Greece - Market Entry and Business Opportunities

Greece, with its capital in Athens, boasts a population of approximately 10.4 million people as of 2022, predominantly Greek-speaking individuals. The ethnic makeup is largely homogeneous, with Greeks constituting around 93% of the populace, though small minority groups like Albanians, Macedonians, and Armenians also reside in the country. Despite a negative population growth rate of -0.5% in 2021, Greece covers a land area of approximately 131,957 square kilometres and is situated in south-eastern Europe. Bordered by Albania, North Macedonia, Bulgaria, and Turkey, Greece enjoys extensive coastlines along the Aegean, Ionian, and Mediterranean Seas. The currency used is the Euro, aligning with its membership in the Eurozone.

Economic Overview

Greece's economic growth trajectory is expected to moderate slightly from 2.4% in 2023 to 2.0% in 2024, with a subsequent rebound to 2.4% in 2025. While real consumption growth has been tempered by high living expenses and recent weather-related events, a recovery is anticipated as inflation recedes and employment opportunities expand, bolstering household purchasing power. Favourable conditions in the business landscape, increased disbursements of European Union funds, and a strengthening global economic outlook will contribute to enhanced investment and exports. However, the easing of headline inflation may face resistance from wage pressures due to labour shortages. Despite challenges, Greece's economy exhibited resilience, with GDP expanding by 1.3% in the first two quarters of 2023. Rising employment levels and moderating inflation supported private consumption, while declining unemployment rates contributed to upward wage pressures. However, environmental disasters like wildfires and floods underscore the need to adapt to climate change and expand property insurance coverage, posing challenges to growth, particularly in the manufacturing and agricultural sectors.

Bilateral Relations between India-Greece

Diplomatic relations between Greece and India were established in 1950, with reciprocal embassies opening in Delhi and Athens in 1950 and 1978, respectively. Over the past seven decades, the relationship has flourished, marked by significant milestones such as Greece's participation in the Delhi Declaration of 1985 and the signing of a Memorandum of Understanding on Defence Cooperation in 1998. Greece has consistently supported India's aspirations for a permanent seat in the UN Security Council and expressed solidarity on international platforms. Bilateral visits, including those by Greek Prime Ministers and Foreign Ministers, have strengthened ties, with dialogues focusing on areas like renewable energy, defence, and tourism. India has reciprocated these visits, reflecting mutual respect and shared interests, laying the groundwork for deeper cooperation in the future.

Taxation

Taxation in Greece encompasses both direct and indirect systems, with a progressive structure governing income taxation. Individuals, regardless of citizenship or permanent residence, are subject to income tax on earnings within Greece and overseas. Permanent residents are taxed on their global income. For employees, taxes are deducted by employers and remitted monthly to the tax authority, obviating the need for annual returns. Self-employed individuals contribute 27.1% of their income to social security, split between pension funding and the public health system. Additional percentages may apply for supplementary pension schemes, elevating total contributions to 38.1% of income. Corporate taxation applies to both domestic and international income, with foreign companies taxed solely on income generated within Greece. Corporations must make a 100% advance payment for the current fiscal year, reconciled based on subsequent financial data. These taxation frameworks ensure regulatory compliance and contribute to Greece's revenue generation.    

Financing Business in Greece

Financing a business in Greece involves accessing diverse funding sources tailored to enterprise needs and scale. Traditional bank loans are commonly utilized by businesses like manufacturing companies in Athens to upgrade facilities or invest in equipment. The European Investment Bank (EIB) provides support for projects across Greece, aiding infrastructure development in cities like Thessaloniki. The National Bank of Greece offers business loans catering to entrepreneurs and SMEs, enabling start-ups in regions like Crete to launch innovative products. European Structural and Investment Funds (ESIF) foster regional development, aiding companies like renewable energy firms in Patras to expand projects. Equity investments from venture capital firms or angel investors fuel growth for start-ups, while crowdfunding platforms such as Crowd Policy enable entrepreneurs, including social enterprises in Athens, to finance community projects or sustainable initiatives. These financing options reflect the diverse landscape available to Greek businesses, supporting their growth and development.

