Greece Corporate Tax 2026: 22% CIT Rate, VAT 24% & Business Guide
What taxes does your business pay in Greece in 2026? Flat 22% corporate rate, 24% VAT, 5% dividend withholding tax, R&D deductions, and filing rules for IKE, EPE, AE, and sole proprietors.
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Tax Residency and Rates
A company is a Greek tax resident if it is incorporated under Greek law, has its registered office in Greece, or its place of effective management is in Greece. Residents pay 22% CIT on worldwide income. Non-residents pay 22% only on Greek-source income. Capital gains are treated as ordinary business income and taxed at 22%. Losses carry forward for five consecutive tax years.
Greek residents: 22% CIT on worldwide income
Non-residents: 22% on Greek-source income only
Banks (DTA regime): 29% CIT rate
Dividend WHT: 5% to individuals and companies
Residency set by place of incorporation or effective management
IKE (Private Company)
Corporate Tax Rate
22%
Flat rate on net profits
Minimum Capital
€1
No effective minimum
Dividend WHT
5%
On profit distributions
Most popular form for startups and SMEs since 2012
Limited liability for all partners
Separate legal entity
Single shareholder allowed
No residency requirement for owners
Sole Proprietorship (Atomiki Epicheirisi)
Tax Rate
9–44%
Progressive personal income tax
Capital Required
None
No minimum
Liability
Unlimited
Personal assets at risk
Taxed under personal income tax rules
No separate legal entity
Unlimited personal liability
Minimum presumptive income rules apply (up to €50,000)
Suitable for freelancers and micro-businesses
Branch of Foreign Company
Tax on Greek Profits
22%
CIT on Greek-source income
Liability
Parent Company
Full parent responsibility
Dividend WHT
5%
On profit repatriation
22% CIT on Greek-source income only
Simpler registration than subsidiary
Parent company fully liable
Must register with GEMI and AADE
Subject to Greek transfer pricing rules
AE (Société Anonyme)
Corporate Tax Rate
22%
Flat rate on profits
Minimum Capital
€25,000
Must be paid in full
Dividend WHT
5%
On distributions
Suitable for large businesses and public listings
Requires Board of Directors (min. 3 members)
Mandatory annual audited financial statements
Can issue shares and bonds
Higher governance requirements than IKE
Corporate Tax Rate Overview Greece 2026
| Business Type | Tax Rate | Key Features |
|---|---|---|
| IKE (Private Company) | 22% flat CIT | Min. capital €1, limited liability, 5% dividend WHT |
| EPE (Limited Liability Company) | 22% flat CIT | Min. capital €4,500, limited liability, 5% dividend WHT |
| AE (Société Anonyme) | 22% flat CIT | Min. capital €25,000, board required, public listing possible |
| OE/EE (Partnerships) | 22% at company level | 22% CIT + 5% WHT on distributions; OE has unlimited liability |
| Sole Proprietor | 9–44% progressive PIT | No separate entity, unlimited liability, min. presumptive income |
| Branch of Foreign Company | 22% on Greek income | Parent liable, no WHT on branch profits under EU rules |
| Credit Institutions (DTA regime) | 29% CIT | Banks and financial institutions under Art. 27A ITC |
CIT rate reduced from 24% in 2021 to 22% in 2022 and remains at 22% for 2026. This applies to all standard legal entities.
VAT Rates and Rules in Greece 2026
Standard and Reduced VAT Rates
Greece applies a 24% standard VAT rate — among the highest in the EU. A 13% reduced rate covers fresh food ready to eat, non-alcoholic drinks, coffee, and certain foodstuffs. A 6% super-reduced rate applies to medicines, books, newspapers, and theatre tickets. On five Greek islands (Lesbos, Chios, Samos, Kos, Leros), all VAT rates are reduced by 30%. Businesses must register for VAT with AADE through TAXISnet. No minimum turnover threshold for VAT registration — all taxable businesses must register.
VAT Rate Structure Greece 2026
| VAT Rate | Applies To | Examples |
|---|---|---|
| 24% (standard) | Most goods and services | General commerce, professional services, electronics, clothing |
| 13% (reduced) | Food and beverages | Ready-to-eat food, non-alcoholic drinks, coffee, aerated water |
| 6% (super-reduced) | Essentials and culture | Medicines, books, newspapers, theatre tickets |
| 0% (exempt with credit) | International transactions | Exports, intra-EU B2B supplies, international shipping |
| Reduced by 30% | Five Aegean islands | Lesbos, Chios, Samos, Kos, Leros — all standard rates reduced 30% |
All businesses with taxable activity must register for VAT in Greece regardless of turnover. Small businesses supplying under €10,000/year may qualify for a special VAT exemption regime.
Withholding Taxes on Dividends, Interest, and Royalties
Standard Withholding Tax Rates 2026
Greece withholds tax at source on payments of dividends (5%), interest (15%), and royalties (20%). The 5% dividend rate is among the lowest in the eurozone. Intra-group dividends paid between qualifying EU corporate shareholders are exempt under the EU Parent-Subsidiary Directive if the recipient holds at least 10% for 24 months. Royalties paid to Greek resident corporations are fully exempt. Double Tax Treaties with 57+ countries can reduce or eliminate withholding taxes.
