Our Products:
Last updated at
December 2, 2025
Learn more about this by booking a demo call with us. Our team will guide you through the process and answer any questions you may have.
Book NowGreece applies corporate tax under Income Tax Code Law 4172/2013 as amended. All legal entities operating in the country fall under this system. The standard rate is 22 percent. Banks and some financial institutions have different obligations. Tax is calculated on net income after deductions and adjustments for non-deductible expenses. Companies keep accounting records, submit annual tax returns, and follow transfer pricing rules. Non-residents pay tax on income from Greek sources. Residents pay tax on worldwide income. This blog explains how corporate tax works in Greece, who it affects, the filing rules, and the incentives available to businesses qualifying under local regulations.
The corporate income tax rate of Greece is 22 percent and will apply to all domestic companies and foreign entities that earn income from sources within the country. The rate was lowered from 28 percent in the past to attract investment and support the growth of the business sector.
Key Rates:
22 percent: The standard rate of corporate income tax for most companies that operate in Greece.
29 percent: Applied on the profits of credit institutions and financial entities governed under sector-specific laws.
5 percent withholding: Charged on the distribution of dividends. The rate will be reduced under a tax treaty or under the EU Parent-Subsidiary Directive if the necessary documentation is submitted to the tax authorities.
In Greece, the tax residency of a company will define the range of its tax duties and the income on which the tax will be imposed. A company will be considered a tax resident of Greece if it meets any of the following conditions:
It is incorporated under Greek law which means it is legally formed according to the corporate rules of the country.
It has a registered seat on the territory of Greece which is the official address recorded with the Greek authorities.
Its effective place of management is on the Greek territory at any time during a tax year referring to where the main management and commercial decisions of the company are made.
Scope of Taxation:
A resident company will be taxed on the total income of the business which includes earnings from all sources both inside and outside of Greece.
A non-resident company will be taxed only on the income generated from sources within Greece which means that only the Greek-sourced income of the business will be subject to corporate tax while foreign income will remain exempt.
In Greece, the taxable income of a company will be calculated by adjusting the accounting profit according to the provisions of the Income Tax Code. Certain expenses are not deductible while others will be allowed as deductions to lower the taxable base and reduce the total corporate tax of the business.
Non-Deductible Expenses:
Fines and penalties imposed by the authorities or by contract terms.
Corporate income tax of the company.
Personal or non-business-related costs of owners or employees.
Payments made to entities in non-cooperative jurisdictions unless the company provides proper justification of the transaction.
Allowable Deductions:
Salaries of employees and other staff-related expenses.
Employer contributions on the social security of employees.
Depreciation of fixed assets based on the tax rules of Greece.
Research and development costs that qualify under Greek law and will contribute to the growth of the business.
Charitable donations made within the legal limits of the tax law.
Depreciation Rates:
Buildings: 4 percent per year on a straight-line basis.
Machinery and equipment: 10 percent per year.
IT assets and software: 20 percent per year.
Vehicles: 16 percent per year.
Greece will impose withholding taxes on certain types of payments made to nonresident companies and individuals.
Dividends paid to a nonresident will be subject to a tax of 5 percent on the distributed amount.
Interest paid on loans or deposits will carry a tax of 15 percent on the payment made to the foreign party.
Royalties for the use of intellectual property or other commercial rights will face a tax of 20 percent on the payment amount.
A lower rate of tax may apply under a double taxation treaty or under the directives of the European Union if the nonresident company submits the required documentation to claim treaty benefits. A nonresident company will need to obtain a Greek tax identification number to apply the benefits on the transaction.
Corporate tax compliance in Greece will require a company to file its tax return electronically on the portal of the Independent Authority for Public Revenue. The digital system will help ensure timely submission of reports and correct calculation of the tax due on the company’s income.
Key Deadlines:
Filing: A company will file the tax return within six months of the fiscal year-end on the portal of the Independent Authority for Public Revenue.
Payment: The tax will be paid in eight equal monthly installments starting on the filing date for better cash flow management.
Penalties:
Late filing: A fine of €100 to €500 will apply based on the size of the company.
Late payment: A charge of 0.73 percent per month will apply on the unpaid tax amount until it is settled.
Greece offers a range of tax benefits to support both local and foreign investors:
Development Law Incentives:
A company investing in specific sectors or regions will receive a tax exemption, faster depreciation of assets, or a payroll subsidy to lower operational costs.
R&D Tax Credits:
Expenses on research and innovation that qualify under Greek law will receive a full deduction along with an extra 30 percent deduction on eligible costs to encourage development.
Free and Special Economic Zones:
A business operating in a designated free zone will receive relief on customs duties and value-added tax for imported goods used in production.
Energy Transition and Green Investment Deductions:
A project of a company that focuses on sustainability, renewable energy, or digital transformation will receive additional tax deductions on the investment to lower the total cost of the project and support long-term business savings.
In 2025, Greece continues implementing digital transformation measures for tax administration under the myDATA electronic bookkeeping platform. Businesses must maintain and report their accounting data electronically to the AADE.
Key 2025 Highlights:
Continued use of e-books (myDATA) for all corporate taxpayers.
Stricter transfer pricing enforcement and audit focus on cross-border transactions.
Ongoing reduction of bureaucratic processes for investment approvals.
The corporate tax system of Greece will focus on compliance with rules while supporting economic activity. A rate of 22 percent on profits along with deductions for research and development and qualifying investments will make Greece a location for a business within the European Union. A company will need to file tax returns on time, report accounting data on the myDATA platform, and maintain transfer pricing records to avoid penalties.
Consulting the Independent Authority for Public Revenue or a local tax advisor will help a company stay aligned with the tax rules of Greece and manage corporate tax obligations efficiently while ensuring proper documentation for treaty benefits and deductions.
What is the standard corporate tax rate in Greece?
The standard corporate income tax rate in Greece is 22 percent of the taxable profits of a company operating in the country.
Are there higher tax rates for specific sectors in Greece?
Banks and a number of financial institutions will have a 29 percent rate on the profits under the sector-specific rules of the Greek tax system.
What is the dividend withholding tax rate in Greece?
Dividends distributed by a company in Greece will face a 5 percent withholding tax which may be reduced under the rules of the European Union or under a tax treaty if the proper documentation is submitted.
How long can corporate losses be carried forward in Greece?
A company’s corporate losses will be carried forward for a period of five years from the year of the loss and will be offset against the profits of future years.
Are there any electronic reporting obligations in Greece?
Companies will need to maintain accounting records and report data on the myDATA digital bookkeeping system to the tax authorities of Greece.
Quick Navigation
Learn more by booking a demo with our team. We'll guide you step by step.