GREECE Law and Practice Contributed by: Ioannis Charalampopoulos, Petros Machas and Alexandros Saratsiotis, Machas & Partners
2. Funds 2.1 Types of Alternative Funds and Structures The Greek market for alternative investment funds (AIFs) is characterised by a limited but clearly defined set of legal vehicles governed by a distinct legal and regulatory structure. The most commonly established alternative investment funds in Greece include: • Mutual Fund AIFs; • Venture Capital Mutual Funds (VCMFs); • Venture Capital Companies (VCCs); and • real estate investment companies (REICs). Mutual Fund AIFs governed by Articles 37–56 of Law 4706/2020 are the sole regulated form of Greek licensed alternative investment funds. As a contrac - tual form of funds, they constitute pools of assets that do not have legal personality and are licensed and supervised by the Hellenic Capital Market Commis - sion (HCMC). They may be structured as open-ended or closed-ended and can include multiple compart - ments, each treated as a distinct AIF. These funds are favoured for their regulatory clarity, operational flex - ibility, and compatibility with a range of investment strategies, including real estate, equity, or private credit. They must be managed by a licensed AIFM, either a Greek or EU-based entity, under passporting rights. Venture capital mutual funds (VCMFs) are domestic, regulated, but non-licensed mutual funds that lack legal personality and are formed via a tripartite agree - ment between the investors, the fund manager, and the custodian. Unlike mutual fund- AIFs, VCMFs do not require HCMC prior authorisation and are estab - lished exclusively for the purpose of investing in equity and quasi-equity interests of companies that operate in Greek territory or contribute to the Greek economy. Investors are classified as unitholders and carry rights in rem over the fund’s assets as undivided owners of their portfolio. Venture capital companies (VCC) are incorporated entities in the form of a Greek Société Anonyme (S.A.). Their investment scope is similar to that of VCMFs, but the vehicle has a separate legal personality and issues shares instead of units. VCCs may invest in
Greece offers a compelling proposition combining EU regulatory credibility, operational flexibility, tax efficiency, and strategic geographic positioning for Southeastern European and Eastern Mediterranean investment strategies. 1.2 Key Trends A major tax reform was recently introduced in the taxation of alternative investment funds by virtue of Article 38 of Law 5162/2024. More specifically, the tax regime applicable to venture capital mutual funds under the relevant provisions of Article 7 of Law 2992/2002 was reinstated with the introduction of two alternative taxation methods, allowing fund managers to opt for tax opaqueness instead of the tax transpar - ency of the funds, which had been the sole taxation method. The relevant tax provisions are also applica - ble to licensed mutual fund AIFs by virtue of Article 56 of Law 4706/2020. The new taxation regime is solely applicable to funds established on or after 1 January 2025, while existing venture capital mutual funds and licensed mutual fund AIFs are tax-transparent. Following the introduction of Law 5193/2025, a new legal framework was introduced for the listed real estate investment companies (REICs). A REIC is a société anonyme with the sole purpose of acquiring and managing real estate. REICs are institutional enti - ties, and their lawful operation requires the obtaining of a licence from the Capital Market Commission. The introduction of the new legal framework expanded the eligible investments of REICs to include inter alia the exploitation and management of real estate for the purpose of commercial profit or any other benefit, for any residential, industrial, commercial or other pur - pose, including but not limited to hotel and general tourist activity, the exploitation of energy produc - tion and storage structures from renewable energy sources (RES), the exploitation of parking spaces, marinas, shopping centres or parks or data centres. This is expected to further increase the penetration of REICs in the Greek real estate market. However, at the same time, REICs previously licensed as AIFMs were allowed to request the revocation of their license to be regulated solely under the specific REIC regime.
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