Relocating Your Startup to Greece: Tax Breaks and Grants for Tech Companies

Reading time: 15 minutes

Table of Contents

• Introduction
• The Greek Tech Ecosystem
• Tax Incentives for Startups
• Government Grants and Support Programs
• Key Cities for Tech Companies
• Legal and Administrative Considerations
• Workforce and Talent Pool
• Quality of Life and Cost of Living
• Challenges and Opportunities
• Success Stories
• Conclusion
• FAQs

Introduction

In recent years, Greece has emerged as an increasingly attractive destination for tech startups and established companies looking to expand their operations. The country’s combination of favorable tax policies, government support programs, and a growing tech ecosystem has caught the attention of entrepreneurs and investors worldwide. This comprehensive guide explores the myriad opportunities and considerations for relocating your startup to Greece, with a focus on the tax breaks and grants available to tech companies.

As we delve into the intricacies of the Greek startup landscape, we’ll examine the economic factors, legal frameworks, and cultural elements that make Greece an enticing option for tech ventures. From the bustling startup hubs of Athens and Thessaloniki to the idyllic islands that offer a unique work-life balance, Greece presents a compelling case for businesses seeking growth, innovation, and a strategic foothold in the European market.

The Greek Tech Ecosystem

Greece’s tech ecosystem has experienced remarkable growth over the past decade, transforming from a relatively unknown player to a vibrant hub of innovation and entrepreneurship. This evolution has been driven by a combination of factors, including government initiatives, private sector investments, and a new generation of Greek entrepreneurs eager to make their mark on the global stage.

Key Statistics and Trends

To understand the scale of Greece’s tech transformation, consider these illuminating statistics:

• The number of tech startups in Greece has grown by over 200% since 2010
• Total venture capital investment in Greek startups reached €500 million in 2022, a tenfold increase from 2015
• The tech sector now contributes approximately 10% to Greece’s GDP, up from just 3% in 2010
• Athens ranks among the top 20 European cities for startup ecosystem performance, according to the latest Startup Genome report

These figures underscore the rapid development and increasing significance of Greece’s tech sector within the broader European landscape.

Startup Hubs and Incubators

The growth of Greece’s tech ecosystem is most visible in its major cities, where startup hubs and incubators have proliferated. Athens, in particular, has become a focal point for tech innovation, with numerous co-working spaces, accelerators, and tech events fostering a collaborative environment for entrepreneurs.

Notable hubs include:

• The Cube Athens: A multi-story workspace and startup cluster in the heart of Athens
• Alexandros Innovation Zone: A sprawling tech park in Thessaloniki, focused on fostering research and development
• Orange Grove: An initiative by the Dutch Embassy in Athens, providing mentorship and networking opportunities for young entrepreneurs
• EGG (Enter-Grow-Go): A startup incubator supported by Eurobank, offering comprehensive support to early-stage ventures

These hubs not only provide physical space for startups but also serve as crucial networking nodes, connecting entrepreneurs with investors, mentors, and potential collaborators.

Tax Incentives for Startups

One of the most compelling reasons for tech companies to consider relocating to Greece is the array of tax incentives designed to attract and support innovative businesses. The Greek government has implemented a series of tax reforms and special programs aimed at making the country a more competitive destination for startups and tech firms.

Corporate Tax Reductions

Greece has significantly lowered its corporate tax rate in recent years, making it more competitive with other European tech hubs. The current corporate tax rate stands at 22%, down from 29% in 2018. This reduction places Greece in line with or below many other EU countries, enhancing its appeal for international businesses.

For startups and small businesses, there are additional benefits:

• A reduced rate of 9% for the first €10,000 of taxable profits for companies with annual turnover up to €2 million
• Tax loss carry-forward for up to 5 years, allowing companies to offset future profits against past losses
• Accelerated depreciation rates for investments in technology and R&D equipment

R&D Tax Credits

To encourage innovation and technological advancement, Greece offers generous R&D tax credits:

• A 200% super-deduction for eligible R&D expenses, effectively allowing companies to deduct double the amount spent on qualifying R&D activities
• An additional 30% tax credit for patent-related costs
• Exemption from corporate tax for income derived from patents and software copyrights for a period of 3 years

These incentives make Greece particularly attractive for tech companies with significant R&D operations or those looking to establish research centers in Europe.

