Joint Ventures in Greece

What are joint ventures in Greece, and how do they work?

A joint venture is a collaborative business arrangement between two or more independent parties (whether individuals or companies) who agree to combine their resources, expertise and capital to carry out a specific project or business activity.

A Greek joint venture is typically established for:

• a defined purpose or project, such as the construction of a public work, the development of an energy installation, or the management of a tourism facility
• a long-term business collaboration, especially between local and foreign investors seeking to share risks and benefits in the Greek market.

What distinguishes a joint venture from other forms of cooperation is that it establishes a shared operational and financial framework without necessarily creating a new company. The participants remain legally independent yet act collectively for the purposes of the joint undertaking.

Joint ventures in Greece are governed primarily by:

• Articles 741–784 of the Greek Civil Code, which regulate partnerships (εταιρικές σχέσεις) and joint ventures (κοινοπραξίες).
• Tax legislation, which recognizes the κοινοπραξία as a distinct taxable entity even if it does not have separate legal personality.
• Law 4412/2016 on public procurement, implementing EU Directive 2014/24/EU. This law expressly allows contractors to form joint ventures to bid collectively for public projects.
• Company Law 4548/2018 (Société Anonyme), Law 4072/2012 (Private Companies, I.K.E.), and Law 3190/1955 (Limited Liability Companies, E.P.E.) — these regulate corporate-type joint ventures where a new legal entity is formed.

The Greek legal system provides for two main models of joint ventures: contractual and corporate.

In both cases, the joint venture:

• keeps separate accounting books
• has its own bank account
• issues invoices
• files VAT and income tax returns
• distributes profits according to the participants’ agreed percentages

Contractual (Non-Corporate) Joint Venture

The most traditional and widely used form of joint venture in Greece is the contractual joint venture, which is especially common for large public or private projects.

Based on a contract (the joint venture agreement) between the participants, it does not create a separate legal entity under company law. Nevertheless, it must be registered with the Greek tax authorities (AADE) and will receive its own tax identification number (AFM).

A contractual joint venture must keep its own accounting records and file tax returns as if it were a legal entity.

Participants are usually jointly and severally liable for the joint venture’s obligations, unless otherwise agreed and accepted by third parties. Profits or losses are allocated to the partners according to the contract.

This form is especially common in:

• construction and infrastructure projects
• energy developments
• EU-funded consortia
• temporary collaborations that dissolve upon project completion

Contractual joint ventures must register with AADE to obtain a tax identification number (AFM). If their activities require commercial status or invoicing, they may also register with the General Commercial Registry (G.E.MI.).

Corporate Joint Venture

A corporate joint venture is a business collaboration formed by establishing a new legal entity that is jointly owned and controlled by two or more independent parties (whether individuals or legal entities) for the purpose of conducting a specific business activity or long-term enterprise in Greece.

This new company has full legal personality, which is separate from that of its shareholders.
Liability is limited to each participant’s contribution, and governance follows the articles of association and relevant company legislation.

Corporate joint ventures are usually chosen for long-term cooperation involving substantial ongoing business activities rather than single projects.

Corporate joint ventures must be fully incorporated and registered with the G.E.M.I., and must comply with all applicable corporate governance, financial reporting and tax obligations of Greek companies.

Joint Ventures in Greece: Advantages

In recent decades, joint ventures have played a central role in the Greek economy, particularly in sectors such as construction, energy, tourism, real estate and infrastructure. Cooperation between Greek and foreign partners is essential in these sectors to access local expertise, permits and capital.

These arrangements enable Greek companies to grow, submit competitive bids, and distribute risk while retaining their independence.

Joint ventures enable Greek companies to pool resources and expertise to:

combine technical qualifications and financial capacity (especially crucial in public procurement)
share specialized equipment or personnel
and collaborate on large-scale projects they could not undertake alone

A joint venture structure enables participants to share financial and operational risks, which is particularly valuable in capital-intensive sectors such as energy, shipping, real estate development and industrial production.

Each partner’s exposure can be limited to their agreed contribution or participation ratio.

Through collaboration, companies can expand their market reach, increase their bidding power in tenders and strengthen their position against larger competitors.

