Changes in Greece’s tax legislation continued last year, focused mainly on implementing reforms agreed by the government within negotiations for financial support and enhancing the collection of public revenues. They also aimed to adopt EU rules and to comply with commitments under international treaties.
Tax issues include:
Transfer of shares – From 1 January 2014, any capital gain from a transfer of shares of non-listed companies is subject to a 15% if the transferor is an individual. In the case of legal entities, the capital gain shall be added to the gross income with any profit from the business activity subject to 22% tax rate for fiscal years from 2021 onwards.
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, any company that maintains double-entry accounting books has been gradually reduced to 22%.
Taxation on dividends – For profits distributed from 1 January 2020 a tax of 5% is applicable.
Other areas which can be addressed by lawyers and tax specialists include transfer pricing, losses incurred aboard, deductibility of interest, exit tax rules and cross-border arrangements.
The Hellenic Competition Commission (HCC) enforces merger control provisions regarding the protection of free competition.
With a 30-day deadline, the Greek merger control system provides for pre-notification to the HCC where participating enterprises have an aggregate worldwide turnover exceeding €150 million and at least two of them each has a national (Greek) turnover of at least €15 million.
There is no post-notification obligation for minor mergers under Greek law.
Following many years of recession and worrying levels of unemployment, Greece is in recovery mode, with stability of the Greek economy a prime target, 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 to moving forward and to substantial growth.
Our service provision
Tsaks Consulting partners can provide in-depth details of all laws covering Merges and Acquisitions in Greece, along with developments in corporate and takeover law and their impacts. A relatively new law, for example, relates to corporate governance rules which could lead to a stronger 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 large extent characterised by bureaucracy, there are initiatives to reform of the framework for strategic investments. The privatisation programme, run by the Hellenic Republic Asset Development Fund, is ongoing.
Fundraising for acquisitions
As acquisitions can either involve an exchange of shares or a cash consideration financing normally follows two alternatives: self-funding or bank financing which has been very restricted recently. Changes in labour laws and working hours can also effect 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 leading 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 Merges and Acquisitions, from ongoing legal changes to financial backing.
Contact our team to discuss your project or acquisition with one of our Partners.