Corporate Tax in Greece in 2026: the 22% Rate, Dividends and Taxes for Business

Corporate tax in Greece: the key points in a minute

Let us start with the figure you opened this article for. Corporate tax in Greece in 2026 is 22% on the profit of a legal entity. The rate is flat: both a small company and a large holding pay the same percentage of profit - there is no progressive scale for business here. This rate covers the most common forms - limited liability companies (EPE and IKE), joint-stock companies (AE), and branches of foreign companies on the profit earned in Greece.

But 22% is only the first tier. Once a company has earned profit, paid tax on it and decided to distribute the remainder to the owners, a second tax kicks in - of 5% on dividends, which is withheld at source. In other words, the real burden on the money you, as the owner, ultimately put in your pocket is made up of two parts. It is precisely this two-tier structure that matters to understand from the outset, otherwise your profitability calculations will be wrong.

If you are only just considering Greece as a jurisdiction for business and relocation, it makes sense to view taxes together with a residence permit. The clearest way to stay in the country long term is Greece Golden Visa through real estate investment, while the full map of personal and business taxes is set out in our overview of taxes in Greece.

The 22% corporate tax rate: who pays and on what

The corporate tax rate in Greece is 22%, and it applies to the company net taxable profit, that is, to income minus recognised expenses. The principle is simple: the state takes a percentage not of turnover but of what remains after deducting the costs of running the business. The tax period usually coincides with the calendar year, and the return is filed at its end.

Who pays profit tax in Greece:

• Greek resident companies - on their worldwide profit. A company is considered resident if it is registered in Greece or managed from here.
• Foreign companies - only on profit derived from Greek sources, including through a permanent establishment (branch).
• Various legal forms - AE, EPE, IKE, cooperatives, as well as the profit of permanent establishments.

One important exception concerns banks. Credit institutions that have opted into the deferred tax asset (DTA) regime pay corporate tax at the higher rate of 29%. For the vast majority of ordinary businesses - trade, services, IT, manufacturing - the standard 22% applies. Before registering a structure, it is worth thinking through the legal form: this is covered in detail in the article on registering a company in Greece.

Dividend tax in Greece: 5% at source

Dividends are how the owner actually takes profit out of the company. And here a separate tax applies. The dividend tax in Greece is 5% and is withheld at source at the moment of distribution. That is, when a company that has already paid the 22% corporate tax pays out the remaining profit to shareholders, it additionally withholds 5% and remits it to the budget.

This rate is one of the most lenient in Europe for dividends, and in recent years it has come down: it was once 10%, then 15% in certain periods, and eventually settled at 5%. For an individual receiving dividends, this withheld tax is, as a rule, final: there is no need to pay income tax on this amount again.

A few practical points:

• Withholding at source - the company itself withholds and remits the 5%, and the recipient receives the dividends already net of tax.
• For resident individuals the 5% rate usually settles the obligation in full.
• For non-residents the same logic applies, but the outcome may be adjusted by double taxation treaties between Greece and the recipient country.
• Intra-group dividends between companies are often exempt - more on this in the section on EU directives.

The combination of "22% on profit + 5% on dividends" is the real price a business owner in Greece pays when taking out what they have earned.

The real burden: how the 22% and 5% add up

Now let us do the math with real numbers. This is the key point many people miss when they look only at the 22% rate. The real burden on the money an entrepreneur takes for themselves through dividends is higher, because the taxes stack up.

Let us take a simple example. A company has earned 100 000 € in pre-tax profit.

• Corporate tax 22% = 22 000 €. After it, 78,000 EUR of distributable profit remains.
• Dividend tax of 5% on this 78,000 EUR = 3 900 €.
• The owner is left with about 74 100 €.

In total the state took roughly 25 900 € on 100,000 EUR of profit - the effective burden on distributed profit comes to about 25,9%, not 22%. That is the figure to keep in mind when you compare Greece with other jurisdictions.

If, however, profit is not distributed but reinvested in the company growth, then at this stage only the 22% corporate tax is paid, and the dividend tax is deferred until the moment of actual distribution. This is a legitimate tool for managing the tax burden: as long as the money is working inside the business, the second tier of tax does not kick in.

VAT in Greece: 24% and reduced rates

Besides profit tax, a business in Greece deals with VAT (the Greek abbreviation is FPA). This is an indirect tax that a company adds to the price of goods and services, collects from customers and remits to the state. The standard VAT rate in Greece is 24%.

But there are reduced rates on socially significant categories:

The islands are a separate story. For a number of remote islands, reduced VAT rates supporting the local economy have historically applied, though the list and conditions have changed over time. This point needs to be checked for the specific region where the business operates.

