Income tax of legan entities
Corporate Income Tax
The profits of Greek capital companies (stock corporation, limited liability company, private capital company IKE) are subject to a uniform corporate income tax rate, currently 22% (credit institutions: 29%), regardless of whether they are distributed or retained; the rate was reduced from a previous 24% in 2021 and has been stable since. An additional withholding tax, currently 5% (previously 10%), is levied on distributed profits (dividends). Tax losses may be carried forward for up to five years. Partnerships and sole proprietorships keeping double-entry books are taxed under the same principles; smaller businesses keeping single-entry books, and self-employed professionals, by contrast, are taxed on their profits under the progressive income tax scale for natural persons.
Taxation of Benefits in Kind to Company Officers
Where a company makes benefits in kind – such as company cars or company housing – available to managing directors, board members or shareholders for private use, the resulting benefit continues to be treated as additional income of the person benefiting and taxed accordingly; the company’s own records form the basis of assessment.
Electronic Control and Self-Monitoring
The previously announced “self-monitoring criteria” for smaller businesses have been replaced by a more advanced, data-driven system: via the myDATA platform (my Digital Accounting and Tax Application), businesses continuously transmit their accounting data electronically to the Independent Authority for Public Revenue (AADE), which uses it to automatically generate risk profiles and pre-fill tax returns. The date originally set for 2 February 2026 for mandatory electronic invoicing (e-invoicing) between businesses (B2B) was postponed by one month: it has applied since 2 March 2026, initially for large enterprises (gross revenue in 2023 over €1,000,000), and will apply from 1 October 2026 for all other businesses. At the same time, the digital delivery note system (Ψηφιακό Δελτίο Αποστολής) is being expanded, which also allows the transport of goods to be tracked electronically and reported to AADE.
Tax Certificates from Auditors and Tax Advisors
Sworn auditors continue to confirm compliance with tax rules for larger businesses as part of the statutory audit; AADE additionally carries out its own risk-based spot checks. Where tax evasion is found, both the company and the advisors involved face the relevant criminal and administrative consequences.
Value Added Tax
The standard rate of VAT is 24%; reduced rates of 13% and 6% apply, among other things, to certain foodstuffs, hotel services, medical equipment, and books and medicines; time-limited reductions apply to certain islands.
FAQ
Capital companies pay a uniform 22% corporate income tax on their total profits, regardless of whether the profits are retained or distributed. Where the profits are subsequently distributed as a dividend, an additional 5% withholding tax is levied at the level of the company, which the company withholds and remits.
Where vehicles or similar assets are acquired in the company's name and used privately without this being declared in the user's own tax return, the costs of use and maintenance, together with any rental payments, are treated as a benefit in kind of the user (managing director, chairman of the board, shareholder) and taxed accordingly. The company's books form the basis of assessment.
VAT in principle covers all economic activities for which no express exemption exists under EU law. The standard rate of VAT in Greece is currently 24% (since 1 June 2016); alongside it, a reduced rate of 13% and a heavily reduced rate of 6% apply to certain goods and services.
Simplified, indicia-based procedures continue to exist for smaller businesses; however, the actual intensity of control today depends very largely on the tax administration's automated risk analyses, based on the real-time data transmitted via myDATA (see our FAQ on combating tax evasion).
Unjustified individual tax exemptions for businesses have been further reduced in the course of recent years' reforms; special levies on bonus payments by banks and financial companies applied in particular during the crisis years and have since been adjusted.
Sworn auditors and certified tax advisory and accounting firms confirm compliance with tax obligations for smaller businesses. Auditors produce a certificate noting any remarks and violations; accountants and tax advisors confirm the accuracy and completeness of the tax returns filed. Where tax evasion is found, sanctions apply to both the company and the financial professionals involved.
As of June 2026. All information on these pages is provided without guarantee or liability.