Greece attempts to encourage investments from foreign residents.
The following are among the reasons that foreign investors are attracted to Greece:
- Membership in the EU.
- Strong business relations with the Balkan countries and countries of southeast Europe.
- Cheap labor costs compared to the West.
- Double Taxation Prevention Treat.
- Large development budgets from the EU that amount to some 24 billion dollars for the years 2000 - 2006.
As a general rule, the Greek market encourages foreign investments. In all that concerns the grant of benefits, there is no difference between overseas investors and local investors. Nevertheless, there are restrictions, for reasons of national security, on the purchase of real estate in border areas and on certain islands in Greece.
Investment benefits
In Greece, benefits may be in one of the following forms:
- A cash grant.
- Income tax benefits, up to 10 years after completing the investment.
- Cash grants(wages for new employees).
Each of the above mentioned benefits is divided into 5 categories, depending on the Greek zone.
In general, Greece is divided into four areas - A - D. Area D is divided to sub areas D1-D3 and includes mainly the territories that are within 20 kilometers of any Greek border, confers entitlement to the largest benefits.
The maximum benefits given, subject to the areas A - D may be up to 40% for a cash grant, 100% tax exemption and 48.19% grants for new employees.
A cash grant has a specified upper limit. The limit does not apply to certain investments.
In any case, the different benefits are given only to an investor who has own participation of at least 25% in the investment.
Additional info by Hellenic Center for Investment (ELKE) www.elke.gr
