Employment in Greece has constantly decreased since 2015 to 24.47%. The most common type of work contract in Greece is the full-time contract, with an indefinite duration. Part-time work isn’t common and the maximum length of a single fixed-term contract is 36 months.
There are several key areas to be aware of within the Greek employment regulatory framework, especially for companies that plan to initiate a full local office and human resources department. These challenges can be mitigated by use of a locally sourced payroll provider who is familiar with all of the local laws and rules for both local employees as well as foreign nationals.
In 2014, Greece made paying taxes more costly for companies by increasing the corporate income tax rate; though it also reduced the employers’ contribution rate to the social security fund.
In 2016, however, Greece made paying taxes less costly for companies by reducing the rates for social security contributions paid by employers, making insurance premiums fully tax deductible and lowering property tax rates. At the same time, it defined entertainment expenses as nondeductible, reduced the depreciation rates for some types of fixed assets and increased the tax on interest income
Non-EEA nationals must obtain a work permit prior to staring their employment activity in Greece. Work permits in Greece are employer-specific (although there can be exceptions), occupation-specific, and location-specific, and are normally valid for one year.
A worker from a non-EU country must first obtain a visa to enter Greece and then apply for the residence/work permit once in Greece.
Greek company law describes several ways for establishing a business and provides for companies incorporated in Greece to be either personal or capital-based. There are five main types of business available to foreign companies in Greece, namely:
Companies entering Greece must make a decision whether to use their own resources for a Do-It-Yourself (DIY) approach, or to use a Global Employment Organization to handle payroll and employment responsibilities. A GEO or Greece Employer of Record solution makes it faster, easier and cheaper to deploy staff if they don’t have a Greek entity established that can run payroll.
A DIY approach will typically take 6-9 months until there is a properly incorporated WFOE ready to run payroll and cost up to 6 figures if registered capital is required. Shield GEO can deploy foreign staff in 4-6 weeks and local staff in 48 hours. Additionally, Shield GEO is responsible for all compliance issues related to the employment.
|Management Fee for Employer of Record Services / Monthly Payroll Costs||
Please contact us for a quote
Shield GEO pays the employee on a monthly basis, typically on the last working day of the month although we can adapt to your preferred schedule. Income tax and social security (where applicable) are deducted at source and paid to the local tax authorities.
|Tax Returns Supplied||
|Employers Social Security and statutory contributions||
24.56% as of July 2014, calculated on gross salary
|Employees Social Security and statutory contributions||
15.5%, calculated on gross salaries
|Corporate Income Tax Rate||
26% on taxable profits
Royalties and other payments 20%.