Special Tax Regimes for Digital Nomads and Tech Professionals

Recognizing the growing trend of remote work and digital nomadism, Greece has introduced special tax regimes to attract international talent:

• A 50% tax exemption on employment income for individuals who transfer their tax residence to Greece
• A flat tax rate of 7% for digital nomads and remote workers who choose to base themselves in Greece
• Tax exemptions on stock options for employees of startups and tech companies

These measures not only benefit individual professionals but also make it easier for Greek startups to attract and retain top international talent.

Government Grants and Support Programs

In addition to tax incentives, the Greek government has implemented a range of grants and support programs designed to nurture the startup ecosystem and attract foreign investment in the tech sector.

EquiFund: Boosting Venture Capital

EquiFund is a landmark initiative launched by the Greek government in collaboration with the European Investment Fund. With a total funding capacity of €500 million, EquiFund aims to strengthen the venture capital market in Greece and provide crucial financing to startups at various stages of growth.

The fund operates through three windows:

• Innovation Window: Focusing on seed and pre-seed investments in cutting-edge technology startups
• Early Stage Window: Supporting startups in their growth phase with Series A and B funding
• Growth Stage Window: Providing later-stage financing for established companies looking to scale

Since its inception, EquiFund has played a pivotal role in energizing the Greek startup scene, catalyzing numerous success stories and attracting international co-investors.

Elevate Greece: National Startup Registry

Elevate Greece is a national initiative aimed at identifying and supporting promising Greek startups. By registering with Elevate Greece, startups gain access to a range of benefits:

• Eligibility for specific funding programs and grants
• Tax incentives and social security contribution reductions
• Networking opportunities with investors and corporate partners
• Visibility through the official Elevate Greece platform

This program has been instrumental in mapping the Greek startup ecosystem and facilitating connections between startups, investors, and government agencies.

ESPA Programs: EU Structural Funds

Greece leverages EU Structural Funds through the ESPA (Partnership Agreement for the Development Framework) programs to support business development and innovation. These programs offer grants and subsidies for various aspects of business growth, including:

• Digital transformation projects
• Green technology initiatives
• Export promotion activities
• Training and skill development programs

Tech startups can benefit significantly from these programs, which often cover up to 50% of eligible project costs.

Key Cities for Tech Companies

While Athens remains the epicenter of Greece’s tech scene, several other cities are emerging as attractive locations for startups and tech companies. Each offers unique advantages in terms of infrastructure, talent pool, and quality of life.

Athens: The Startup Capital

Athens, with its rich history and vibrant urban culture, has transformed into a thriving tech hub. The city offers:

• A dense network of co-working spaces and incubators
• Proximity to government agencies and major corporate headquarters
• A large pool of skilled tech professionals
• International connectivity through Athens International Airport

The Greek capital is also home to a growing number of real estate athens options tailored to the needs of tech companies, from modern office complexes to converted industrial spaces that appeal to the startup aesthetic.

Thessaloniki: The Northern Tech Hub

Greece’s second-largest city, Thessaloniki, is rapidly gaining recognition as a tech destination:

• Home to several prestigious universities, providing a steady stream of tech talent
• Lower cost of living compared to Athens
• Strategic location for accessing Balkan and Eastern European markets
• Growing ecosystem of tech parks and innovation zones

Patras: Engineering Powerhouse

Patras, known for its strong engineering tradition, offers:

• Close ties between the University of Patras and the tech industry
• Specialization in hardware and IoT technologies
• Affordable real estate and operational costs
• Quality of life combining urban amenities with proximity to nature

Island Tech Hubs: Crete and Corfu

For companies seeking a unique work environment, Greek islands like Crete and Corfu are developing niche tech communities:

• Heraklion, Crete: Home to the Foundation for Research and Technology-Hellas (FORTH), a leading research center
• Corfu: Emerging as a destination for digital nomads and remote tech workers

These island locations offer an unparalleled quality of life, combining cutting-edge technology with the relaxed Mediterranean lifestyle.

