GREECE Trends and Developments Contributed by: Theodoros Skouzos and Natalia Skoulidou, Iason Skouzos TaxLaw
Key structural challenge: demographics and human capital Greece faces one of Europe’s most serious demo - graphic challenges. The population has shrunk by more than 400,000 over the last 13 years as deaths have exceeded births and many young people have emigrated; fertility rates hover around 1.3–1.5 children per woman, well below replacement rate. In 2025, the government announced a EUR1.6 billion package of tax cuts and incentives to address population decline, warning that the population could fall below 8 million by 2050, with more than a third over 65, if current trends continue. For investors, demographics are a double-edged (a) a shrinking working age population can con - strain labour supply, especially in specialised sectors and remote regions; and (b) pension and healthcare costs will exert long- term pressure on public finances, and may limit fiscal room for other priorities. • Opportunities: (a) demand for services in healthcare, elder care, automation and labour-saving technologies is likely to grow; and (b) policies encouraging return migration of skilled Greeks and selective labour immigration could expand the talent pool in sectors like technol - ogy and agriculture. Advantages, challenges and practical tips for investors sword. • Risks: Bringing the above strands together, investors con - sidering Greece should keep the following high-level • Political and macro stability: a reform-oriented government, investment-grade credit ratings and primary budget surpluses reduce macro risk. • EU membership and funding: access to the single market, eurozone stability and significant inflows from the EU’s Recovery and Resilience Facility support investment in infrastructure, green transi - tion and digital projects. points in mind. Key advantages
• Strategic location: Greece sits at the crossroads of Europe, the Balkans, the Middle East and North Africa, which underpins opportunities in logistics, energy interconnections and regional headquarters. • Sectoral strengths: world-class tourism and ship - ping, strong renewables potential, a resilient agri- food sector and a growing tech ecosystem create diverse entry points. Key challenges • Justice system: slow courts and complex proce - dures make dispute resolution time-consuming. Robust contracts and ADR mechanisms are essen - tial. • Bureaucracy and implementation risk: despite real progress, administrative complexity and inconsist - ent enforcement can delay projects and increase transaction costs. • Demographic headwinds: the ageing population and emigration create long-term growth constraints and labour market challenges. Practical tips • Choose the right structure and partners: the opti - mal structure (greenfield, joint venture, acquisition) depends heavily on sector and local regulation. A strong local partner can mitigate bureaucratic and cultural hurdles. • Invest in compliance and governance: tax, cus - toms, environmental and planning rules are increasingly enforced, often with digital tools. Good governance is not just a legal comfort but a com - petitive advantage. • Think regionally: many successful investors use Greece not only as a domestic market but also as a base for operations and exports to Southeast Europe, the Eastern Mediterranean and North Africa, particularly in energy, logistics and tech. Conclusion For 2026, Greece promises a more balanced picture than the extremes of recent memory. It is no longer the “sick patient” of the eurozone, nor has it become a risk-free paradise for capital. Instead, it is a mid-sized, politically stable, reforming economy with a strong services base, increasingly modern state infrastruc - ture and deep integration into European financial and regulatory frameworks.
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