Chapter for Greece in: Campbell (ed.), International Franchising Law

STAVROS GEORGIADES

 

Originally published by "Mathew Bender", 2002.

 

INTRODUCTION

[1] Foreign Investment

Foreign investment is regulated by Decree Number 2687/1953, as amended. “Investment” is regarded any transfer to the country of foreign exchange, machinery and materials, inventions, know-how, and commercial and industrial trade marks.

According to the legislation, tax allowances are provided to foreign investors, concerning in particular tax deduction or exemption for a specified period, and the tax status to which the foreign company is subjected is consolidated for a certain period of time, usually a decade. Moreover a prohibition on retroactive taxation exists.

Other incentives include the holding of tax books in foreign currency, the exception of foreign personnel from the formalities required for entrance permit, the exemption from the obligation of securing national insurance for the foreign personnel, and the expansion of possibly more favorable terms provided for in a posterior investment to the previous ones as well.

Incentives available to foreign investors also derive from Law Number 2601/ 1998, which has a broad application, encompassing private investment in a broad range of business activities, such as manufacturing, the electricity and energy industry, the development, production, and trading or provision of high technology products and services, the mining industry, exploitation of renew-able energy sources, construction, and hotels.

Enterprises engaged in international trade also may receive financing by virtue of Law Number 2940/2001, provided they have a paid-up equity capital of at least Drs 300-million and their exclusive object is the conduct of economic or commercial transactions of international nature. Specifically described busi-ness activities also are included within the application of Law Number 2940/2001.

According to Law Number 2601/1998, investors are classified into two broad categories, these being:

(1) “New investors”, consisting of corporations not yet constituted or having been constituted within five years prior to the submission date; and

(2)“Old investors”, consisting of corporations having been constituted at least five years prior to the submission date. [...]

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