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Greece Economy Overview
Currency
Euro (EUR)
Working hours
40 hours/week
Public/bank holidays
14 public holidays
Capital
Athens
Languages
Greek
Population
10.3 million
Minimum hourly salary
~EUR 4.83
Tax year
1st Jan – 31st Dec
Date format
DD/MM/YYYY
Misclassification penalties
Employers in Greece who misclassify employees as independent contractors may face substantial penalties, including back taxes, fines, and potential legal action.
Fun fact
Greece is the birthplace of democracy, with the concept of citizen participation in government first established in ancient Athens around the 5th century BC.
In recent years, Greece has undergone structural reforms that have led to increased transparency, simplified bureaucracy, and significant economic transformation.
Positioned in a strategic location at the heart of Europe with strong connections to the Western Balkans, the Middle East, and North Africa, Greece is also a member of the EU, the Euro single currency, and the visa-free Schengen area. This gives it seamless access to the world’s largest trading bloc, with a market of over 440 million people across 27 countries.
Greece enjoys a well-educated and highly skilled labor force of approximately 4.5 million people and has advanced infrastructure, which adds to its advantages as a logistical hub for land, sea, and air transport.
While tourism is the key industry for much of Greece, the territory also has significant interests in energy, information technology, real estate, agriculture, and life sciences. The average monthly salary of around EUR 1,300 (approx. $1,500) is low compared to that of wider Europe, allowing for the creation of a cost-effective workforce in an enormous continental market.
Overview of Greece's Economy
Greece, a country with a rich historical and cultural heritage, has experienced significant economic transformations over the past few decades. From a severe economic crisis in the 2010s to a steady recovery and structural reforms, Greece’s economy has been through a turbulent yet transformative journey.
In 2023, the GDP of Greece rose by 2% to over $238 billion, putting it somewhere between Hungary and Portugal in the European ranking. Aside from 2020, when the global economy was interrupted by the COVID-19 pandemic, Greece’s GDP has risen every year since 2017.
As of today, Greece’s economic outlook reflects resilience, marked by a mix of challenges and opportunities. Key sectors such as tourism, shipping, and agriculture play a pivotal role in driving economic activity, while the country is also working on enhancing its competitiveness in other areas like renewable energy, digital transformation, and manufacturing.
Greece’s Economic Structure: Key Sectors and Indicators
| Sector | Contribution to GDP | Key Highlights |
|---|---|---|
| Tourism | ~20% | Greece is a world-leading tourist destination, attracting over 30 million tourists annually. The sector is crucial for employment and foreign exchange. |
| Shipping | ~7% | The Greek merchant navy is the largest in the world, controlling about 20% of global shipping capacity. |
| Agriculture | ~4% | Known for olives, olive oil, wine, and feta cheese, agriculture remains vital for rural employment, though its share of GDP has declined. |
| Energy | Growing | Greece is transitioning to renewable energy, particularly solar and wind. The country aims for 35% of its electricity to come from renewables by 2030. |
| Services | 67% | The services sector, especially financial services, real estate, and professional services, is a large contributor to the economy. |
| Manufacturing | ~10% | Greece’s manufacturing sector, though smaller, is seeing growth in pharmaceuticals, food processing, and industrial products. |
In 2023, Greece’s economy is making solid progress, growing at a steady pace of around 2-3% each year. Inflation, which was a major concern after hitting 9.6% in 2022, has now eased to a more manageable 4.5%, offering some relief in terms of living costs. Unemployment, though still high at about 11%, is slowly but surely improving.
The country’s public debt remains a heavy burden, with a debt-to-GDP ratio of roughly 170%, but thanks to favorable terms with the EU, Greece is finding it easier to manage repayments. On the upside, foreign investments are flowing in, especially in tech, infrastructure, and tourism, showing that investors see real potential in Greece’s future growth.
Major Trends and Challenges
- Post-Crisis Reforms: After the severe economic crisis of 2010-2015, Greece implemented a series of structural reforms, including pension system overhauls, labor market flexibility, and privatizations. These reforms have improved fiscal management and enhanced investor confidence.
