Foreign Investments in Greece

Foreign Investments in Greece

The considerable investment opportunities available to foreign investors along with Greece's socio-political and geographic position make it a first-class investment opportunity for manufacturing and industrial companies.

Greece is at the crossroads of 3 continents-Europe, Asia and Africa. It serves as a southern gateway for Eastern European countries and enjoys a long-standing friendly relationship with those countries. Greece has excellent political and economic relationships with the Arab countries and all of the Third World countries as well.

As a full member of the European Economic Community (EEC) since 1981, it enjoys the full benefits of that membership including substantial investment on the part of the EEC in the economic enhancement of Greece.

Greece is politically stable and its democratic system guarantees normal and safe operation of investment projects.

There is a general climate of good labor relations among Greece's trained labor force ensuring the proper and productive operation of a business. This labor force enjoys excellent living conditions. Inflation, interest rates and unemployment show declining trends. Greeks enjoy abundant housing, social security and the European model of healthcare.

The Development Law of 1892/1990 and subsequent revisions regulate the foreign investment incentives and categorizes them into a) grants and b) tax allowances.

Grants can consist of free grants of up to 50% of the value of the productive investment or subsidies of the interest rate for up to 10 years. Manufacturing investments which exceed approximately $10 billion and create more than 300 new jobs are especially important to the Greek economy and may be granted additional incentives.

Tax allowances of up to 100% are granted on the net annual profit subject to income tax for as many years as necessary to cover the amount of the tax allowance on the cost of the investment.