VAT works for a company like this: you charge tax on your sales (output VAT), deduct the VAT paid to suppliers (input VAT), and remit the difference to the budget. VAT returns are filed regularly - monthly or quarterly depending on the accounting system. For a business it is important to keep proper records of input and output VAT, otherwise deductions can be lost.

Small business and the self-employed: their own scale

Not every business in Greece is a company on 22%. A large share of the economy is the self-employed (freelancers, professionals, sole traders), and for them taxation works differently. They pay not corporate tax but income tax on the progressive scale for individuals.

The progressive income tax scale in Greece in 2026 runs from 9% on low incomes up to 44% on high incomes. So a self-employed person with a modest income pays substantially less than 22%, whereas high income is taxed at rates above the corporate one. This makes the choice between self-employed status and registering a company not a formality but a real tax calculation that depends on the income level. The personal scale is covered in detail in the article on income tax for individuals in Greece.

A separate important relief for the smallest businesses is a VAT exemption. Businesses with an annual turnover of up to 10 000 € can enter a special regime and not charge VAT at all. This greatly simplifies life for micro-businesses and beginners: there is no need to keep complex VAT records or file VAT returns.

The self-employed also have their own advance payment - 55% of the calculated tax goes as an advance toward the next year (reduced in the first years for new businesses). So it is important for the self-employed in Greece to set aside money from the outset not only for the current tax but also for this advance.

Advance payments: 80% for companies

This is the feature of the Greek system that often comes as an unpleasant surprise to newcomers. Greece collects corporate tax not only for the past year but also in advance for the coming one. The mechanism is called the advance payment (prokatavoli forou).

How it works for companies:

• At the end of the year a company calculates profit tax for the past period - this is 22% on the actual profit.
• On top of that it must pay an advance of 80% of this same tax amount - toward the coming year.
• The following year the advance paid is credited against the actual tax, and the difference is either topped up or refunded.

In practice this means that in the first profitable year a company pays almost double: the tax for the current year plus 80% in advance for the next. For example, with a tax of 22,000 EUR an advance of about 17,600 EUR is added, and almost 39,600 EUR goes out in a single payment. This is a serious strain on cash flow, and it must be planned for in advance.

Newly formed companies benefit from a reduced advance payment in their first years - this softens the blow to a young business budget. The self-employed, as noted, pay the advance at 55%. The main takeaway: when planning your first year in Greece you cannot look at the 22% rate alone - the real cash outflow in the first profitable year will be noticeably larger.

Comparison with neighbours: Greece, Cyprus, Bulgaria

To understand whether Greece is an expensive jurisdiction or not, you have to compare it with its regional neighbours competing for the same business. And here Greece does not look like the lowest-tax option - it is important to know this .

What the table shows:

• By corporate tax rate Greece (22%) is noticeably more expensive than Cyprus (12.5%) and Bulgaria (10%). That is an objective fact.
• By effective burden on dividends the gap is even starker: in Greece the owner loses about 25.9% of profit, in Bulgaria the combined rate is about 15%, and Cyprus, with its non-dom regime, is one of the most favourable in the EU for an entrepreneur.
• But tax is not the only criterion. Greece offers what its neighbours do not to the same degree: EU and Schengen membership, a strong real estate market, a clear path to a residence permit through the Golden Visa, and its climate and quality of life.

The conclusion: if the sole aim is to minimise business tax, there are cheaper options. But if the business is tied to a presence in Greece, real estate, a family relocation and a residence permit, the 22% rate is a reasonable price for access to the European market and way of life. It helps to view taxes together with tax residency in Greece.

Common business tax mistakes in Greece: an expert view

Over years of practice we have seen that what trips up entrepreneurs in Greece is not exotic complications but the same recurring mistakes. Let us go through them so you do not lose money for no reason.

• Forgetting about the 80% advance payment. The most common beginner mistake. In the first profitable year a business pays almost double the tax, and if the money is not set aside it means a cash gap.
• Counting only 22% and forgetting about dividends. The real burden on distributed profit is about 25.9%, not 22%. The financial model should be built from this figure.
• Losing expense deductions. Undocumented costs, cash expenses above the limits, missing source documents - the tax base swells for no reason.
• Failing to use loss carry-forward. Loss-making years can be offset against profit within 5 years, but only if the losses are correctly recorded in the tax returns.
• Choosing the wrong form - company or self-employed. At a modest income the self-employed can pay less than 22%, at a high income - the opposite. It is a calculation, not a matter of habit.

The Greek tax system forgives a lot, but it does not forgive a poorly thought-out start or sloppy accounting. The sooner the structure is set up, the fewer unpleasant surprises and the more legitimate savings. Current forms, rates and deadlines should always be checked on the official government portal gov.gr.