- EU Support and Recovery Funds: Greece has benefited from significant EU funds aimed at supporting infrastructure, green energy, and innovation. The country is set to receive about €30.5 billion under the EU Recovery and Resilience Facility (RRF).
- Tourism Dependency: Tourism has been both a blessing and a curse. While it generates substantial revenue, it also makes the economy vulnerable to global shocks like the COVID-19 pandemic. Diversification is a key goal for Greece moving forward.
- High Public Debt: Despite efforts to reduce debt, Greece remains one of the most indebted nations in Europe. While debt servicing costs have decreased due to favorable terms with the EU, managing this burden remains a long-term challenge.
- Energy Transition: Greece is increasingly focusing on renewable energy to reduce dependence on fossil fuels. Investment in solar and wind energy is on the rise, and the country is positioning itself as a future hub for clean energy production in Southeast Europe.
Greece’s economic outlook is defined by resilience, reform, and recovery. While the economy has stabilized since the 2010s, there are still significant hurdles, such as high unemployment and public debt, which require careful management.
On the positive side, sectors like tourism and shipping continue to thrive, while Greece’s increasing focus on technology, renewable energy, and digital transformation point toward a more diversified and robust economic future.
The country’s challenge will be to balance short-term recovery efforts with long-term structural changes that can sustain growth in a competitive global landscape.
Taxes
Employer Tax: 24.81%
Social Security (EFKA)
22.54%
Supplementary Insurance
2.27%
Employee Tax: 15.33%
Social Security (EFKA)
15.33%
Income tax
Greece has a progressive income tax system. The rates are as follows:
Gross Income (EUR)
0 – 10,000
10,001 – 20,000
20,001 – 30,000
30,001 – 40,000
40,001 – 60,000
More than 60,000
Tax Rate
9%
20%
26%
34%
39%
44%
Business Regulation in Greece
As with all EU member countries, doing business in Greece is bound by both Europe-wide regulations and the domestic guidelines set out in the Greek constitution and the Code of Individual Employment Laws.
These include the establishment of a standard 40-hour, 5-day working week with overtime capped at three hours per day and 150 hours across the whole year. Overtime hours must also be paid at a minimum of 120% of regular wages or 125% when working overnight.
Employees in Greece are also legally guaranteed several forms of paid absence, including public holidays, sick leave, maternity leave, and parental or compassionate leave. Annual leave starts at two days for each month of the first year before rising gradually to 25 days after ten years of service.
Employers are expected to make several forms of social security payments, including 13.3% of an employee’s gross salary toward pension insurance, 7% toward health insurance, and 1.65% toward unemployment insurance. General business taxes must also be paid in the form of 22% corporate income tax and 24% VAT.
In both circumstances, incentives are in place to reduce these payments in certain sectors or when the company creates increased employment and new innovations.
Benefits of Doing Business in Greece
Today, there are many benefits to doing business in Greece. The cost of labor, real estate, and living in the region are all well below the European average, the infrastructure and banking services are excellent, and the labor force is well-educated and highly skilled.
Greece enjoys a liberal regulatory framework, low taxation, and generous incentives for investors, particularly in those industries it is most eager to develop. It is a growing economy with opportunities in diverse fields, from tourism and agriculture to IT and energy.
It also offers easy access to a domestic market of 10 million people and the extended free market of the EU, which totals over 440 million people across 27 countries, including economic giants such as France, Germany, Italy, the Netherlands, and Spain.
For a territory that combines low costs with a progressive attitude to business and a vast potential market, anyone looking to do business in Europe should consider Greece.
Business Expansion Options in Greece
The business environment in Greece is undergoing a period of transformation and its policies and regulations are constantly being amended and tweaked to create a more straightforward and streamlined registration process.
Several kinds of entities can be established in Greece but two of the most common are limited liability companies (LLC) and branch offices. Each of these has its advantages, challenges, and requirements for registration.
Greece Employer of Record (EOR)
An Employer of Record in similar to a PEO, but means that the third-party HR provider acts as the legal employer of your Greece workforce. The Greece EOR takes care of all payroll, HR and employment compliance on behalf or international companies. In some cases Greece EORs will also provide Greece recruitment services or visa support.
