Greece Corporate Tax Guide 2026 — 22% Rate, Dividend Withholding

Overview of Greek Corporate Tax

Companies resident in Greece are subject to corporate income tax (Φόρος Εισοδήματος Νομικών Προσώπων και Νομικών Οντοτήτων) on their worldwide income at a flat rate of 22%. The tax is administered by the ΑΑΔΕ (Independent Authority for Public Revenue). A company is considered a Greek tax resident if its registered office or place of effective management is in Greece. Non-resident companies are taxed only on Greek-source income, subject to applicable double taxation treaties. The tax year is the calendar year (1 January to 31 December), though companies may use a different fiscal year with AADE approval.

Greece offers several tax incentives and allowances to encourage investment, including enhanced depreciation, tax-exempt reserves, and preferential treatment for certain business forms (e.g., investment funds, shipping companies under Law 27/1975). The combined burden of corporate income tax (22%) and dividend withholding tax (5%) results in a top effective rate of approximately 25.9% on distributed profits.

Corporate Income Tax — 22%

The standard corporate income tax rate is a flat 22% on taxable profits for all companies, regardless of size or sector. Taxable profits are derived from the company's accounting profit (λογιστικά κέρδη) as shown in the annual financial statements (prepared under Greek GAAP or IFRS), adjusted for tax provisions.

Deductible Expenses: Business expenses are generally deductible if they are incurred wholly and exclusively for the business and supported by proper documentation. Key deductible items include: cost of goods sold, employee costs (including social security contributions), depreciation of tangible assets (rates: 10% for machinery, 8% for buildings, 10-20% for computer equipment and software), amortisation of intangible assets (goodwill over 10 years, patents over 5 years), interest expense (subject to thin capitalisation rules — interest exceeding 30% of EBITDA is non-deductible), rent and utility costs, professional fees, advertising and marketing costs, and research and development costs (deductible plus enhanced super-deduction of 150-200%).

Non-Deductible Items: Dividends paid, penalties and fines, 50% of motor vehicle expenses (unless the vehicle is used exclusively for business), entertainment expenses (generally non-deductible), interest on late-paid taxes, and expenses not supported by proper invoices or electronic books (myDATA).

Tax Losses: Tax losses can be carried forward for 5 years and offset against future taxable profits. Losses are calculated on a tax basis (adjusted for non-deductible items and differences between accounting and tax depreciation). Loss carry-back is not permitted. The carry-forward period was reduced from 10 years to 5 years under recent reforms.

Dividend Withholding Tax — 5%

Dividends distributed by Greek resident companies to their shareholders are subject to 5% withholding tax (παρακράτηση φόρου μερισμάτων). This is a final tax for individual shareholders — the dividend is not included in their personal income tax return. The withholding tax is applied to the gross amount of the dividend declared.

EU Parent-Subsidiary Directive: Under the EU Parent-Subsidiary Directive, dividends paid to a parent company resident in another EU member state are exempt from withholding tax if the parent holds at least 10% of the Greek subsidiary's capital for an uninterrupted period of at least 12 months. For non-EU parent companies, the standard 5% withholding rate applies, subject to reduction under applicable double taxation treaties (commonly 5-10%).

Non-Resident Shareholders: Dividends paid to non-resident individuals are subject to the standard 5% withholding tax. Reduced rates may apply under tax treaties. For example, the Greece-US treaty provides for a 0% withholding tax if the US resident owns at least 10% of the voting stock, or 30% otherwise.

Filing Requirements

Annual Corporate Tax Return (Δήλωση Φορολογίας Εισοδήματος Νομικών Προσώπων): Companies must file their annual tax return electronically through the TaxisNet platform by the end of the sixth month following the end of the fiscal year (typically 30 June for calendar-year companies). The return includes the company's financial statements, tax adjustments (Λογιστική Βάση), and computation of taxable income. The return must be accompanied by an auditor's report (Έκθεση Ελέγχου) for companies required to have an annual statutory audit.

Tax Payment: Corporate tax is paid in 8 equal monthly instalments (from July to February for calendar-year companies). The first instalment is due by the end of July, and the final instalment by the end of February of the following year. Companies can also pay the full amount by the first instalment deadline and receive a 3% discount. Advance tax payments (προκαταβολή φόρου) are required: 80% of the current year's estimated tax for companies with turnover up to €2,000,000, and 95% for companies exceeding this threshold. The advance is paid in instalments.

Withholding Taxes: Companies must withhold and remit various taxes: 15% on interest payments to individuals, 5% on dividend distributions, 20% on royalties paid to non-residents (reduced under treaties), and 3% on certain payments to freelancers and contractors (παρακρατούμενος φόρος 3% επί τιμολογίων ελευθέρων επαγγελματιών).

Tax Incentives and Reliefs

R&D Super-Deduction: Research and development expenditure qualifies for a 150-200% super-deduction (the deduction is multiplied by 1.5 to 2 for tax purposes). Qualifying costs include: wages of R&D personnel, materials and supplies for R&D activities, third-party R&D services, and depreciation of R&D equipment. The enhanced deduction is available for both in-house and outsourced R&D.

Investment Allowance (Αναπτυξιακός Νόμος — Law 4887/2022): Companies investing in qualifying assets (machinery, equipment, buildings, IT, green technology, digital transformation) may benefit from: tax-exempt reserve (up to 70% of investment cost), direct grant (subsidy), interest rate subsidy on loans, and leasing subsidy. The specific benefits depend on the region and company size. Large investments (€10M+) can negotiate individual incentive packages.

Shipping Taxation: Greek shipping companies may opt for the tonnage tax system instead of the standard corporate tax. This replaces the 22% corporate tax with a notional tax calculated on the net tonnage of vessels, regardless of actual profits. The tonnage tax is governed by Law 27/1975 and is available for vessels flying the Greek flag or vessels under other flags operated by Greek-controlled entities.

FAQs

What is the tax rate for branches of foreign companies?

Branches (υποκαταστήματα) of foreign companies in Greece are taxed at the same 22% corporate rate on their Greek-source income. Branch profits remitted to the head office are not subject to additional withholding tax (unlike dividends). However, branches are subject to the same filing, auditing, and bookkeeping requirements as resident companies.

Are there any minimum capital requirements?

For an Ανώνυμη Εταιρεία (ΑΕ) — the standard public limited company form — the minimum share capital is €25,000, at least 40% of which must be paid up before registration. For an Εταιρεία Περιορισμένης Ευθύνης (ΕΠΕ) — private limited liability company — the minimum capital is €4,500. The Ιδιωτική Κεφαλαιουχική Εταιρεία (ΙΚΕ) — the most popular alternative for small businesses — has no minimum capital requirement.

What are the transfer pricing requirements?

Greek transfer pricing rules (based on OECD guidelines) require related-party transactions to be conducted at arm's length. Companies with related-party transactions exceeding €100,000 per year must prepare and file a transfer pricing documentation report (Συνοπτικός Πίνακας Πληροφοριών Ενδοομιλικών Συναλλαγών) with their annual tax return. The report must include a functional analysis, benchmarking study, and justification of transfer prices. Penalties for non-compliance: 1% of the value of undocumented transactions (minimum €5,000).