Import Procedures

For goods of a value under EUR 1,000, a verbal declaration at Customs and presenting the invoice, is sufficient. For higher values, you must deposit the following documents at the Customs office:

1. a brief declaration (air or sea transport) to register goods.
2. a common law declaration (SAD, single administrative document), as well as the accompanying documents to allow their clearance.

The SAD form can be obtained from a Chamber of Commerce or an approved printer. A computerised Customs clearance platform (SOFI: International freight computer system) can be accessed in Customs offices or in some Chambers of Commerce.

If deliveries and purchases are made within the European Community, the declaration of exchange of goods (DEB) or Intrastat declaration must be sent to the Customs service.

As part of the 'SAFE' standards advocated by the World Customs Organisation (WCO), the European Union has set up a new system of import controls, the 'Import Control System' (ICS), which aims to secure the flow of goods at the time of their entry into the customs territory of the EU. This control system, part of the Community Programme eCustoms, has been in effect since 1 January 2011. Since then, operators are required to pass an Entry Summary Declaration (ENS) - which contains advance cargo information about consignments entering the EU - to the customs of the country of entry, prior to the introduction of goods into the customs territory of the European Union. The EU recently introduced a new import control system called ICS2 to implement the EU customs pre-arrival security and safety programme.

Since 1 July 2009, all companies established outside of the EU are required to have an Economic Operator Registration and Identification (EORI) number if they wish to lodge a customs declaration or an Entry/Exit Summary declaration.

For more information, please visit the website of the EU Customs Union.

Specific Import Procedures

Pursuant to rules that apply to intra-European trade, some goods are prohibited or subject to particular formalities (medicines for human use, waste, plants or live animals). For further information, click here.
Greece has maintained a de facto ban on genetically modified (GM) products. Moreover, the EU regulation framework implies specific procedures regarding the import of several products, notably agricultural and fisheries production.

Distribution channels

According to Euromonitor, Greeks remain highly sensitive to price and tend to opt for proximity to save money. According to IELKA, the Greek Institute of Retail Consumer Goods, the economic crisis has brought a change in the dietary patterns of the Greeks, who are ordering out less and eating at home more. These shifts in consumer behaviour translated to changes in grocery store layouts, as packaged snacks and cold drinks became more easily available, while stores also increased their ready-to-eat food options. Greek consumers' limited purchasing ability forced them to cut down food spending. Food products in the market are becoming more diversified. Consumers are more open to diverse products, creating opportunities for new and foreign products.

Supermarkets are by far the largest modern grocery retail format in Greece but they are facing increased competition from the growing number of discounter outlets (Euromonitor). The market size of the supermarkets and grocery stores industry has declined 0.1% per year on average in value between 2017 and 2022. The sector’s revenues grew by 1.3% in 2022, reaching EUR 14.2 billion (IBISWorld).

Traditional grocery retailers represent a substantial proportion of grocery sales in Greece, although they are facing competition from modern grocery retailers, which can use their size and scale to offer bigger discounts and better promotional offers. Another trend is favouring more frequent visits to retail outlets with a smaller average spend per visit in local stores, prompting a shift towards convenience stores and smaller supermarkets. However, during the Covid-19 pandemic, more consumers did less frequent, but larger, shopping trips in order to minimise their risk of contagion (Euromonitor).

Furthermore, demand for premium-quality food and drink is expected to keep growing in 2022, together with the number of shops offering Greek, organic and/or gourmet products.

Distribution market players

Sklavenitis and Vassilopoulos remained the leading players during 2021, accounting for close to half of the retail current value sales of all supermarkets (Euromonitor). The top five grocers, in terms of turnover, accounted for around EUR 7.9 billion in total, or approximately 75% of the grocery sector in 2020. The Greek supermarkets chain Sklavenitis continued to dominate the market with a turnover of EUR 3.15 billion and 31% market shares in 2020 (KPMG). Sklavenitis operates with the Sklavenitis and Chalkiadakis brands in supermarkets, and has an estimated half a million Greeks visiting its outlets each day. The second player is Koninklijke Ahold Delhaize NV‘s Alfa-Beta Vassilopoulos, with 19.9% market shares in 2020 (KPMG). Metro SA’s My Market and Diamantis Masoutis SA’s Masoutis had retail value shares of 13.1% and 8.7% respectively in 2020 (KPMG).

