GREECE Law and Practice Contributed by: Maria Zoupa, Daphne Cozonis, Ioanna Tapeinou and Diana Tsourapa, Zepos & Yannopoulos
Zepos & Yannopoulos 280 Kifissias Avenue 152 32 Halandri
Athens Greece
Tel: +30 210 6967 000 Email: info@zeya.com Web: zeya.com
1. Corporate Structures, Residence and Tax Treatment 1.1 Corporate Forms and Their Tax Treatment Businesses in Greece most commonly adopt the forms of a société anonyme ( Ανώνυμη Εταιρεία , or ΑΕ) or private company ( Ιδιωτική Κεφαλαιουχική Εταιρεία , or ΙΚΕ). The form of a limited liability company ( Εταιρεία Περιορισμένης Ευθύνης , or ΕΠΕ) is also available. All of these forms of companies are referred to as “capital companies” ( κεφαλαιουχικές εταιρείες ). One of the features that distinguishes them from partner - ships is that the liability of their shareholders or mem - bers is limited. Large companies usually take the form of an AE, which – unlike the ΕΠΕ and IKE – is subject to a minimum share capital requirement (EUR25,000). The popular - ity of the IKE form for SMEs has risen significantly in recent years, as it offers a more flexible structure compared to an ΕΠΕ which is now a form much less frequently adopted. SMEs engaged in service provi - sion and family businesses often take the form of a general partnership ( Ομόρρυθμη Εταιρεία , or OE) or limited partnership ( Ετερόρρυθμη Εταιρεία , or ΕΕ). Other legal forms are also available (eg, civil partner - ships, consortiums) but are less commonly used. Corporations and partnerships are taxed as separate legal entities. 1.2 Use and Taxation of Transparent Business Structures In general, business entities are not transparent for fiscal purposes. Exceptions include Greek Venture
Capital Mutual Funds (ΑΚΕΣ) and Greek Alternative Investment Funds (ΟΕΕ) (upon a relevant election). Alternatively, such funds can elect to be taxed on an annual basis at a percentage of the difference between the value of their shareholdings on 31 December of each tax year and the cost of acquiring such share - holdings increased by their cumulative operating expenses. Such tax exhausts the tax liability of the fund and of its unitholders as regards income tax for the period of their holding. The tax of Greek undertakings for collective invest - ment in transferable securities (ΟΣΕΚΑ) is calculated as a percentage of their net assets, and exhausts the tax liability of the undertaking and its shareholders. The tax of Greek real estate investment companies (ΑΕΕΑΠ) is calculated as a percentage of the average fair market value of their investments. This tax also exhausts the tax liability of the undertaking and its shareholders. Therefore, Greek ΑΕΕΑΠ are not subject to income tax. The form of Greek real estate invest - ment companies (ΑΕΕΑΠ) is used in Greece for pooled investments in large real estate portfolios. 1.3 Tests for Determining Tax Residence Subject to the operation of double taxation treaties, incorporated businesses are deemed to be resident in Greece if: • they are formed in accordance with Greek law; • their registered seat is in Greece; or • the place of their effective management is in Greece.
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