Recruitment Agencies
Recruitment agencies in Greece help businesses expand by connecting them with skilled local talent across various industries.
Remote People provides recruitment solutions that simplify hiring and ensure compliance with Greek labor laws.
For businesses looking to grow in Greece, Remote People offers the expertise and resources needed to build a local workforce quickly and effectively, making it a practical solution for market expansion.
Greece Professional Employer Organization (PEO)
Despite a historical reputation for inflated bureaucracy, Greece has made huge steps in simplifying the process of registering and establishing a business, and it’s now possible to incorporate an LLC in just a few weeks or a branch in around four.
While this can be done independently, working with a specialist intermediary can be helpful. This is particularly the case when looking to hire and manage workers for the business in Greece. Services such as a Professional Employer Organization (PEO) or an Employer of Record (EOR) can be of great assistance in these situations.
A PEO is a human resource management service that can be contracted to help recruit and manage all local labor, acting as the co-employer of your Greece workforce.
Subsidiary Incorporation
An LLC in Greece can carry out any form of business except banking and insurance, and its partners will be protected by liability limited to the amount of their investments.
An LLC can be established with just one shareholder and one director of any nationality, provided it can prove a minimum share capital of EUR 4,500. The directors of an LLC are accountable for paying taxes and making social security contributions to both the state and the private worker’s fund.
If the foreign parent company is based in another EU country, then it may be exempted from withholding taxes. Creating an LLC involves registering a unique name with the Chamber of Commerce and Industry, submitting a registered office address, and acquiring a valid Greek Tax Identification Number.
Branch Registration
An alternative to an LLC is a branch. This can be created after providing a certificate showing the share capital it holds abroad matches the minimum share capital required for the equivalent company type in Greece. The company then files for approval before being granted authority to operate.
Branches are subject to 22% corporate income tax and a withholding tax of 25%. A branch is required to have at least one shareholder and one director who are Greek residents. It is not considered a separate legal entity from its parent company and can only carry out activities in line with those of the wider business.
Business Opportunities in Greece
Greece, a nation steeped in history and blessed with breathtaking natural beauty, has emerged as a beacon of opportunity for astute investors and intrepid entrepreneurs.
The country’s strategic location at the crossroads of Europe, Asia, and Africa, coupled with its ongoing economic revitalization and government initiatives to foster growth, has created a landscape ripe with potential across various sectors.
As Greece continues to chart a course towards sustainable development and innovation, it beckons to those with the vision and resolve to seize the abundant opportunities that lie within its borders.
| Opportunity | Rationale |
|---|---|
| Tourism | Greece’s stunning natural beauty, iconic historical sites, and vibrant culture continue to draw millions of visitors annually. The tourism sector presents opportunities for businesses involved in hospitality, travel services, and unique experiences that showcase the country’s rich heritage. |
| Renewable Energy | With abundant solar and wind resources, Greece is well-positioned to become a leader in renewable energy. The government’s commitment to increasing the share of renewables in the energy mix and attracting foreign investment in the sector creates significant opportunities for companies involved in solar, wind, and energy storage projects. |
| Real Estate | Greece’s property market offers attractive prospects for investors seeking low-cost, high-potential opportunities. The country’s efforts to streamline property registration and ownership processes, coupled with the growing demand for tourist accommodations and residential properties, make real estate an appealing sector for investment. |
| Technology and Innovation | Greece is actively fostering a thriving startup ecosystem and promoting digital innovation. The government’s initiatives, such as funding programs and the introduction of tech visas, have created a supportive environment for technology companies. Opportunities exist in areas such as software development, e-commerce, and financial technology (fintech). |
Navigating the intricacies of the Greek market requires a keen understanding of the country’s unique strengths and cultural nuances.
By leveraging Greece’s rich heritage, skilled workforce, and supportive business environment, companies can position themselves at the vanguard of the country’s economic resurgence.
Adapting to the evolving landscape and embracing innovation will be key to seizing the opportunities that arise in this dynamic market.
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