Greece has a highly fragmented market when it comes to independent traditional grocery retailers and small chains with a regional presence. Venetis, which increased his number of outlets, continued to lead the fragmented traditional grocery retailers channel in 2019, followed by Max Perry Chocolate.

Retail Sector Organisations

Federation of Greek Food Industry
Hellenic Retail Business Association

Consumption Taxes

Nature of the Tax

Value-added Tax (VAT)

Tax Rate

24%

Reduced Tax Rate

A reduced VAT rate of 13% applies to hotel accommodation services, food services from restaurants, grills, taverns, coffee shops, and cafeterias (excluding entertainment centers), services for boarding schools, and facilities for disabled individuals, people with mental disabilities, mental disorders, and substance use, specific oil types, meat and fish preparations, sugars, sugar confectionery, edible preparations based on cereal, flour, starch, or milk, vegetable, fruit, nut preparations, and juices, coffee, cocoa, tea, and related preparations (until June 30, 2024), sauces, soups, ice creams, vinegar, salt, medical supplies such as bathroom seats, colostomy socks, and blood purification items for people with disabilities, non-alcoholic beverages and gaseous water, services from cafes, restaurants, wineries (excluding alcohol beverages), taxi transportation (temporary reduction until June 30, 2024), imported art, zoo tickets, gym memberships, dance school services, agricultural and forestry machinery, devices, and tools.

A super-reduced 6% rate applies to books and music books (under tariff code 4904), newspapers, magazines, theater and concert tickets, cinema tickets, electricity and gas supply, protective masks, gloves, antiseptic products, wipes, soap, and hygiene products, ethyl alcohol (if used for antiseptic production), industrial food and animal feed residues (excluding pet food, effective from October 1, 2021), defibrillators, dialysis and filtration equipment, and electronic publications of visual and audio books (excluding solely advertising or music content publications).

A reduced VAT rate of 4% is applicable to services provided under contracts for works exclusively aimed at eliminating architectural barriers that hinder the mobility of disabled individuals in public or private buildings or buildings of public interest.

The islands of Lesvos, Chios, Samos, Kos, and Leros, affected by the refugee crisis, benefit from a 30% reduction in VAT rates compared to the standard rates. This reduction, termed "super reduced VAT rates," has no time limit but may be revoked by Ministerial Decision.

Other Consumption Taxes

Excise duties are imposed on energy and electricity products (i.e. petrol, natural gas, and electricity), manufactured tobacco, alcoholic products, and coffee.
Stamp duty is levied on certain transactions at 3.6%, 2.4%, or 1.2%.
A luxury tax is imposed on owners of swimming pools and cars with engine capacity higher than 1,929 cc.
Consumers are subject to a special plastic bag duty of 7 cents per bag, excluding biodegradable bags. Additionally, a uniform call rate of 80 cents per kilogram is applied to non-recycled plastic packaging waste under Council Decision (EU, Euratom) 2020/2053, implemented in Greece by L. 4783/2021. A 4-cent environmental protection levy is imposed per product on plastic packaging for food and beverages sold by catering or retail companies, considering plastic covers or lids separately. Furthermore, consumers face a recycling duty of 8 cents per item with PVC packaging as of June 1, 2022, per Art. 80 of L. 4819/2021. These levies are collected by traders at purchase, subject to VAT. Lastly, the hospitality sector is subject to a climate crisis mitigation duty per day and per room or apartment for accommodations including hotels, furnished rentals, and short-term rentals under self-catering accommodations.

Corporate Taxes

Company Tax

22%

Tax Rate For Foreign Companies

A firm is deemed resident if it is registered or its effective centre of management is in Greece, as well as if its registered seat is in Greece. Resident companies are taxed on their worldwide income, whereas non-resident companies are only taxed on their Greek-sourced income.

Capital Gains Taxation

Capital gains are taxed as normal corporate income at the standard rate of 22%. Capital gains derived from the sale of shares in an EU subsidiary are tax-exempt in case the participation is greater than 10% and has been held for a minimum of 24 months.

