Greece

ESSENTIAL FACTS

LOCATION: 39 00 N, 22 00 E
The islands of Greece - about 2,000 in all - are located in Southeastern Europe between Albania and Turkey; they border the Aegean Sea, Ionian Sea and Mediterranean Sea.

POPULATION: 11,215,000

CURRENCY: euro (EUR)

LANGUAGE: Greek (official), spoken by 99 percent of the population.

CLIMATE: Greece has a temperate climate, with mild, wet winters and hot, dry summers

EDUCATION: 96 percent of Greeks age 15 and over can read and write.

PUBLIC HOLIDAYS: Independence Day, 25 March (1821)

HISTORY AND GOVERNMENT

HISTORY
Greece is home to one of the oldest recorded civilizations in the world. Democratic governments, philosophy, drama, science and much of what we know about architecture comes from the Greeks.

Greece fell under Roman rule in 146 BC and from 330 AD until 1453, was the centerpiece of the Byzantine Empire. The Ottoman Empire then gained control until 1821, when Greeks fought for their independence and in 1829 Greece was internationally recognized as an independent state.

In WWI they fought against the Turks; in WWII they refused to surrender to Italian fascists; they had a civil war between Royalists and Communists, which lasted from shortly after Liberation until 1974.

POLITICAL SYSTEM
Greece is a parliamentary republic. It is headed by a President and a Prime Minister, with a Cabinet appointed by the President with recommendations by the Prime Minister. Its unicameral Parliament is called the Vouli ton Ellinon.

JUDICIAL SYSTEM
The Greek legal system is based on Roman law. The judicial branch of the government has civil, criminal, and administrative courts. All justices in the Supreme Judicial Court and the Special Supreme Tribunal are appointed to their seats for life.

COMMERCE AND TRADE

COMMERCIAL ACTIVITY
Agriculture: Wheat, corn, barley, sugar beets, olives, tomatoes, wine, tobacco, potatoes; beef, dairy products
Industry: Tourism, food and tobacco processing, textiles, chemicals, metal products; mining, petroleum

TRADE PRACTICES
Exports: Food and beverages, manufactured goods, petroleum products, chemicals, textiles to Germany, Italy, Bulgaria, UK, Cyprus, Turkey, France, US and Spain
Imports: Machinery, transport equipment, fuels, chemicals from Germany, Italy, Russia, France, Netherlands and South Korea

BANKING, FINANCE AND INVESTMENT

FINANCIAL FACTS
Greece has experienced steady growth since joining the European Union in 1981; but even during their bitter civil war, their GDP averaged 7 percent annual growth. Its GDP is approximately USD$306 billion, with the great majority of its revenue coming from the service industry. Greece has significant interests invested in the Balkans, with majority shares in Turkish and Serbian banks. Many internationally known companies have research and development facilities in Greece, such as Coca-Cola and Siemens.

STOCK MARKET
Market value of publicly traded shares: $145 billion (2005)

MEMBERSHIPS
Australia Group, BIS, BSEC, CE, CERN, EAPC, EBRD, EIB, EMU, EU, FAO, IAEA, IBRD, ICAO, ICC, ICCt, ICRM, IDA, IEA, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, MIGA, MINURSO, NAM (guest), NATO, NEA, NSG, OAS (observer), OECD, OIF, OPCW, OSCE, PCA, Schengen Convention, SECI, UN, UN Security Council (temporary), UNCTAD, UNESCO, UNHCR, UNIDO, UNIFIL, UNMEE, UNMIS, UNOMIG, UNWTO, UPU, WCO, WEU, WFTU, WHO, WIPO, WMO, WTO, ZC

REAL ESTATE
Regardless of the income earned or not earned from real estate owned in Greece, the titleholder must file an annual tax return on the property. Real estate transfers are taxed. Properties owned by private foreign companies are taxed additionally.

IMMIGRATION

VISAS
EU nationals are free to enter, live in and look for work in Greece. US residents may enter without a visa in accordance with Schengen Treaty rules. All other foreign nationals require a visa to enter Greece.

EMPLOYMENT
All non-EU nationals need to apply for a work permit and a residence permit with the Greek Ministry of Labour at the Greek embassy or consulate in their home country before arriving in Greece.

Offshore corporations in Greece can apply on behalf of foreign employees providing the exact duration of the position is stipulated.

BUSINESS

BUSINESS ENTITIES
The types of companies allowed under Greek company law are as follows: Branches of foreign companies; Companies limited by shares (AE); General Partnerships (OE); Limited Liability Partnerships (EE); Limited Partnerships (EE); and Shipping Companies (NE). The Greek marine merchant industry is one of the largest in the world.

TAXATION

PERSONAL TAXATION
Residents of Greece pay from 5 to 40 percent tax on worldwide income earned. Inheritance, gifts and capital gains are taxed. Offshore company employees have to receive a Tax Registration Number from the Greek government in order to file taxes.

CORPORATE TAXATION
Withholding tax on payable income and service fees is 8 to 35 percent; dividends are not taxed. Royalties tax is 4 to 20 percent.

OTHER TAXATION/DUTIES
There is a VAT in Greece. There is also a car circulation tax.

DOUBLE TAXATION
Greece has entered into Double Tax Treaty agreements with Argentina, Australia, Austria, Belgium, Brazil, Canada, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Finland, France, Germany, Hungary, India, Israel, Italy, Netherlands, Norway, Poland, Romania, South Africa, South Korea, Sweden, Switzerland, Syria, United Kingdom, United States of America, Uzbekistan and Yugoslavia.