Introduction to Corporate Tax in Greece

The corporate tax rate in Greece is set at 22% on net taxable income, as defined under Article 58 of Law 4172/2013 (Greek Income Tax Code). This standard corporate income tax rate in Greece applies to resident legal entities and permanent establishments of foreign companies, forming the basis for financial reporting and tax provisioning.

Corporate tax compliance in Greece requires precise adherence to filing and payment obligations administered by the Independent Authority for Public Revenue (AADE). Legal entities must submit annual corporate income tax returns electronically via the myAADE platform, generally by 30 June following the end of the tax year. Corporate tax payment deadlines in Greece typically allow payment in eight equal monthly installments, with the first installment due by the filing deadline, as specified by AADE. 

Businesses often rely on structured support such as Commenda to manage corporate tax filing in Greece, ensure accuracy, and maintain compliance with evolving regulatory requirements.

Key Takeaways

  • The corporate tax rate in Greece is 22% on taxable profits, with limited variation except for specific sectors such as banking and shipping.
  • Corporate tax is centrally administered by the Independent Authority for Public Revenue, with strict electronic filing requirements via myAADE.
  • Companies must file returns by 30 June (for calendar-year taxpayers) and pay tax in six to eight installments, depending on applicable rules.
  • Greece applies withholding taxes of 5% (dividends), 15% (interest), and 20% (royalties), subject to treaty reductions.
  • Investment incentives, including Development Law benefits and R&D deductions, can reduce the effective corporate income tax rate in Greece.

What Is the Corporate Tax Rate in Greece?

The corporate tax rate in Greece is 22% on net taxable profits, applying to most resident legal entities and permanent establishments of foreign companies. This is the standard corporate income tax rate in Greece under Law 4172/2013 and forms the baseline for corporate taxation.

  • A 22% corporate income tax rate in Greece applies to standard companies, including S.A. and limited liability entities.
  • Certain credit institutions under the deferred tax asset regime are taxed at 29%.
  • Shipping companies may fall under a tonnage tax regime, which replaces corporate income tax for qualifying activities.

Breakdown of Corporate Income Tax Components

The corporate tax system in Greece is centrally administered, with corporate taxation imposed at the national level and no additional municipal income taxes. The framework includes standard corporate income tax, advance payments, and sector-specific regimes governed by Greek tax law.

Key components include:

  • Corporate Income Tax (CIT): The standard corporate income tax rate is 22% on taxable profits for legal entities, excluding specific sectors. Credit institutions participating in the deferred tax assets regime under Article 27A of the Income Tax Code are taxed at 29%.
  • No Local or Municipal Income Taxes: Greece does not impose regional or municipal corporate income taxes, ensuring a single-layer national taxation structure.
  • Advance Tax Payment System: Companies are required to prepay 80% of the current year’s corporate tax liability, calculated based on the previous year’s tax return.
  • Shipping Tonnage Tax Regime:
    • Shipping companies may be taxed under a tonnage tax system, which replaces corporate income tax on qualifying shipping income.
    • This regime applies to Greek and qualifying foreign ship-owning companies and fully exhausts income tax liability on shipping profits and capital gains.
  • Tonnage Tax Reductions and Exemptions: Certain incentives apply under the shipping regime, including:
    • Six-year tax exemption for vessels built in Greek shipyards under the Greek flag.
    • 50% tax reduction for vessels operating international or foreign routes.
  • EU and International Alignment: The tonnage tax framework complies with European Union maritime guidelines and extends to EU-flagged vessels under Law 4336/2015.
  • Pillar Two Implementation: Greece has adopted EU Directive 2022/2523 (Pillar Two) through Law 5100/2024, introducing a global minimum tax framework for large multinational groups.

This structure defines corporation tax in Greece, requiring businesses to assess whether standard corporate income tax or sector-specific regimes apply to their operations.

Corporate Tax Filing Requirements in Greece

Corporate tax filing in Greece is administered by the Independent Authority for Public Revenue through a mandatory electronic system. Companies must follow structured filing, documentation, and payment procedures to remain compliant.

