Greece

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Investing in Greece

FDI in figures | Why you should choose to invest in Greece | Procedures relative to foreign investment | Finding assistance for further information

FDI in figures

According to UN Trade and Development Organization’s World Investment Report, FDI inflow into Greece in 2006 was dollars 5.4 billion, i.e. 9% of the GNP.
Despite the international financial crisis, FDI in Greece showed a substantial increase in 2008. An important part (around 60%) of the total FDI went towards the formation of new companies, mergers and acquisitions and the rest was for real estate loans and acquisitions. Additionally, almost 10% of FDI came from re-invested profits, which is a sign of investor confidence and their long term intention to stay in Greece.

Foreign Direct Investment	2005	2006	2007
FDI inward flow (millions USD)	606	5,364	1,918
FDI stock (millions USD)	29,189	41,288	52,838
Performance Index*, ranking on 141 economies	126	114	126
Potential Index**, ranking on 141 economies	36	37	-
Number of Greenfield investments***	28	28	37
FDI inwards (in % of GFCF****)	1.0	7.8	2.4
FDI stock (in % of GDP)	11.8	15.4	16.9

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest in Greece

Strong points: Greece's main strong points are:
- Its membership to the European Monetary Union (EMU). Today, Greece has become the economic hub of Southeast Europe;
- Its active population's competitiveness in terms of education, manpower costs and work productivity;
- Its geographical location, which makes it a strategic link to the emerging markets of the Balkans, Black Sea, Eastern Europe and Eastern Mediterranean regions; and
- Its infrastructures, which are improving significantly, mainly due to the 3rd European Union community support framework.
Weak points: The Greek economy has always been and continues to be subject, to intense governmental regulation. According to Transparency International, the country also has to tackle high levels of corruption that affect many aspects of the economic and commercial life. In addition, growth was been financed by private sector loans and the public sector's absorption of EU structural adjustment funds, which has caused a large public deficit.
Government measures to motivate or restrict FDI: The Legislative Decree number 2687 of 1953 as well as Article 112 of the Constitution, give approved foreign "productive investments" property rights, preferential tax treatment and work permits for foreign managerial and technical staff.
Bilateral investment conventions signed by Greece: To see the list of countries, click here.

Procedures relative to foreign investment

Freedom of establishment: Yes
Acquisition of holdings: A majority holding interest in the capital of a Greek company by a foreign investor is legal, except in some sensitive sectors.
Competent organization for the declaration

Finding assistance for further information

Investment aid agency: Investment in Greece
Other useful resources: Invest in Greece
Invest in Greece

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