Main Allowable Deductions and Tax Credits

In general, all ordinary business expenses and expenses made for scientific and technological research are deductible. The Income Tax Code includes a list of non-deductible expenses. The new code does not mention the deductibility of donations to charities, in contrast to the previous version. Consequently, Greek tax authorities have to review each donation case individually to determine if it qualifies for tax deduction, similar to goodwill provisions. Expenses linked to corporate social responsibility actions can be deducted in the year they were incurred if the company's accounting result is profitable.
Certain bad debt provisions and write-offs are deductible. According to the Greek Accounting Standards (Law 4308/2014), start-up expenses are tax-deductible within the year that they have been incurred if they do not fall within a category of assets (including tangibles and intangibles - conditions apply).
Corporate social responsibility (CSR) expenses are deductible if they're deemed in the company's interest or part of its regular operations, applicable in the tax year of occurrence. Deductions are contingent on the company's profitability, except for state-requested actions.

Royalties, interest, and service fees paid to foreign affiliates are deductible expenses under certain conditions. Interest deductibility is subject to restrictions.

Taxes, excluding income tax, extraordinary contributions, and non-deductible VAT associated with expenses, are acknowledged as deductible. However, fees from criminal activities, penal clauses, fines, and penalties are not recognized as deductible expenses.

Net operating losses can be carried forward up to five years to offset company benefits, whereas the carryback of losses is not permitted.

Other Corporate Taxes

A 0.2% capital duty is levied on increases in share capital, excluding capital issued during company formation or invested solely in R&D activities, which are exempt. Additionally, a 0.1% surcharge benefiting the competition committee is imposed on capital contributions to SA, whether during formation or subsequent increases.

In Greece, real estate ownership is subject to the Uniform Tax on the Ownership of Real Estate Property (ENFIA), comprising a principal tax on each property and a supplementary tax on the total value of property rights. This tax isn't based on the objective property value but determined by factors recorded in the land registry or ownership title. The principal tax on buildings is calculated by multiplying square meters by a rate ranging from EUR 2 to EUR 16.20, with additional coefficients such as location and use. Similarly, the principal tax on land is determined by square meters and rates ranging from EUR 0.0037 to EUR 9.2500, plus location and use coefficients. A supplementary tax of 5.5‰ is imposed on the total property rights value, with self-used properties taxed at a reduced rate of 1‰.
Real estate transfer tax (RETT) is imposed on the value of transferred property at a flat rate of 3.09% (including the municipality surcharge). Such tax is not imposed if VAT is due on the purchase of new buildings.
Stamp duty may be imposed on certain transactions, with rates varying between 1.2%, 2.4%, or 3.6%.

Social security contributions are due on salary and benefits in cash or in kind granted by an employer to its employees. For the primary social security fund (EFKA), social security contributions are withheld at 13.87% at the level of the employee and at 22.29% at the level of the employer (capped at EUR 6,500/month). Furthermore, employers are liable to submit payroll withholding taxes on monthly salary payments under a Pay-As-You-Earn system (PAYE).

A 0.1% listed stock sales tax applies to the sale of shares listed on a Greek regulated market or multilateral trading facility, with exemptions available. The tax is based on the sale price and is paid by the seller, whether an individual or entity, regardless of citizenship, residency, or registered seat.

Consumers are subject to a special plastic bag duty of 7 cents per bag, excluding biodegradable bags. Additionally, a uniform call rate of 80 cents per kilogram is applied to non-recycled plastic packaging waste under Council Decision (EU, Euratom) 2020/2053, implemented in Greece by L. 4783/2021. A 4-cent environmental protection levy is imposed per product on plastic packaging for food and beverages sold by catering or retail companies, considering plastic covers or lids separately. Furthermore, consumers face a recycling duty of 8 cents per item with PVC packaging as of June 1, 2022, per Art. 80 of L. 4819/2021. These levies are collected by traders at purchase, subject to VAT. Lastly, the hospitality sector is subject to a climate crisis mitigation duty per day and per room or apartment for accommodations including hotels, furnished rentals, and short-term rentals under self-catering accommodations.

Other Domestic Resources

Directorate General for Taxation of the Hellenic Ministry of Finance

Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed

List of the double taxation treaties signed by Greece

Withholding Taxes

Dividends: 0% (if the dividend distribution falls under the purview of the EU directive on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States); 5% (dividends received on or after 1 January 2020)
Interest: 15%,
Royalties: 0% (resident corporations)/20% (individuals and non-resident corporations)