Joint venture agreements offer considerable flexibility: partners can freely define management roles, profit allocation, capital contributions and exit conditions, and the structure can be tailored to short-term projects (contractual joint ventures) or long-term operations (corporate joint ventures).

Step-by-Step Guide to Opening a Joint Venture in Greece

A joint venture is one of the most effective ways for businesses to collaborate, share expertise, and participate in major projects. Depending on the scale and purpose of the partnership, Greek law offers two main options: the contractual joint venture and the corporate joint venture.

The first step is deciding on the structure:

• For one-off projects or tenders with a defined duration, the contractual model is faster, simpler, and more cost-effective.
• For ongoing operations, investment platforms, or ventures that require limited liability and a strong governance framework, the corporate model is more appropriate.

Both structures are fully recognized under Greek law, transparent for tax purposes, and adaptable to partnerships between Greek and foreign entities. Careful planning, a well-drafted agreement, and clear alignment between the partners’ objectives are the keys to success.

Open a Contractual joint venture (non-corporate)

Below is a practical, step-by-step roadmap for setting up a contractual joint venture in Greece:

1. Define the collaboration. First, the partners agree on the project or business objective, the duration of their cooperation, and each partner’s contributions—capital, equipment, know-how, or personnel.
2. Draft and sign the joint venture agreement. This document outlines the terms of the partnership, including profit and loss allocation, management structure, voting rights, liability, and exit mechanisms. It must be clear and comprehensive because it serves as the governing instrument of the venture.
3. Obtain tax identification numbers (AFM). Every participant must have a Greek tax number. Foreign companies that do not yet have one must appoint a local tax representative.
4. Register the joint venture with the tax authority (AADE). The venture itself receives its own tax number and, if necessary, VAT registration. From this point forward, the joint venture is recognized as a separate taxpayer for accounting and tax purposes.
5. Open a dedicated bank account. All income and expenses related to the joint venture must be managed through this account. Greek banks will verify company and beneficial ownership information as part of standard compliance checks.
6. Set up accounting and reporting. The joint venture must maintain separate accounting records, issue invoices in its own name, and file VAT and corporate tax returns. Profits are taxed at the standard corporate rate (currently 22%) before being distributed to the partners according to their agreed-upon shares.

Once these steps are completed, the joint venture can begin its activities. When the project concludes, the joint venture will be dissolved and any remaining assets or obligations will be settled among the participants.

Open a corporate joint venture

Partners who wish to cooperate on an ongoing basis or operate a business independently from their existing entities may establish a corporate joint venture. In this case, a new company is formed under Greek law and is owned by all participants. This new company has full legal personality and limited liability, making it ideal for long-term operations and investments.

The creation process generally follows these steps:

1. Choose the legal form. Most corporate joint ventures are incorporated as:
   • a private company (IKE) under Law 4072/2012, which is valued for its flexibility
   • a Société Anonyme (A.E.) under Law 4548/2018, which is preferred for larger ventures or those requiring a board of directors.

1.  
2. Prepare the founding documents. The partners will draft the articles of association, which define the company’s purpose, capital, governance, and management rules. These articles are usually complemented by a separate shareholders’ agreement detailing decision-making, funding, profit distribution, and exit rights.
3. Register the company. Incorporation can be done through the one-stop service (e-ΥΜΣ) or via a notary. The new company is automatically registered with the General Commercial Registry (G.E.M.I.) and the tax authority (A.A.D.E.), and receives a registration and tax identification number.
4. Open a bank account and deposit capital. The company’s initial share capital is paid into its Greek bank account. Banks will request identification documents and beneficial ownership information for compliance purposes.
5. Complete legal and regulatory registrations. The company must file its ultimate beneficial owner (UBO) details under the Greek anti-money laundering framework (Law 4557/2018) and register for value-added tax (VAT) if applicable.
6. Set up accounting and operations. Appoint an accountant to maintain books, file periodic tax returns, and ensure compliance with electronic invoicing (myDATA). If employees are hired, the company must register as an employer with the Greek social security system (EFKA).

After incorporation, the company operates like any other Greek business. It can sign contracts, acquire assets, and participate in tenders or investment programs. As a full legal entity, the partners’ liability is limited to their contributions, and profits are distributed as dividends.

