Investing in Greece: Kosmidis & Partner is Your Expert for Successful Investments
Every crisis is followed by an upswing. This also applies to the Greek crisis! Rigorous austerity packages and various requirements led to massive cuts: unemployment grew drastically, wages and pensions fell, tax increases burdened businesses, and real estate prices also collapsed. For some time now, however, things have been looking up again for Greece – the trough has been passed, and the country is developing positively. Thanks to various subsidy programs, structural funds, and EU funding, such as the EU recovery program “Next Generation EU,” lucrative investment opportunities are arising for German companies in Greece.
Investing in Greece: The KPAG Kosmidis & Partner Law Firm (KPAG) advises you in all legal areas and provides you with comprehensive information on your options, as well as the various subsidy and incentive programs.
Investment opportunities have continuously expanded, improved, and simplified in recent years: market entry barriers have been reduced, state property released for privatization, bureaucratic hurdles dismantled, and subsidy incentive programs created. Thanks to the Greek government’s reform plan from 2019, an increase of around 20% in private investments is expected in the coming years. If you are also looking for lucrative investment opportunities, we stand competently by your side with our experience and expertise, advising you on the opportunities and risks of the local market. Whether it’s real estate acquisition, company takeover, or questions about the legal situation: KPAG is your competent contact for investing in Greece!
Why invest in Greece? The Advantages of the Country
With its 16,000 km coastline and countless seaside resorts and islands, Greece is one of Europe’s most popular holiday destinations. The tourism sector therefore offers the best prerequisites for promising investments, especially due to the collapse in the prices of Greek real estate during the crisis. Furthermore, the privatization of state-owned companies such as banks, airports, and mobile phone licenses is attracting numerous major investors who see interesting opportunities in it.
- Investment Law: A new investment law was passed in Greece in September 2014, making the country more attractive to foreign investors. The Investment Law particularly supports important economic sectors such as tourism, renewable energy, and the logistics and service sectors. The National Strategic Reference Framework (E.S.P.A.) is supported by EU funding and combines various programs that contribute, among other things, to increasing competitiveness, environmental protection, and the modernization of the Greek infrastructure. This makes investing in Greece increasingly easier and more lucrative.
- Location & Logistics: Due to its geostrategic location in the Eastern Mediterranean, Greece offers an attractive location for (logistics) companies. Both the immediate neighborhood to the Balkan countries and the proximity to the Near and Middle East make Greece a promising hub. The Logistics Law also promotes the settlement of new companies, for example through legal and bureaucratic simplifications regarding the construction of warehouses. In addition to Athens Airport, the large ports of Thessaloniki and Piraeus, in particular, offer a perfect connection to international goods traffic. Greece is the ideal location for logistics companies!
- Favorable Labor Market: Youth unemployment in Greece is still high – accordingly, the number of well-trained and qualified specialists on the Greek labor market is large. The proportion of academics is considerable, and many young Greeks have a German background: investing in Greece is therefore particularly worthwhile for German companies.
How to Invest Profitably in Greece?
Not only the Greek real estate market, but also private companies offer promising investment opportunities. Especially those in the IT sector, as well as the textile, metal, and food industries, are very popular with foreign investors. In the service sector, too – increasingly in the areas of technology and telecommunications – companies with good substance can be found that are cheaply available for sale. This results in numerous ways in which investing in Greece is worthwhile:
- Private Real Estate: In response to the Greek crisis, the government introduced a new property tax. The result: numerous homeowners are selling their residential property. This, in turn, offers foreign investors a lucrative opportunity to acquire real estate cheaply. Thanks to the significantly lower prices than in Germany or other European countries, the demand from foreign investors for real estate has continued to grow. A villa by the sea, a house with a pool, an apartment in the city, or a simple plot of land – Athens and the Greek islands are the most popular locations for real estate investors, who also benefit from the low ancillary purchase costs.
- Tourism: With a share of more than 10% of Greece’s gross domestic product, tourism is also a promising sector for investors. Holiday home properties in the country’s tourist regions, for example on islands like Crete, Rhodes, or the Peloponnese, prove to be particularly attractive. Around 190,000 seaside resorts, a diverse landscape, and impressive cultural cities attract millions of tourists from all over the world every year. Therefore, hotels, marinas, or even the catering sector are further promising investments for investing in Greece.
- Industry: The leading sector in Greece is the chemical industry. The focus here is primarily on exports, with Germany being the most important trading partner. The pharmaceutical industry, in particular, contributes a large part to the Greek economy, in addition to the production of plastic and rubber products. Innovative products and many highly qualified specialists are waiting here for foreign investors. But the food industry also offers many opportunities for investing in Greece. With a share of around 25% of the total turnover of Greek industry, it is one of the country’s driving forces and enables numerous jobs. Regional products such as Greek olive oil, sheep’s cheese, olives, and wines are particularly popular in Germany, Great Britain, Spain, Italy, and the USA and are among the most exported consumer goods. Electrotechnology, metal production, and mechanical and plant engineering also prove to be lucrative investment opportunities.
- IT: Ioannina, also called the Greek Silicon Valley, is the hub of Greece’s currently booming IT sector. The government has been specifically recruiting foreign investors for some time, so numerous startups, in addition to major corporations and global players such as Tesla, Microsoft, and Deutsche Telekom, are also settling there. Especially in the area of digitization, promising opportunities for investing in Greece arise thanks to 5G telecommunication networks, social media, open data, cyber security, e-commerce, and other trends.
Conclusion: The Greek crisis and the latest reforms by the Greek government have created attractive opportunities for foreign investors in various sectors, which still exist. Whether you want to buy a house in Greece, acquire commercial real estate in Greece, or are simply looking for a competent lawyer in Greece to assist you legally with expansion efforts – KPAG Kosmidis & Partner is there for you!
Investing in Greece & More with KPAG Kosmidis & Partner
The KPAG Kosmidis & Partner Law Firm, based in Thessaloniki, Greece, has been in existence since 1992 and employs competent specialist lawyers in all areas of Greek and German law. Our bilingual firm specializes in German-Greek legal matters and has supported countless companies and private individuals with their investments in Greece. Place your trust in our expert knowledge and benefit from our decades of experience. Naturally, we are also available to you as a Greek lawyer in other legal areas, for example in Inheritance Law Greece.
Do you have questions about investing in Greece, would you like information regarding the various options, or do you need a lawyer for international inheritance law? Then do not hesitate to contact us. We look forward to assisting you with advice and action.