Bottom line: Greece corporate tax for business

Let us sum up. Corporate tax in Greece in 2026 is 22% on company profits, plus 5% on dividends when profit is taken out by the owner, which together gives a real burden of about 25.9% on distributed profit. On top of that come 24% VAT, 80% advance payments, ENFIA on real estate and mandatory accounting. This is not the cheapest jurisdiction in the region, and that needs to be understood soberly.

But Greece has aces its cheaper neighbours lack: EU and Schengen membership, access to the European market, tax directives for holdings, loss carry-forward, reliefs for small business and the self-employed, and a clear path to a residence permit through investment. For a business tied to a presence in the country and relocation, the 22% rate is a reasonable price for stability and European status.

The optimal strategy is not to look at the rate in a vacuum but to calculate taxes for your specific model: the company form, the volume of profit, plans for distribution and reinvestment, and the link to real estate and residency. If the business goes hand in hand with relocation, it makes sense to build it from the outset together with Greece Golden Visa and check the status through tax residency. And the latest rates and forms should always be checked on the portal gov.gr.

Loss carry-forward and expense deductions

Good news for business: losses in Greece do not expire immediately. If a company ends a year in the red, that loss can be carried forward and offset against the profit of future years. The carry-forward period is five years from the year the loss arises.

This is an important tool for businesses with a long cycle or seasonality. For example, a startup or a development project runs at a loss in its first years and then turns a profit - the accumulated losses will reduce the taxable base of the profitable years, and the real burden will fall. The key is to record losses correctly in the tax returns, otherwise the right to carry them forward can be lost.

As for expenses - the base for calculating the 22% tax - the Greek system allows the deduction of costs that are economically justified and related to the company activity, documented and recorded in the accounts. Deductible items usually include:

• Salaries and employee contributions.
• Office and premises rent, utility bills.
• Purchase of goods, raw materials and supplies.
• Depreciation of fixed assets at the prescribed rates.
• Professional services - accounting, lawyers, marketing.

At the same time, restrictions apply to certain categories, thin capitalisation rules apply to interest, and cash expenses above the limits may be disallowed. Proper expense accounting is the real way to legally reduce the base for the 22% tax, so it is not worth cutting corners on an accountant in Greece.

EU directives: exemption of intra-group dividends

Greece is a full member of the European Union, and this gives businesses serious advantages over companies outside the EU. Greek companies benefit from the European tax directives that eliminate double taxation within the Union.

Key mechanisms:

• The Parent-Subsidiary Directive (2011/96/EU). Dividends that a Greek company receives from a subsidiary in another EU country (or pays to an EU parent company) are exempt from tax where the conditions are met. This means the profit is not taxed twice as it moves through the group.
• A condition on the holding size and holding period. To exempt intra-group dividends you usually need to hold a sufficient participation (typically above a certain threshold) for at least 24 months.
• The Interest and Royalties Directive. Reduces or eliminates withholding tax on interest and royalty payments between related EU companies.

For holding structures and groups of companies this turns Greece into a workable jurisdiction: profit can be moved within a European group without unnecessary tax leakage. On top of that, Greece has a broad network of double taxation treaties with dozens of countries, which lowers withholding tax when operating outside the EU as well. These tools are especially important for anyone building an international business with a Greek element.

Business real estate taxes: ENFIA and transfer tax

If a business owns real estate in Greece - an office, a warehouse, retail premises or investment properties - property-related taxes are added on top of the corporate tax. This is a separate line of expenses that matters in the financial model.

Main payments:

• ENFIA is an annual real estate tax. Paid every year for owning properties. The amount depends on the area, location, cadastral value and characteristics of the property. For companies with a real estate portfolio this is a noticeable recurring burden.
• Real estate transfer tax on purchase. When buying a property on the secondary market, a transfer tax is paid at a rate of about 3,09% of the value. For new builds from a developer, VAT may in some cases apply instead.
• Corporate tax of 22% on real estate income. If the company rents out its properties, the rental income is included in overall profit and taxed at 22%.

It is also worth remembering short-term rentals: for properties bought under the Golden Visa, short-term letting (Airbnb-style) is prohibited under threat of revoking the residence permit. For an ordinary business, short-term rental is possible but is taxed and requires registration. If you are planning both a business and a relocation, it makes sense to look at the link with residency from the start - for example, through Greece Golden Visa.

How much it costs to run a company in Greece: a tax table

Let us gather all the key business taxes into a single table for a clear reference on the burden. This is the main checklist for planning - what a company in Greece pays and at what rate in 2026.

Besides taxes, a company also has operating costs: mandatory accounting, employee contributions to social security funds, and registration fees. Running a company in Greece is not just the 22% rate but a set of recurring obligations that need to be budgeted for from the first month.