Opening a Joint Venture in Greece: Costs and Timeframe

The time and money required to open a joint venture in Greece depend on the chosen structure, the project’s complexity, the number of partners involved, and the sector of activity.

A contractual joint venture is faster and less expensive to set up.

On average, the total setup time, from preparation to operational readiness, is 2 to 4 weeks. It can often be established for under €5,000, excluding sector-specific licensing or bank guarantees required for public projects.

A corporate joint venture involves incorporating a new company that is jointly owned by the partners. Therefore, when considering the time needed to set it up, you must factor in things like drafting articles of association and a shareholders’ agreement, incorporating the company, registering it with the General Commercial Registry (G.E.M.I.) and the General Organization of Public Revenue (AADE), opening a bank account, depositing capital, and filing beneficial ownership.

On average, the setup process takes 3 to 5 weeks, depending on document preparation and banking formalities.

In total, forming a corporate joint venture in Greece typically involves €3,000–€8,000 for a private company or €6,000–€12,000 for a Société Anonyme, excluding share capital and sector-specific permits.

Advantages of a Joint Venture for Foreign Participants

One of the greatest advantages of joint ventures is the ability to combine local and international strengths by leveraging complementary capabilities.

• Greek partners contribute local knowledge, networks, regulatory experience, and access to land or permits.
• Foreign partners contribute capital, technology, operational expertise, and brand reputation.

Together, companies can compete more effectively in a market that rewards both local knowledge and international standards.

For foreign investors, the Greek joint venture model offers strategic and practical advantages.

• Market access: Gain immediate entry into the Greek market and the wider EU market while relying on a partner who understands local regulations, business culture, and bureaucracy.
• Regulatory Navigation: Greek administrative procedures, especially those related to licensing, energy, and construction, can be complex. A local partner can help you navigate these procedures efficiently.
• EU and Regional Integration: As an EU member state, Greece offers access to a large single market, free movement of capital, and funding from EU programs that joint ventures can utilize.
• Cultural and Political Credibility: Collaborating with a reputable Greek partner can enhance your credibility with public authorities, regulators, and suppliers.
• Tax and Treaty Benefits: Greece has double taxation treaties with over 50 countries, which reduce withholding taxes and protect foreign investors from double taxation when participating in Greek ventures.

Joint ventures offer foreign companies several other important strategic advantages, listed below.

Access to Public and EU-Funded Projects

According to Law 4412/2016 on public procurement, which transposes EU Directive 2014/24/EU, joint ventures are explicitly recognized as eligible participants in public tenders.

This allows partners to combine their technical and financial qualifications to meet the eligibility criteria that they could not satisfy independently, which is particularly relevant for construction, infrastructure, and environmental projects that are often co-financed by the European Union or international institutions.

Market Entry Without Full Acquisition

For foreign companies, a joint venture provides a strategic route of entry into the Greek market, avoiding the cost and complexity of acquiring a local business.

It enables gradual market familiarization, brand establishment, and relationship-building with Greek stakeholders, which is often a prerequisite for success in a relationship-oriented business environment.

Alignment with Investment Policy

Greece actively promotes foreign direct investment (FDI) through institutions such as Enterprise Greece, and joint ventures are considered a preferred method of international collaboration.

Joint ventures are eligible for investment incentives under Law 4887/2022, which provides tax relief, grants, and subsid

Entering the Greek Market: Joint venture vs. M&A

When exploring opportunities in Greece, foreign companies typically face a strategic choice between two main market entry routes: forming a joint venture with a local partner or merging with or acquiring an existing Greek business.

Joint ventures are often preferred by investors who wish to enter the Greek market gradually, participate in specific projects, or benefit from a local partner’s knowledge of regulations, networks, and operating conditions.

By contrast, an M&A represents a direct investment strategy through which a foreign company acquires full or majority ownership of a Greek enterprise. This route offers complete control and a long-term presence, but it typically involves more complex due diligence, higher transaction costs, and a longer completion timeline.

The table below highlights the key differences between joint ventures and mergers and acquisitions in Greece. It helps investors evaluate which structure best aligns with their commercial objectives, risk appetite, and time horizon.