Shipping Companies

Articles 25 of law 27/1975 as replaced by article 28 of law 814/78, permits the establishment in Greece of the offices or branch offices of foreign shipping companies of any type or form, provided they are engaged in the following activities.

Ship Managers, Ship Operators, Chartering, Insurance, Average adjustment, Brokerage services (sales and purchases, shipbuilding, freight and insurance) involving of over 500 GRT under Greek or foreign flag (with the exception of coastal passenger vesse ls), Representation of companies engaged in the same activities. The above mentioned companies are also subject to the provisions of Laws 89/1967 and 378/1968.

Facilities and tax Exemptions

 

• Foreign companies owing vessels under foreign flags, which are managed or operated by a greek or foreign company, as well as the offices or branch offices (established in Greece) of foreign companies are exempt from paying taxes, duties levies or with holdings by the state with regard to the income they earn from the activities or services listed above.
• The same exemption also applies for the shareholders or partners, with regard to the income they earn from share dividends or the distribution of profits , whether directly or through investment portfolio companies.
• The foreign personnel of such companies are granted work permits for a period of up to two years which may subsequently be renewed upon expiration of each such tow-year period.

In order for foreign shipping companies to qualify for exemptions and facilities the following are required.

• A permit granted by joint decision of the Ministers of the National economy, Finance and Merchant Marine, which is valid for five years commencing as of the date of its publication in the Government Gazette.
• The importation of foreign exchange, which does not have to be deposited with the bank of Greece, of the amount of 50,000 dollars annually, to cover the operating expenses of the office or branch office in Greece.
• The importation to Greece of foreign exchange which does not have to be deposited with the bank of Greece, for payments on behalf of the said companies or on behalf of third parties.
• The depositing of a guarantee with the Greek state to secure adherence to the terms of the establishment permit, for an amount not less than 5,000 dollars or the equivalent sum in drachmas.

Settlement of Disputes

Disputes arising between the Greek State and a foreign company pertaining to the interpretation of or gaps in the decision of the Ministers shall resolved through the arbitration of two arbitrators, one of whom shall be appointed by the Greek state and the other by the company in question.

Construction Companies

According to article 9 of Law 4171/1961, as amended by article 23 of Law 1262/1982 which continues to remain in force by virtue of Law 1982/90, it is permissible for foreign construction companies whose business object lies outside Greece to establish themselves in Greece, following the approval of the Minster of National Economy. The incentives foreseen for the aforementioned foreign companies are the following.

1. Exception from income tax and in general all duties, levies or withholding by state or any third party, with regard to income originating from operations outside Greek territory.
2. The right to engage their employees on an overtime basis, provided this is dictated by a company's requirements, on the condition that the personnel so employed are remunerate in accordance with relevant legislation. Overtime rates are approved monthly by the Labor Ministry.
3. Such companies are entitled to the incentives of Law 1892/90.With regard to the investment grant, interest rate subsidy and tax allowance, they are eligible for the incentives applicable for Area B, irrespective of the location in which they are established.

Prerequisites for Establishment

The prerequisites for establishment of a foreign construction company are the following:

1. The personnel of such companies must be composed of at least 4/5 (of the entire number) and at least 3/5 (of each employee category) Greek citizens.
2. The company must deposit a letter of guarantee, issued by a recognized bank in Greece or abroad, for the amount of 50,000 dollars, which be forfeited in favor of the Greek state in the event that the provisions of law or the terms of the act granting approval for establishment are violated by either the company or any of its personnel.
3. The company must import, in the case of a company with a staff of four, 50,000 dollars in foreign exchange to cover the company's expenses. Each additional staff member entails a further 12,000 dollars annually.

-- Greek construction companies whose operations are outside Greek territory are also entitled to the incentives of the same law, in accordance with the prerequisites and restrictions applicable for their foreign countries, with exception of (b) and (c) above.

In order to qualify for the incentives of this law, they must deposit a letter of guarantee for the amount of 25,000 dollars. This applies only for operations whose object lies abroad, even if a part or the entirely of such operations are carried out at their offices in Greece.

Construction Companies

According to article 9 of Law 4171/1961, as amended by article 23 of Law 1262/1982 which continues to remain in force by virtue of Law 1982/90, it is permissible for foreign construction companies whose business object lies outside Greece to establish themselves in Greece, following the approval of the Minster of National Economy. The incentives foreseen for the aforementioned foreign companies are the following.

1. Exception from income tax and in general all duties, levies or withholding by state or any third party, with regard to income originating from operations outside Greek territory.
2. The right to engage their employees on an overtime basis, provided this is dictated by a company's requirements, on the condition that the personnel so employed are remunerate in accordance with relevant legislation. Overtime rates are approved monthly by the Labor Ministry.
3. Such companies are entitled to the incentives of Law 1892/90.With regard to the investment grant, interest rate subsidy and tax allowance, they are eligible for the incentives applicable for Area B, irrespective of the location in which they are established.

Prerequisites for Establishment

The prerequisites for establishment of a foreign construction company are the following:

1. The personnel of such companies must be composed of at least 4/5 (of the entire number) and at least 3/5 (of each employee category) Greek citizens.
2. The company must deposit a letter of guarantee, issued by a recognized bank in Greece or abroad, for the amount of 50,000 dollars, which be forfeited in favor of the Greek state in the event that the provisions of law or the terms of the act granting approval for establishment are violated by either the company or any of its personnel.
3. The company must import, in the case of a company with a staff of four, 50,000 dollars in foreign exchange to cover the company's expenses. Each additional staff member entails a further 12,000 dollars annually.

-- Greek construction companies whose operations are outside Greek territory are also entitled to the incentives of the same law, in accordance with the prerequisites and restrictions applicable for their foreign countries, with exception of (b) and (c) above.

In order to qualify for the incentives of this law, they must deposit a letter of guarantee for the amount of 25,000 dollars. This applies only for operations whose object lies abroad, even if a part or the entirely of such operations are carried out at their offices in Greece.