Legal forms of business in Greece: pick the right structure for your work

Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad

You are about to invoice from Greece, hire your first person or open a Greek arm of your foreign company. The form you pick sets your liability, your tax rate and whether you can run it from abroad. This guide compares every Greek structure for 2026 and ends with a simple decision rule.

Greece legal forms of business in 2026: the key figures

Is this guide for you?

Read on if you…

• are a freelancer or consultant choosing between sole proprietorship and an IKE;
• are a founder setting up in Greece, alone or with partners;
• run a foreign company and need a Greek branch or subsidiary.

Probably not your case if you…

• are an employee with no plans to invoice – see personal tax deductions and benefits in Greece;
• only hold investments – read capital gains tax in Greece.

Which Greek business forms can you choose?

Sole proprietorship (atomiki epicheirisi)

You and the business are the same person. You register the activity in myAADE in a day, and enrol with e-EFKA for social security. No capital is needed. Here's the catch: your liability is unlimited, and profits are taxed at your personal rates up to 44%.

Private company (IKE)

The Idiotiki Kefalaiouchiki Etaireia is Greece's modern small company. It can have one partner, and capital can start at EUR 1. Partners can also contribute work or guarantees instead of cash. Liability is limited to contributions, and you can register online through GEMI.

Limited liability company (EPE)

The older LLC. It has no minimum capital, but its rules are more rigid than the IKE's and it needs a notarial deed. Few new founders choose it today.

Société anonyme (AE)

The Anonymi Etaireia is the form for larger projects, investors and listing. It needs EUR 25,000 of share capital, a notarial deed and a board of directors.

General and limited partnerships (OE and EE)

In an OE, all partners have unlimited liability. In an EE, at least one general partner does; limited partners risk only their contribution. Partnerships pay 22% corporate tax like companies.

Branch of a foreign company

A branch is registered with GEMI but is not a separate legal person. The foreign parent is fully liable. Greek profits pay 22%, and sending them to the parent carries no withholding.

How do the forms compare?

Social contributions also differ. Sole proprietors and most IKE or partnership partners pay e-EFKA contributions as self-employed.

Which structure fits what you do?

1. Solo freelancer, under about EUR 60,000 of profit: sole proprietorship. Lowest cost, simplest books.
2. New Greek resident under Article 5C: sole proprietorship. Half of your business income is exempt for seven years, which a company cannot match. See tax incentives for expats and digital nomads in Greece.
3. Higher profits you want to reinvest: IKE. You pay 22% and only 5% more when you take dividends.
4. Raising money or planning an exit: AE, or an IKE converted later.
5. Foreign company testing the Greek market: branch, then a subsidiary IKE once the business grows.

Ready to compare your options in detail? Use Heavnn business setup.

Can you run a Greek company from abroad – or a foreign one from Greece?

Both directions carry tax risk.

A Greek company run from abroad. Greek law lets non-residents own and manage an IKE or AE. You need a Greek tax number, and a tax representative is optional for most since Law 5104/2024. But if the real decisions are made in another country, that country may claim the company is resident there.

A foreign company run from Greece. This is the more common trap. A Greek company is resident if incorporated in Greece or if its place of effective management – basically where the key decisions are really taken – is in Greece. If you sit in Athens and run your Estonian or Delaware company, Greece can tax its profits at 22%.

A permanent establishment (PE) is a second risk: a fixed place of business in Greece, like your home office, through which the company works. Greece can then tax the profits linked to it. Before moving, read how to obtain Greek tax residency.

Common mistakes (and what they cost)

• Setting up an IKE while eligible for 5C → you give up a 50% exemption and can pay nearly twice the tax.
• Running a foreign company from your Greek flat → Greece can claim it is managed there and tax all its profits at 22%.
• Choosing an OE to save on setup → general partners remain personally liable for every business debt.
• Ignoring the advance tax payment → in year two you must also prepay part of next year's tax, which hits cash flow.
• Forgetting e-EFKA contributions → contributions are owed even in low-profit years, and arrears block your tax clearance.

Frequently asked questions

What is the best business structure for a freelancer in Greece?

For most freelancers, the sole proprietorship. It is registered in a day through myAADE, needs no capital and has the lightest bookkeeping. Profits are taxed at 9% to 44%. If you are a new resident, the Article 5C regime halves that income for seven years, which usually beats an IKE's 22% corporate tax plus 5% on dividends.

How much does it cost to set up an IKE in Greece?

An IKE can start with EUR 1 of capital. Registration through GEMI and a one-stop shop usually costs a few hundred euros in registry and chamber fees, plus accountant fees. Using the standard articles, it can be registered online in one to three working days. Annual accounting and GEMI filings add running costs.

Can a non-resident open a company in Greece?

Yes. Non-residents can own and manage an IKE, EPE or AE. You need a Greek tax number and a registered office in Greece. A tax representative is no longer a general obligation since Law 5104/2024. Remember that where the company is really managed affects its tax residence, so plan who decides what and where.

How is a Greek company taxed in 2026?

IKEs, EPEs, AEs and partnerships pay 22% corporate income tax on profits. Dividends paid to shareholders carry 5% withholding tax, which is final for Greek-resident individuals. So the combined rate on distributed profits is about 25.9%. Companies also pay an advance payment on next year's tax, with reductions in the first years.

What is the difference between an IKE and an AE?

An IKE needs only EUR 1 of capital, is flexible and suits small teams. An AE needs EUR 25,000 of share capital, a notarial deed and a board of directors. It suits larger projects, investors and listing. Both pay 22% corporate tax and 5% on dividends, and both give limited liability.

Should a foreign company open a branch or a subsidiary in Greece?

A branch is simpler, needs no capital and sends profits home without withholding. But the parent is fully liable for its debts. A subsidiary IKE ring-fences liability and looks more local to banks and clients. Both pay 22% on Greek profits, so the choice is mainly about risk and image.

Related guides

• Tax incentives for expats and digital nomads in Greece
• How to obtain tax residency in Greece
• Specific taxes in Greece
• Greece tax landscape overview
• Legal forms of business in Portugal
• Legal forms of business in Spain
• All country tax guides

Sources

• Greek Business Portal – General Commercial Registry (GEMI)
• AADE – Independent Authority for Public Revenue
• e-EFKA – Unified Social Security Fund
• National Printing Office – Government Gazette (Law 4072/2012, Law 4548/2018)
• PwC Worldwide Tax Summaries – Greece, taxes on corporate income

This guide is general information, not personalised tax advice. See how we research and review.