  • Filing Deadline: Corporate income tax returns must be submitted by the last day of the sixth month following the end of the tax year.
  • Tax Year Basis: The taxable period is generally the calendar year, ending 31 December, though some entities may close on 30 June or adopt a foreign parent’s fiscal year.
  • Submission Method: All corporate tax returns must be filed electronically via the myAADE digital platform, with tax assessed upon submission.
  • Payment Structure: Corporate income tax and related liabilities are paid in six equal monthly installments, starting from the last day of the seventh month after year-end.
  • Tax Prepayment Requirement: An 80% advance payment of the current year’s tax is required, calculated based on the prior year’s return and paid alongside installments.
  • Amended Returns: Taxpayers may submit amended returns within 10 days from notification of a provisional tax assessment or before the statute of limitations expires.
  • Audit and Recordkeeping Requirements: Companies must retain books and records for at least five years, as audits may be initiated based on risk criteria by AADE.

Failure to comply with corporate tax filing in Greece may trigger penalties, interest, and audit exposure under the Greek Tax Procedure Code.

Tax Year and Payment Deadlines in Greece

The corporate tax system in Greece defines a standard taxable period and a structured payment schedule, which determines how the corporate tax rate in Greece applies to annual profits.

  • Tax Year: The taxable period is typically the calendar year (1 January to 31 December) and cannot exceed 12 months. Entities owned over 50% by foreign companies may adopt the parent company’s fiscal year.
  • Filing Deadline: Corporate tax returns must be filed by the last day of the sixth month after the tax year ends (commonly 30 June).
  • Payment Timeline: Corporate income tax is paid in six equal monthly installments, beginning by the end of the seventh month following year-end.
  • Advance Tax Payment: Companies must prepay 80% of the current year’s tax liability, based on prior-year filings, integrated into the installment schedule.
  • Special Provisions for New Entities: Newly established companies benefit from a 50% reduction in the tax prepayment for their first three years of operation.

This structured approach to corporate tax payment deadlines in Greece ensures predictable compliance obligations and aligns tax payments with annual financial reporting cycles.

Withholding Taxes and Other Business Taxes in Greece

Withholding taxes represent a key element of corporation tax in Greece, particularly for outbound payments to non-residents. These taxes are imposed at source and may be reduced or eliminated under EU directives or applicable tax treaties.

Withholding Tax Rates:

  • Dividends: 5% standard rate.
  • Interest: 15% standard rate.
  • Royalties and similar payments: 20% standard rate.
  • Technical, management, and consulting fees: 20%, with important exemptions depending on residency status.

Key Exemptions and Special Rules:

  • Greek tax-resident entities are generally not subject to WHT on royalties, consulting, or management fees unless paid to government bodies.
  • Non-resident entities without a permanent establishment (PE) in Greece are typically not subject to WHT on technical or consulting services.
  • EU entities operating through a Greek PE may also benefit from WHT exemptions under Ministerial Circular 1007/2017.
  • Dividend, interest, and royalty payments between qualifying EU parent-subsidiary structures may be fully exempt (0%), subject to minimum ownership thresholds (10%–25%) and holding periods of at least 24 months.

Additional Business Taxes:

  • Value Added Tax (VAT): Standard rate of 24% on most goods and services.
  • Capital Gains Tax: Included in taxable corporate income and taxed at the 22% corporate income tax rate in Greece.
  • Stock Transaction Duty: 0.1% on sales of listed shares.

These provisions significantly affect the effective tax burden beyond the headline corporate tax rate in Greece, especially for cross-border transactions and group structures.

Corporate Tax Incentives, Deductions, and Exemptions

Greece offers a focused set of tax incentives and deductions to support innovation, investment, and sector-specific growth. These measures can materially reduce the effective corporate tax burden for qualifying businesses.

