Company Formation & Tax in Greece
A Mediterranean EU gateway back to investment grade — the IKE with no minimum capital, a flat 22% corporate tax and low dividend tax.
Greece has regained investment-grade status and modernised its company law, making the IKE one of the more accessible EU vehicles for foreign founders. It combines a flat 22% corporate tax with a low 5% dividend tax and a Mediterranean position bridging the EU, the Balkans and the Eastern Mediterranean.
Choosing an entity
The standard modern vehicle is the IKE (Idiotiki Kefalaiouchiki Etairia, private company), which can be formed with just €1 of capital and, using model articles, without a notary. Other forms are the EPE (€4,500) and the AE / société anonyme (€25,000, for larger ventures). Registration is with GEMI (the General Commercial Registry) via the business portal — typically one to three working days — after which the company registers with AADE (the Independent Authority for Public Revenue) for its tax number (AFM) and VAT, activates myDATA digital books, and registers with EFKA for social security. Owners can be 100% foreign.
Corporate tax and VAT
| Tax | Rate |
|---|---|
| Corporate income tax | 22% |
| Dividend withholding | 5% |
| VAT (FPA, standard) | 24% |
| VAT (reduced) | 13% / 6% |
Corporate income tax is a flat 22% (reduced from 24% in 2021), applying to IKEs, AEs, EPEs and most entities keeping double-entry books; certain credit institutions are taxed at 29%. Dividends carry a low 5% withholding tax. VAT (FPA) is 24% standard, among the higher rates in the EU, with reduced rates of 13% and 6%; note there is generally no domestic turnover threshold for mandatory VAT registration, so most companies register from the outset. Greece also operates a well-known tonnage-tax regime for shipping, and large groups fall within the OECD Pillar Two minimum-tax framework.
Frequently asked questions
What is the corporate tax rate in Greece?
A flat 22% (reduced from 24% in 2021), with a 5% withholding tax on dividends.
How much capital do I need for an IKE?
€1 — the IKE has effectively no minimum capital requirement.
What is the Greek VAT rate?
24% standard, with reduced rates of 13% and 6%; there is generally no turnover threshold, so most companies register from the start.
Official sources
- AADE — Independent Authority for Public Revenue
- GEMI — General Commercial Registry (businessportal.gr)
This guide is general information prepared by ARM Management and is current as at June 2026. It is not legal or tax advice; rules and thresholds change. Confirm against AADE, or with an advisor, before acting.
Set up in Greece with confidence.
ARM Management advises international companies on Greek entity formation, registration and tax compliance, alongside wider Mediterranean and EU structuring. Begin with a confidential conversation.