Dividends: 5% WHT to individuals and companies
Interest: 15% WHT (5% on listed corporate bonds from April 2025)
Royalties: 20% WHT (exempt for Greek residents)
Intra-EU dividends: 0% if 10%+ holding for 24 months
Double Tax Treaties with 57+ countries reduce rates
Corporate Tax Deductions and Incentives 2026
R&D Super-Deduction
SMEs can deduct 315% of eligible R&D expenses. Larger companies deduct 200–250% under Article 22A of the Greek Income Tax Code. The super-deduction reduces taxable income significantly. For example: €100 spent on R&D creates a €200–315 deduction. Full documentation of qualifying projects is required.
Patent Box Regime
Profits derived from self-created, internationally recognised patents are fully exempt from CIT for up to three years from the first revenue. For the following seven years, 10% CIT applies. Aims to retain IP ownership in Greece and encourage innovation. Qualifying patents must be registered in the company's name.
Tax Loss Carryforward
Tax losses carry forward for five consecutive tax years to offset future profits. Losses are forfeited if ownership of the company changes by more than 33% within a tax year. No loss carryback is allowed. Losses from share transfers have special rules under a grandfather clause applying until 31 December 2026.
Investment Incentives (Development Law)
Greece's Development Law supports 13 strategic business areas including green transition, digital transformation, tourism, and manufacturing. State aid can take the form of tax exemptions, cash grants, leasing subsidies, or wage cost subsidies. R&D equipment may be depreciated at 40% annually. Audio-visual production and game development qualify for a 30% tax deduction.
Pillar Two Global Minimum Tax
15% Global Minimum Tax for Large Groups
Greece has implemented the EU Pillar Two directive. Multinational groups with revenues exceeding €750 million in two of the last four years are subject to a minimum effective tax rate of 15%. The Income Inclusion Rule (IIR) and Undertaxed Profits Rule (UTPR) ensure top-up taxes where the effective rate falls below 15%. A Qualified Domestic Minimum Top-up Tax (QDMTT) applies at the local level. Safe harbor provisions and transitional rules are in force.
Applies to groups with €750M+ annual revenue
15% global minimum effective tax rate
IIR and UTPR rules enforce minimum taxation
QDMTT applied domestically
Safe harbors and transitional rules available
Employer Social Security Contributions
EFKA Contributions 2026
Social security contributions in Greece (EFKA) total 35.16% of gross salary — split 21.79% employer and 13.37% employee. The monthly salary cap for contributions is €7,761.94 from 1 January 2026. Employers also withhold and pay income tax under payroll rules effective from 1 January 2026. Self-employed professionals pay fixed monthly contributions based on selected income categories rather than a percentage of profit.
Total EFKA: 35.16% of gross salary
Employer share: 21.79% of gross wages
Employee share: 13.37% of gross wages
Monthly salary cap: €7,761.94 (from Jan 2026)
Self-employed pay fixed monthly categories, not %
Corporate Tax Filing and Compliance
Annual Returns and Payment via TAXISnet
All companies file corporate tax returns electronically via TAXISnet — operated by the Independent Authority for Public Revenue (AADE). The return is due by the last working day of the sixth month after year-end (i.e., end of June for calendar-year companies). Tax is paid in up to eight equal monthly installments. Advance tax payments equal 80% of the prior year's tax liability. New companies pay only 40% (50% of the standard 80%) during their first three years. Late payment interest: 0.73% per month.
Filing deadline: end of June (for calendar-year companies)
All filings via TAXISnet / myAADE portal
Tax paid in up to 8 equal monthly installments
Advance tax payment: 80% of prior year liability
New companies: 40% advance rate for first 3 years
Late payment interest: 0.73% per month
Company Formation and Registration
Setting Up a Business in Greece
All companies register through the General Commercial Registry (GEMI) and receive a Tax Identification Number (AFM) from AADE. Registration typically takes 3–10 business days through the digital one-stop shop. IKE requires no minimum capital (€1 is sufficient). EPE requires €4,500. AE requires €25,000. Foreign investors can own 100% of a Greek company. No mandatory Greek-resident director, but one legal representative must be appointed. Banks may require a local resident director for account opening.
IKE minimum capital: €1
EPE minimum capital: €4,500
AE minimum capital: €25,000
Incorporation time: 3–10 business days
Registration fee via GEMI: ~€60–500 depending on entity
Tax (AFM) + VAT registration mandatory after incorporation
2026 Key Changes and Updates
Corporate Tax Stable at 22%
CIT rate remains 22% for 2026, unchanged since 2022. Reduced from 24% (2021) to 22% (2022–2026). No further reductions currently planned. Banks under DTA regime continue at 29%.
New Personal Tax Scale from 2026
From tax year 2026, updated personal income tax brackets apply to employment, pensions, and business income. Taxpayers under 25 pay 0% on the first two brackets (up to €20,000). Those aged 26–30 pay 9% on the second bracket unless they have 4+ dependent children.