  • R&D Incentives: Companies benefit from enhanced deductions on research and development expenses. Standard deductions can exceed 100% of qualifying costs, with higher benefits (up to 150%–215%) available for collaborations with approved research bodies, startups, or SMEs.
  • Patent Incentives: Profits derived from self-developed, internationally recognized patents may enjoy:
    • Full tax exemption for up to 3 years, and
    • Reduced taxation thereafter, subject to conditions linking the income to R&D activity.
  • Investment Incentives (Development Law): These incentives are targeted at strategic sectors such as green energy, manufacturing, tourism, and digital transformation, with additional benefits for large or regionally significant investments. Eligible projects may receive:
    • Corporate tax exemptions
    • Cash grants or subsidies
    • Leasing and employment support
  • Green and Digital Incentives: Small and medium-sized enterprises (SMEs) may claim additional super deductions for expenses related to sustainability, energy efficiency, and digitalization.
  • Sector-Specific Regimes: Shipping companies can opt for the tonnage tax regime, where tax is based on vessel capacity rather than profits, effectively replacing standard corporate income tax on shipping income.
  • General Deductions: Ordinary business expenses, such as depreciation, interest (subject to limits), and bad debts, are deductible if properly documented and incurred for business purposes.

International Tax Treaties and Double Taxation Avoidance

Greece maintains an extensive network of Double Taxation Treaties (DTTs) to prevent the same income from being taxed in multiple jurisdictions. Greece has signed 57 tax treaties, including agreements with the United States, the United Kingdom, Germany, and India. 

  • Elimination of Double Taxation: Achieved through tax credits or exemptions, allowing foreign taxes paid to offset domestic tax liabilities.
  • Withholding Tax Relief: DTTs may provide a lower WHT rate or a WHT exemption on dividends, interest, and royalties, depending on treaty terms.
  • Permanent Establishment Rules: Define when a foreign company has sufficient presence to be taxed in Greece.
  • Exchange of Information: Facilitates cooperation between tax authorities to improve transparency and compliance.

Businesses operating cross-border can reduce their effective corporate tax rate in Greece by applying treaty benefits correctly and documenting eligibility under OECD-aligned rules.

How Commenda Supports Corporate Tax Compliance in Greece

Managing corporate tax compliance in Greece requires coordination across filings, reporting systems, and regulatory updates. Commenda provides an integrated platform designed for international finance teams handling corporation tax in Greece and beyond.

  • Entity Setup and Governance: Incorporate and manage entities in Greece with automated workflows, compliance tracking, and real-time deadline monitoring.
  • Corporate Tax and Reporting: File corporate tax returns, manage financial reporting, and maintain audit-ready documentation across multiple jurisdictions.
  • Global Indirect Tax Automation: Handle VAT compliance, including quarterly filing and payment deadlines on the 20th day following each taxable period.
  • Transfer Pricing Compliance: Generate OECD-compliant documentation and maintain defensible transfer pricing policies.
  • Compliance Monitoring: Track regulatory changes, filing obligations, and exposure risks with automated alerts and dashboards.
  • Expert Advisory Access: Connect with vetted tax professionals, including CPAs and legal experts, for jurisdiction-specific guidance.

Get expert help with tax compliance in Greece through Commenda to ensure accurate filings, timely reporting, and full regulatory adherence.

Common FAQs About Corporate Tax in Greece

1. What is the current corporate tax rate in Greece?

The corporate tax rate in Greece is 22% on net taxable income, as defined under Law 4172/2013.

2. How is the corporate income tax calculated in Greece?

Corporate income tax is calculated by applying the 22% corporate income tax rate in Greece to net taxable profits after allowable deductions and adjustments.

3. Are there different corporate tax rates for small businesses in Greece?

No reduced corporate income tax rate in Greece applies specifically to small businesses; the 22% rate generally applies uniformly.

4. When are corporate tax returns due in Greece?

Corporate tax returns must be filed by the last day of the sixth month following the tax year-end, typically 30 June.

5. What are the penalties for late corporate tax filing in Greece?

Late filing penalties range from €100 to €500, depending on accounting obligations, plus interest on overdue tax at 0.73% per month.

6. What incentives or deductions are available for companies in Greece?

Companies may access R&D super deductions, Development Law incentives, and EU directive exemptions, subject to eligibility criteria.

7. Is there a minimum corporate tax in Greece?

Greece does not impose a fixed minimum corporate tax; liability depends on taxable profits and applicable adjustments.

8. Are foreign companies taxed differently in Greece?

Foreign companies are taxed only on Greek-source income, unless they operate through a permanent establishment in Greece.

9. What services does Commenda provide for corporate tax compliance in Greece?

Commenda provides entity management, corporate tax filing, VAT automation, transfer pricing documentation, and compliance monitoring, all within a unified global platform.