GREECE Law and Practice Contributed by: Ioannis Charalampopoulos, Petros Machas and Alexandros Saratsiotis, Machas & Partners
research, investment programme analysis, and stra - tegic organisation assistance. In terms of regulatory timelines, the approval process is not uniform. It depends on various factors, includ - ing the type of fund or fund manager to be authorised, the complexity of the fund’s holdings and governance structure, and the fitness and propriety of individu - als proposed for key functions (eg, risk management, compliance, portfolio management). Where licens - ing by the HCMC is required, the typical timeframe ranges from three to six months. Funds that do not require authorisation (eg, VCMF) can be set up swiftly, although they remain subject to notification and reg - istration requirements. 2.3 Disclosure/Reporting Requirements In Greece, under Article 23 of Law 4209/2013 (trans - posing Article 23 of AIFMD), alternative investment fund managers (AIFMs) are subject to detailed dis - closure requirements with respect to each AIF they manage or market in the EU. Before any investment is made, the AIFM must provide investors with extensive information through the fund’s offering documents or other durable medium. Mandatory content includes, among others: • a description of the investment strategy and objec - tives of the fund; • the types of assets it may invest in; • use and limits of leverage; • risk and liquidity management procedures; • valuation methodology; • all applicable fees and charges; • conflicts of interest (especially those arising from delegation) and • any preferential treatment granted to certain inves - tors. Legal and regulatory disclosures must also cover the identity and role of key intermediaries and service providers, such as the depositary and the auditor, as well as the redemption conditions and the process for amending the fund’s investment policy. The latest annual report and NAV, historical performance (if avail - able), and arrangements with prime brokers must also be disclosed. Periodically, AIFMs must update inves - tors on illiquid assets, risk management metrics, and
(where leverage is used) changes in leverage levels and any related reuse of collateral. 2.4 Tax Regime for Funds The Greek tax regime applicable to alternative funds provides specific and favourable treatment. A major tax reform was recently introduced in the taxation of alternative investment funds by virtue of Article 38 of Law 5162/2024, with the introduction of two alternative taxation methods. These methods allow fund managers to opt for tax opaqueness instead of the tax transparency of the funds, which was the sole taxation method previously in place. The relevant tax provisions apply to venture capital mutual funds and licensed mutual fund AIFs. The two alternative taxa - tion methods are as follows. • Tax Opaqueness: The fund itself is subject to tax, despite being established as a mutual fund with - out separate legal personality. The management company is responsible for filing and paying an annual tax on behalf of the fund, calculated on the difference between the year-end value of the fund’s equity investments and their acquisition cost (adjusted for cumulative operating expenses). The applicable rate is 5% of the prevailing main refinancing operations rate of the European Cen - tral Bank. Payment of this tax fully exhausts any income tax obligation of both the fund and its investors for the holding period. Distributions, such as dividends or redemptions, are tax-exempt and not subject to withholding tax. Any foreign tax paid by the fund may be credited against Greek tax liabilities and any excess credit may be carried forward to offset future taxes. • Tax Transparency: The fund shall be tax-trans - parent, whereby no tax is levied at the fund level, and investors are taxed directly as undivided co- owners of the fund’s underlying assets, in applica - tion of the common tax look-through principle. In such cases, any transaction involving fund units is treated for tax purposes as if the investor had directly disposed of their pro rata share of the fund’s assets. Regarding VCCs, a flat tax of 20% applies to the grossed-up amount of dividends distributed to inves - tors, subject to specific exemptions where such dis -
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