Quick answer — Greek IKE at a glance. A Greek IKE (private capital company) is registered through the General Commercial Registry (GEMI), often within a few days, with share capital from €1. Profits are taxed at 22%, and dividends at 5%. New residents can claim a 50% income tax exemption for seven years under Article 5C on employment or business income — but this relief applies to personal income, not to company profits.
Executive Summary & Context
Greece has quietly become one of Europe's most interesting destinations for location-independent professionals. It offers a digital nomad visa, a 50% income tax exemption for new residents moving their work to Greece, a low 5% tax on dividends and a low-capital company form, the IKE.
The interaction between these tools is what matters. Article 5C halves the tax on your personal employment or business income. An IKE pays 22% on its own profits, and you pay 5% on dividends. Depending on your income, being self-employed under 5C, taking a salary from your IKE under 5C, or retaining profits in the IKE can each be the best answer.
Who a Greek IKE suits
- Founders relocating to Greece who want limited liability, local clients or the ability to retain profits.
- Agencies and consultancies with high profits, where 22% corporate tax plus 5% dividend tax beats top personal rates.
- Founders building a team in Greece, including through Article 5C for themselves and key staff.
Who it does not suit
An IKE may be unnecessary for freelancers whose income is best taxed personally under Article 5C. It is not designed for locally employed expats or cross-border commuters.
Comparing Southern European options? See our guide to digital nomad visa company setup.
Legal Entities & Comparison Matrix
| Option | Liability | Minimum capital | Tax | Typical use |
|---|
| Self-employed (eleftheros epaggelmatias) | Unlimited, personal | None | Progressive income tax, with Article 5C relief if eligible; minimum deemed income rules | Freelancers |
| IKE (private capital company) | Limited | From €1 | 22% corporate tax; 5% on dividends | Founders and small companies |
| EPE (limited liability company) | Limited | Low | Same as IKE | Older or traditional companies |
| AE (société anonyme) | Limited | €25,000 | Same corporate regime | Larger companies |
Article 5C in brief
| Feature | Rule |
|---|
| Relief | 50% exemption of employment or business income from income tax |
| Duration | Seven years |
| Who qualifies | People who were not Greek tax residents for at least five of the previous six years and move their tax residence to Greece to work there |
| What it covers | Personal employment and self-employment income — not company profits |
If you are comparing destinations, look at the Unipessoal Lda in Portugal and the Croatian d.o.o. setup.
Substance, Residence & Compliance Governance
Tax residency and the digital nomad visa
You become Greek tax resident after more than 183 days in Greece in a year or if your centre of vital interests is there. Digital nomad visa holders who work for foreign employers or clients may stay non-resident for tax purposes if they spend less time in Greece; those who become resident should consider Article 5C.
Self-employed minimum income rules
Since 2024, Greece applies a minimum deemed income to self-employed people, based on factors such as the minimum wage and years in business. This can make self-employment more expensive for low declared incomes and is a reason some founders choose an IKE.
Paying yourself from an IKE
- Salary from your IKE is employment income and can qualify for Article 5C if you meet the conditions.
- Dividends are taxed at 5%.
- Retained profits are taxed only at 22% within the company.
Compliance and AML/KYC
- Beneficial owners registered in the Greek beneficial ownership register.
- Annual financial statements filed with GEMI, annual corporate tax return and VAT returns.
- Social security registration with EFKA for the administrator, depending on their role and remuneration.
- Electronic invoicing and bookkeeping (myDATA) obligations.
Setup Costs & Economic Model
| Cost item | One-off or recurring | Indicative amount (2026) | Notes |
|---|
| GEMI registration and one-stop-shop fees | One-off | Low | Online with standard articles |
| Lawyer or accountant for formation | One-off | €500–1,500 | Common for non-Greek founders |
| Tax number (AFM) and representation | One-off | Varies | Needed for founders and administrators |
| Accountant | Monthly | €100–300 | Bookkeeping, myDATA, VAT |
| Annual GEMI fee | Yearly | Low | |
| Social security (EFKA) | Monthly | Depends on role | For the administrator where applicable |
Amounts are indicative.
The economic model: €100,000 of profit, founder new to Greece
| Scenario | Tax picture |
|---|
| Self-employed with Article 5C | Progressive income tax on 50% of the income, plus social security |
| IKE, all profits retained | 22% corporate tax |
| IKE, all profits distributed | 22% corporate tax, then 5% on dividends (about 26% combined) |
| IKE paying you a salary under Article 5C | Salary taxed at half; remaining profits taxed in the IKE |
For many new residents, a combination — a salary under 5C plus retained or distributed IKE profits — gives the best result.
Step-by-Step Formation & Business Banking
- Obtain a Greek tax number (AFM) for each founder and administrator.
- Check Article 5C eligibility and the application deadline after moving your tax residence.
- Prepare the articles of association (standard articles allow faster online registration).
- Register the IKE with GEMI through the one-stop shop, online or via a notary or lawyer.
- Register with the tax authority for VAT and with EFKA for social security.
- Set up bookkeeping and myDATA e-invoicing.
- Open a business bank account and pay in the share capital.
- Apply for Article 5C for your personal income where eligible.
Opening a business bank account
Greek banks open accounts for IKEs, but expect KYC on all shareholders and the administrator, the GEMI registration and AFM, and often an in-person visit.
The Greece Business Bank Comparison Guide compares the main options for new IKEs — get it when you start your Greek setup with Heavnn.
Frequently Asked Questions (FAQ)
What is a Greek IKE?
It is a private capital company, the most flexible limited company form in Greece, which can be formed with share capital from €1 and registered through GEMI.
What is the corporate tax rate in Greece?
Greek companies pay 22% corporate income tax. Dividends are taxed at 5%.
Does the 50% tax relief apply to my company?
No. Article 5C applies to individuals' employment and business income. Company profits are taxed at the normal corporate rate, although a salary you receive from your IKE can qualify.
Who qualifies for Greece's Article 5C?
People who were not Greek tax residents for at least five of the previous six years and move their tax residence to Greece to work there as employees or self-employed.
Is it better to be self-employed or open an IKE in Greece?
It depends on your income and 5C eligibility. Self-employment under 5C is often efficient; an IKE helps when profits are high, retained, or when the minimum deemed income rules make self-employment expensive.
Launch Your Greek Company with Heavnn
Greece's 50% relief, 22% corporate tax and 5% dividend tax can be combined well — or badly. Heavnn models the mix for you.
- Get the Greece Business Bank Comparison Guide to compare banks for new IKEs.
- Then check whether your income qualifies for the 50% relief before you set up.
Start your Greek setup with Heavnn →
This guide is general information, not tax or legal advice. Rates and fees are indicative as of October 2026.
