GREECE Law and Practice Contributed by: Nikolaos Koulocheris, Ioannis Charalampopoulos, Rozita Karasso and Dimitra Kotsovelou, Machas & Partners
5. Investment Vehicles 5.1 Types of Entities Available to Investors to Hold Real Estate Assets Real estate assets can be acquired by any indi - vidual or entity. Foreign entities can acquire rights in rem over Greek real estate provided that they have acquired a tax identification number. The exploitation of real estate is mostly made via limited liability entities. The main types of enti - ties are the société anonyme (S.A.), which is a company limited by shares, and the private com - pany, which is also a limited liability entity. Real estate mutual funds and REICs also exist, which are governed by the special legal framework of Law 5193/2025. 5.2 Main Features and Tax Implications of the Constitution of Each Type of Entity The shareholders of a société anonyme and the partners of a private company are not liable for any obligation of the company, which is a distinct legal person that carries its assets and liabilities separately from its members. The con - tribution of real estate property in exchange for the issuance of shares of a société anonyme or share parts of a private company requires its prior independent valuation to protect its credi - tors from overvaluation. In the event that the transfer of the real estate property is made in the context of the incorporation of the entity in the form of contribution in kind of any part of the initial capital, the incorporation must be made via a notarial deed by virtue of which both the incorporation of the entity and the transfer of the real estate property are consummated. The corporate income tax for both sociétés anon - ymes and private companies is equal to 22% on taxable profits, and a withholding dividend tax of 5% applies to any dividend distribution subject to exemptions for intragroup dividend distributions and distributions to foreign entities
domiciled in jurisdictions with which the Hellenic Republic has signed a double taxation avoid - ance agreement. 5.3 REITs The split between legal and beneficial owner - ship is not recognised under Greek law and real estate investment trusts do not exist, but Greek tax law recognises foreign trusts as legal entities without separate legal personality. In addition, Law 2778/1999, as amended and in force, sets out the special legal framework for real estate mutual funds and REICs, which are both institu - tions licensed by the Hellenic Capital Markets Commission. REICs operate in the form of sociétés anonymes , but are governed by the special legal framework of Chapter E of Law 5193/2025 (Articles 40 to 60). A REIC is a société anonyme with the sole purpose of acquiring and managing real estate. REICs are institutional entities, and their law - ful operation requires the obtaining of a licence from the Capital Market Commission. In order to grant an operating licence, the Capital Market Commission evaluates the technical and finan - cial resources of the company, the reliability and experience of the members of the management team with a particular focus on the sector of real estate and the development and exploitation of real estate, as well as the suitability of the per - sons who hold, directly or indirectly, a qualifying participation to ensure the sound management of the company, as well as the existence of cor - porate governance rules. Within two years from the issuance of its licence as a REIC, its shares must be listed on a regulated market based in Greece; such deadline may be extended by an additional period of up to 36 months by Capi - tal Markets Commission upon application of the company. At the time of submission of the application for the listing of its shares in a regu -
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