Top 10 Companies in Greece-2023

Rank	Company	Industry	Revenue in 2023 (USD)
1	OTE Group	Telecommunications	$ 4080 M
2	Star Bulk Carriers	Transportation	$ 1290 M
3	Danaos	Shipping	$ 950 M
4	GasLog	Energy	$ 890 M
5	Tsakos Energy Navigation	Energy	$ 720 M
6	Jumbo S.A.	Retail	$ 670 M
7	GasLog Partners	Energy	$ 350 M
8	Diana Shipping	Shipping	$ 280 M
9	Euroseas	Shipping	$ 180 M
10	Seanergy Maritime	Shipping	$ 140 M

Business Clusters in Greece

Greece features a diverse range of industry clusters that drive innovation and economic growth:

• Thessaloniki Technology Park: A technology hub fostering innovation in IT, biotechnology, and advanced manufacturing.
• Athens Start-up Ecosystem: Vibrant community supporting start-ups in technology, e-commerce, and digital services.
• Patras Science Park: Research and technology park focusing on ICT, renewable energy, and environmental technologies.
• Agri-food Clusters: Specialized in producing and exporting high-quality agricultural products like olive oil, wine, and dairy.
• Maritime Cluster: Thriving industry centered around shipping, logistics, and maritime services.
• Tourism Clusters: Regional clusters promoting collaboration among tourism businesses and attracting millions of visitors annually.
• IT Clusters: Emerging hubs in Athens and Thessaloniki focusing on software development and digital innovation.
• Healthcare and Life Sciences Clusters: Driving advancements in biotechnology, pharmaceuticals, and medical technology.
• Renewable Energy Clusters: Supporting projects and research in solar, wind, and biomass energy.
• Creative Industries Clusters: Fostering creativity, entrepreneurship, and cultural exchange in arts and design.
• Education and Research Clusters: Facilitating academic collaboration and research commercialization across disciplines.
• Food and Beverage Clusters: Promoting agri-food entrepreneurship and culinary tourism, showcasing Greece's culinary heritage.

Starting a Business in Greece

• Step 1: Choose a Business Name
• Step 2: Obtain Tax Identification Number (TIN)
• Step 3: Register Office Address
• Step 4: Draft Company Statutes
• Step 5: File Registration Form with GEMI
• Step 6: Enroll in EFKA (National Insurance Corporation)
• Step 7: Design Company Seal

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Best Locations to Set-Up Business in Greece

• Athens: The capital city offers central location, diverse talent pool, and access to government institutions and commercial centres.
• Thessaloniki: Greece's second-largest city with a thriving business community and proximity to key Balkan markets.
• Piraeus: Home to one of Europe's largest ports, Piraeus is vital for trade, logistics, and maritime industries.
• Heraklion (Crete): A growing economic hub with diverse sectors including tourism, agriculture, and technology.
• Patras: Strategic transportation hub connecting Greece with Europe, offering opportunities in logistics and manufacturing.
• Thessaly Region: Known for agriculture and emerging industries like renewable energy and agribusiness.
• Ioannina: Vibrant city focusing on education, healthcare, and technology, with opportunities for innovation and entrepreneurship.

Visa and Immigration

• Schengen Visa: Allows short-stay visits for up to 90 days within a 180-day period, suitable for meetings, conferences, and business exploration.
• Type D Visa (National Visa): For longer stays exceeding 90 days, required for setting up businesses, research, or long-term projects.
• Work Visa: Essential for individuals seeking employment or entrepreneurship in Greece, requiring sponsorship or business registration.
• Investor Visa: Available for significant investors in the Greek economy, enabling residency and potential citizenship.
• Start-up Visa: Facilitates entrepreneurs establishing innovative start-ups, offering residency and citizenship pathways.

In conclusion, Greece offers a promising market with its rich cultural heritage, strategic location, and economic potential. Despite recent challenges, Greece is resilient and undergoing a recovery phase. Its historical significance, natural beauty, and cultural allure attract businesses seeking growth. Situated at the intersection of Europe, Asia, and Africa, Greece provides access to diverse markets, fostering trade and investment opportunities. Government initiatives to attract foreign investment and streamline regulations enhance the business environment. EU membership expands market access, while infrastructure development opens avenues for investment. However, entering the Greek market requires understanding cultural nuances, regulatory frameworks, and local dynamics. Success hinges on adapting strategies to local preferences, building relationships, and navigating challenges. Despite obstacles, Greece offers ample opportunities for businesses to thrive and contribute to its economic resurgence.

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