How to Open a Branch in Greece

Why open a branch in Greece: advantages

Greece presents a compelling case as a location for business growth. Opening a branch in Greece is a strategic decision that can combine cost advantages, regional reach, and operational efficiency.

Below are several reasons that underline the appeal of opening a branch in Greece:

• Strategic Geographic Location: Greece sits at the crossroads of Europe, Asia, and Africa, offering excellent logistical advantages. With access to the EU, Balkan, Middle Eastern, and North African markets, a branch in Greece can serve as a regional hub for distribution, service provision, or strategic coordination. Its well-developed port infrastructure, particularly the Port of Piraeus, is one of the largest in Europe and offers direct shipping routes to Asia and the Mediterranean.
• Favorable Fiscal Regime for Foreign Branches: Greece has taken significant steps in recent years to modernize and stabilize its tax system. For branches of foreign companies, the key fiscal advantages include:
  • Corporate Income Tax: As of 2025, the standard corporate tax rate is 22%, one of the more competitive rates in Western Europe.
  • Double Taxation Treaties: Greece has signed treaties with over 50 countries, allowing for favorable treatment of foreign income and reducing withholding taxes.
  • Taxation of Branches: Only Greek-sourced income is taxed, meaning foreign profits of the parent company remain outside the Greek tax base.
  • Incentives for Strategic Investments: Law 4635/2019 and Greece’s Development Law offer tax relief, grants, and fast-track procedures for branches involved in sectors like energy, logistics, tech, and tourism.
• Access to a Skilled, Multilingual Workforce: Greece boasts a well-educated population, with a high percentage of university graduates, especially in engineering, IT, and business. Many professionals speak English and other European languages fluently, making integration into international operations easier. Moreover, due to high levels of youth unemployment, companies find access to talent relatively easy and cost-effective.
• Competitive Labor Costs: Compared to Western Europe, labor costs in Greece are significantly lower while maintaining a high level of professional capability. The average gross monthly salary in the private sector is competitive, particularly for roles in customer service, finance, tech support, and logistics.
• Quality of Life and Business Environment: Greece offers an exceptional quality of life for expatriates and local employees alike. With a favorable Mediterranean climate, modern infrastructure, and a rich cultural landscape, cities like Athens and Thessaloniki provide both livability and strong business connectivity. The government has also introduced digitalization reforms, easing bureaucratic processes and improving the ease of doing business.

Establish a Branch vs. Opening a New Company

When a foreign business wants to establish a presence in Greece, two primary options are available: opening a branch or forming a subsidiary. While both approaches enable local operations and market access, they differ significantly in terms of legal status, liability, governance, tax treatment, and operational autonomy.

A branch is not a separate legal entity, it is an extension of the parent company operating in Greece. It shares the same legal personality, meaning all actions and liabilities of the branch are ultimately attributed to the parent.

In contrast, a subsidiary is a new Greek company, usually in the form of a Private Company (IKE) or a Societe Anonyme (AE). It is a distinct legal entity, governed by Greek corporate law, with its own rights, obligations, and liability shield.

A subsidiary has a greater degree of operational and legal autonomy. It can make independent business decisions, enter contracts, and own assets in its name. The parent company controls it through shareholding but is not directly liable for its day-to-day obligations.

A branch, on the other hand, acts under the direct control and authority of the parent. It must follow the parent company’s bylaws and cannot act beyond its delegated powers. It also cannot enter into strategic partnerships or make structural changes independently.

From a legal standpoint, a branch must register with the General Commercial Registry (GEMI) and the Greek Tax Authority (AADE), but does not require capital stock or founding shareholders. A subsidiary must be fully incorporated under Greek law, which involves drafting articles of association, appointing directors, and complying with corporate governance rules.

From a fiscal perspective, branches are taxed in Greece only on their Greek-sourced income, and their profits are usually repatriated to the parent without additional dividend withholding. Subsidiaries are taxed on their worldwide income if they are tax residents of Greece and must pay withholding taxes on dividends and royalties when remitting profits abroad (subject to treaty relief).

With a branch, the parent company is fully liable for all debts and obligations arising from Greek operations. This creates a higher legal and financial risk for the parent. A subsidiary enjoys limited liability: creditors can only pursue the subsidiary’s assets, not those of the parent, barring extraordinary legal circumstances.

Here is a summary table of the main differences between a branch and a subsidiary in Greece:

How to open a branch in Greece

While a branch is not legally distinct from its parent company, it must still comply with Greek laws and regulatory frameworks, particularly in relation to registration, taxation, and representation.

1. Board Resolution from the Parent Company

To open a branch, the parent company must formally authorize the establishment of a branch in Greece by issuing a Board of Directors’ resolution, specifying the scope of business to be conducted in Greece and appointing a legal representative and assigning their powers. This resolution must be officially certified and translated into Greek, as it becomes a foundational part of the branch’s file with Greek authorities.

2. Appointment of a Legal Representative in Greece

The branch must operate under the responsibility of a local legal representative, often referred to as the branch manager.

The branch manager will:

• Act on behalf of the parent company in Greece.
• Ensure compliance with Greek tax, labor, and corporate laws.
• Represent the branch before administrative and judicial authorities.

This individual can be a Greek or foreign national but must have a Greek Tax Identification Number (AFM) and usually a Greek residence.

3. Documentation and Legalization

Greek authorities require detailed documentation proving the legitimacy and structure of the parent company. All documents must be notarized, apostilled (if from a Hague Convention country) or legalized, and officially translated into Greek (either by a lawyer or an official translator).

The required documents are:

• Articles of Association and any amendments.
• Certificate of Good Standing or equivalent from the parent company’s home registry.
• Board Resolution establishing the branch.
• Power of Attorney granting authority to the legal representative.

4. Registration with GEMI (General Commercial Registry)

Like any other company, a branch must register with GEMI, the central registry for all companies operating in Greece. After submitting all documentation via a Greek lawyer, paying the registration fee and getting approved, the branch will receive a GEMI number, which is required for all official transactions and tax procedures.

5. Tax Registration with the AADE (Independent Authority for Public Revenue)

Before beginning operations, the branch must obtain a Greek Tax Identification Number (AFM) and be registered with the tax authority. The branch will be subject to Greek corporate income tax on profits earned in Greece, and must file periodic tax returns like any domestic company.

Necessary steps are:

• File tax registration through the competent DOY (local tax office).
• Appoint a local tax representative if the legal representative resides abroad.
• Register for VAT, if required, and pay stamp duties where applicable.

6. Opening a Bank Account

A Greek bank account is necessary for operating expenses, payroll, and tax payments.

To open a bank account you will have to provide GEMI registration, tax number, and proof of legal representative identity. Some banks may require in-person meetings and detailed KYC documentation.

This step can be time-consuming due to strict banking regulations and anti-money laundering compliance, especially for non-EU companies.

7. Registration with Social Security (EFKA)

If the branch hires employees, it must be registered with EFKA, Greece’s unified social security institution.

Labor law compliance is mandatory and closely monitored; non-compliance with employment or insurance obligations can result in fines.