Capital Gains Tax Suspension Extended to Dec 2026
The 15% capital gains tax on real estate transfers by individuals remains suspended until 31 December 2026. Companies still pay 22% CIT on gains from property sales. The suspension has been extended multiple times and its future status is unclear.
Interest on Corporate Bonds Cut to 5%
From 11 April 2025, interest income earned by Greek tax residents from listed corporate bonds is taxed at 5% — down from 15%. Aims to deepen Greece's capital market and attract retail bond investors.
EFKA Cap Raised to €7,761.94/month
Social security contribution ceiling increased to €7,761.94 per month from 1 January 2026. Contributions above this cap are not assessed. Both employer (21.79%) and employee (13.37%) rates are unchanged.
Pillar Two Compliance Ongoing
Global minimum tax (15%) compliance continues for multinational groups with €750M+ revenue. IIR, UTPR, and QDMTT rules in force. OECD guidance continues to be incorporated into Greek domestic law.
Frequently Asked Questions
What is the corporate tax rate in Greece for 2026?
The standard corporate income tax (CIT) rate is 22% for all standard legal entities (IKE, EPE, AE, OE, EE). It applies to worldwide income for Greek tax residents and Greek-source income for non-residents. Banks and credit institutions in the deferred tax asset (DTA) regime pay 29%. The rate was reduced from 24% in 2021 and has remained at 22% since 2022.
What is the difference between IKE, EPE, and AE in Greece?
IKE (Private Company) is the most flexible: minimum capital of just €1, limited liability, single shareholder allowed — ideal for startups and SMEs. EPE (Limited Liability Company) is slightly more formal with €4,500 minimum capital. AE (Société Anonyme) suits large businesses: minimum €25,000 capital, Board of Directors required, mandatory annual audit. All three pay 22% CIT and 5% WHT on dividends.
How are dividends taxed in Greece?
Dividends are subject to a 5% withholding tax (WHT) — one of the lowest rates in the eurozone. This exhausts the tax liability for individual shareholders. Intra-group dividends between qualifying EU companies are exempt from WHT if the parent holds at least 10% for 24 months (EU Parent-Subsidiary Directive). Double Tax Treaties may further reduce rates.
What is the VAT rate in Greece for 2026?
The standard VAT rate is 24% — among the highest in the EU. A 13% reduced rate applies to ready-to-eat food, non-alcoholic beverages, and certain foodstuffs. A 6% super-reduced rate covers medicines, books, newspapers, and theatre tickets. On five Aegean islands (Lesbos, Chios, Samos, Kos, Leros), all rates are reduced by 30%. All businesses with taxable activity must register for VAT with AADE.
What R&D tax incentives are available in Greece?
SMEs can deduct 315% of qualifying R&D expenses from taxable income. Larger companies deduct 200–250% under Article 22A of the Income Tax Code. Greece also has a patent box regime: profits from self-created patents are fully exempt from CIT for three years, then taxed at 10% for the next seven years. R&D equipment can be depreciated at 40% annually.
When is the corporate tax return due in Greece?
The annual corporate tax return must be filed electronically via TAXISnet by the last working day of the sixth month after year-end. For calendar-year companies (January–December), the deadline is the end of June. Tax is paid in up to eight equal monthly installments. Advance payments equal 80% of the prior year's liability (40% for new companies in their first three years).
What are the employer social security contributions in Greece?
Employers pay 21.79% of gross salary in EFKA social security contributions. Employees pay 13.37%, bringing the total to 35.16%. The monthly salary cap is €7,761.94 from January 2026. Self-employed professionals pay fixed monthly category contributions instead of a percentage. A 50% deduction increase applies under certain conditions when hiring young workers.
How do I register a company in Greece?
Register through the General Commercial Registry (GEMI) using the digital one-stop shop portal. The process takes 3–10 business days. After registration, obtain a Tax Identification Number (AFM) from AADE and register for VAT. Minimum capital: IKE €1, EPE €4,500, AE €25,000. Foreign investors can own 100% of a Greek entity in most sectors. Registration fees with GEMI range from €60 to €500 depending on entity type.
Does Greece have a capital gains tax for companies?
Yes. Companies pay 22% CIT on capital gains from all asset disposals, including property and shares — treated as ordinary business income. For individuals, the 15% capital gains tax on real estate transfers is suspended until 31 December 2026. Gains from mergers, divisions, and qualifying corporate reorganisations are tax-exempt at the time of the transaction.
Does Greece apply the global minimum tax (Pillar Two)?
Yes. Greece has implemented the EU Pillar Two directive. Multinational groups with €750M+ revenue in two of the last four years face a 15% minimum effective tax rate. Top-up taxes apply via the Income Inclusion Rule (IIR) and Undertaxed Profits Rule (UTPR). A Qualified Domestic Minimum Top-up Tax (QDMTT) applies locally. Safe harbor provisions and transitional rules are in force.
Calculate Your Greek Corporate Tax
Estimate corporate tax liability, VAT obligations, dividend withholding tax, and employer contributions. Compare IKE vs AE vs sole proprietorship taxation for your business.