on Greek territory.
Non-EU personnel must get a Type D visa before coming in Greece, which allows them to work for more than 90 days. Once an employee arrives in Greece, they must apply for a residence/work permit at the local municipal office or police station within 30 days. Work permits are normally valid for one year, and any renewal must be completed at least 60 days before the permit's expiry date.
Unless they are visa-exempt, business travellers to Greece normally utilize a local variant of the Schengen C Visa. The Schengen Area restricts visitors to 90 days in a 180-day period. Business trips should normally be restricted to a few days; the actual length of stay is determined on a case-by-case basis by Greek authorities.
The main work authorization categories are the Installation of Equipment Visa, which is appropriate for short-term installation, testing, and maintenance of supplied items by technical staff under a service agreement; the Work and Residence Permit for Senior Employees, which is appropriate for long-term work and residence under a local employment contract; the EU Blue Card, which is appropriate for highly skilled local hires; and the EU Intra-Company Transferee (ICT) Permit, which is appropriate for intra-company transfers.
Except in some situations, such as contracts for part-time labor, there is no necessity in Greece for employment contracts to be in writing. Even if no formal contract exists, the employer must produce a document that identifies the employer and employee, the employee's place of work, the employee's position and tasks, the date employment will begin, paid leaves, severance, salary, time of payment, and working hours. The paperwork must clarify whether the employee is on a fixed or indefinite contract and describe any collective labor agreement that sets working conditions.
Employers may conduct background checks on job seekers to get information needed to assess the candidate's abilities and suitability for the position.
There is no set length for assignments. This is usually indicated in the employment contract for fixed-term employments.
Euro (EUR)
Setting up your Greece subsidiary should begin with some thought about your business structure and where you want to incorporate. Different areas of Greece may have different cultural characteristics and legislation that may effect the subsidiary establishment procedure. Greeks prioritize face-to-face confrontations and personal interactions, and making a good first impression is essential. You must examine these variables before deciding on the optimal physical location for your company.
Greece offers various distinct entities from which to incorporate, and each will have an influence on how you set up your subsidiary in the nation. A private limited company, a limited liability corporation (LLC), a societe anonyme, partnerships, and other possibilities are available.
You should also take into account Greece's financial and regulatory environment, which has evolved since 2012. Greece now has an electronic platform for connecting government departments, a simpler form of an LLC, and cheaper registration fees. While this move made incorporation simpler, the government also approved increased taxes, pension reduction, and retirement system changes to boost the economy.
The following steps are involved in the formation of an LLC:
1. Meeting the standards for general capital and management
2. Completing documentation for natural people who are founders
3. Completing documentation for foreign-born founders
4. Submitting any further documents
5. Obtaining a Taxpayer Identification Number (TIN)
Subsidiary laws in Greece differ depending on the kind of organization you pick. A minimum capital of EUR 4,500 is required for an LLC, as well as at least one director. This individual is responsible for all corporate taxes, insurance payments to Greece, and contributions to the Greek private workers' fund.
The laws then differ according on your founders. Foreign legal persons must present a variety of papers, including Articles of Association with an apostille and that have been formally translated or validated by a consulate. They also need verification from a competent body in the founder's legal place of residence, as well as a certified copy of the authorisation document appointing a legal representative in Greece. To get a TIN, the applicant must additionally complete Forms M3 and M7.
