Tax Laws
Changes in Greece’s tax legislation have continued in recent years, focused mainly on implementing government reforms, enhancing the collection of public revenues, adopting EU rules and complying with commitments under international treaties.
Tax issues include:
Transfer of shares – Capital gains arising from the transfer of shares in non-listed companies may be subject to taxation, depending on whether the transferor is an individual or a legal entity and the circumstances of the transaction. For individuals, a capital gains tax rate of 15% may apply, subject to relevant exemptions and conditions. In the case of legal entities, capital gains are generally included in taxable business income and subject to the applicable corporate income tax rate.
Corporate income tax rate – The corporate income tax rate for public limited companies, limited liability companies, private capital companies, Greek branches of foreign corporations and, in general, companies that maintain double-entry accounting books has been gradually reduced over time. The applicable rate depends on the relevant tax year and any specific provisions or exemptions.
Taxation on dividends – Profits distributed by Greek companies may be subject to dividend withholding tax. The applicable rate depends on the relevant tax legislation, the recipient’s circumstances and any exemptions or double taxation treaty provisions.
Other areas which can be addressed by independent lawyers and tax specialists include transfer pricing, losses incurred abroad, deductibility of interest, exit tax rules and cross-border arrangements.
Competition Law
The Hellenic Competition Commission (HCC) enforces merger control provisions regarding the protection of free competition.
The Greek merger control system provides for mandatory pre-notification to the HCC where participating enterprises meet the applicable turnover thresholds. These requirements take into account the aggregate worldwide turnover of the participating enterprises and their national (Greek) turnover. The relevant notification deadlines and thresholds should be assessed against the legislation applicable at the time of the proposed transaction.
There is generally no post-notification obligation for mergers that do not meet the applicable notification thresholds under Greek law, although other competition law requirements may still apply.
Following many years of recession and worrying levels of unemployment, Greece has focused on economic recovery and stability, along with new investments, new business opportunities and the creation of new jobs.
Despite the recession and the effects of the COVID-19 pandemic, the private sector has shown it is capable of not just survival but also moving forward and achieving substantial growth.
Our Service Provision
Tsaks Consulting and its independent professional partners can provide assistance and access to specialist advice on laws covering mergers and acquisitions in Greece, along with developments in corporate and takeover law and their impacts. Corporate governance reforms, for example, are intended to strengthen transparency and investor confidence in the Greek stock market.
Other areas under consideration include measures to increase the competitiveness of Greek enterprises in their daily operations, such as fast-track permit procedures.
While the business environment in Greece remains, to a certain extent, characterised by bureaucracy, there are initiatives to reform the framework for strategic investments. The privatisation programme, involving the Hellenic Republic Asset Development Fund and the relevant state asset management authorities, continues to provide opportunities for investors.
Fundraising for Acquisitions
As acquisitions can either involve an exchange of shares or cash consideration, financing normally follows two alternatives: self-funding or bank financing, which can be subject to lending conditions and market availability. Changes in labour laws and working hours can also affect prospective investors in Greece.
How We Can Assist
Our understanding of market trends and changes in laws concerning international collaborations is underlined by a professional, bilingual approach which centres on partnerships, understanding and attention to the finest detail.
Our partners include experienced independent lawyers and tax experts, all specialised in dealing with Greek and international business developments. They are well-versed in providing full details and support on every aspect of mergers and acquisitions, from ongoing legal changes to financial backing.
Tsaks Consulting provides business consultancy, administrative coordination and professional introductions, while specialist legal, taxation and financial advice is provided by appropriately qualified independent professionals.
Contact our team to discuss your project or acquisition with one of our partners.
Important Information
Tsaks Consulting Greece is a business consultancy with an office in Athens and is not a law firm, accounting practice or regulated investment adviser. Legal, taxation, accounting and other regulated professional services are provided by appropriately qualified independent professionals within our network. Information on this website is general in nature and does not constitute legal, tax, accounting or financial advice.