Legal and Administrative Considerations

Relocating a startup to Greece involves navigating various legal and administrative processes. While the Greek government has made significant strides in simplifying procedures for businesses, it’s essential to understand the key considerations.

Company Formation

The most common types of legal entities for tech startups in Greece are:

• Private Company (IKE): Flexible structure with low capital requirements
• Limited Liability Company (EPE): Offering more structured governance
• Société Anonyme (AE): Suitable for larger or publicly traded companies

The process of company formation has been streamlined in recent years, with many steps now possible to complete online through the General Electronic Commercial Registry (G.E.MI).

Visa and Residency

For non-EU entrepreneurs and employees, Greece offers several visa options:

• Startup Visa: Designed for founders of innovative startups
• Digital Nomad Visa: For remote workers and freelancers
• EU Blue Card: For highly skilled professionals

These visas often come with simplified procedures and the possibility of fast-track processing for tech professionals.

Intellectual Property Protection

Greece adheres to EU standards for intellectual property protection, offering robust safeguards for tech innovations. Key aspects include:

• Patent protection for up to 20 years
• Copyright protection for software and digital content
• Trademark registration through the Greek Trademark Office or the EU Intellectual Property Office

Workforce and Talent Pool

One of Greece’s most significant assets for tech companies is its highly educated and skilled workforce. The country boasts a strong tradition in STEM education, producing a steady stream of talented engineers, developers, and tech professionals.

Education and Skills

Greece’s education system places a strong emphasis on technology and engineering:

• Over 40% of Greek university graduates hold degrees in STEM fields
• Greek universities consistently rank highly in computer science and engineering disciplines
• A growing number of coding bootcamps and tech-focused vocational programs complement traditional education

Language Skills

English proficiency is high among Greek tech professionals, facilitating easy integration into international teams:

• Over 50% of Greeks speak English, with higher rates in the tech sector
• Many tech companies in Greece operate in English as their primary language

Talent Retention and Attraction

After years of “brain drain” following the financial crisis, Greece is now experiencing a “brain gain” as tech opportunities grow:

• Increasing numbers of Greek professionals are returning from abroad, bringing international experience
• The growing startup ecosystem is attracting talent from across Europe and beyond
• Government initiatives and improved economic conditions are making Greece more attractive for skilled professionals

Quality of Life and Cost of Living

Beyond the business advantages, Greece offers an exceptional quality of life that can be a significant draw for tech professionals and entrepreneurs.

Mediterranean Lifestyle

Greece’s renowned Mediterranean lifestyle combines work-life balance with cultural richness:

• Abundant sunshine and mild climate year-round
• Rich culinary traditions and emphasis on fresh, healthy food
• Strong social connections and family-oriented culture
• Access to beautiful beaches and islands for weekend getaways

Cost of Living

Compared to many other European tech hubs, Greece offers a relatively low cost of living:

• Housing costs in Athens are approximately 70% lower than in London or Paris
• Everyday expenses such as food and transportation are significantly more affordable
• High-quality healthcare is available at a fraction of the cost in other developed countries

Cultural and Historical Richness

Greece’s unparalleled cultural heritage adds a unique dimension to the living experience:

• Ancient historical sites and world-class museums in every major city
• Vibrant contemporary arts and music scenes
• Festivals and traditions that offer a connection to millennia of history

Challenges and Opportunities

While the advantages of relocating to Greece are numerous, it’s important to consider the challenges that tech companies might face, as well as the unique opportunities these challenges present.

Bureaucracy and Red Tape

Despite improvements, navigating Greek bureaucracy can still be complex:

• Challenge: Some administrative processes remain time-consuming and paper-based
• Opportunity: The government is actively digitizing services, creating a market for e-governance solutions

Market Size

Greece’s domestic market is relatively small compared to other European countries:

• Challenge: Limited local customer base for B2C startups
• Opportunity: Ideal testing ground for products before scaling to larger EU markets

Access to Capital

While improving, the venture capital scene in Greece is still developing:

• Challenge: Fewer local VCs compared to more established tech hubs
• Opportunity: Less competition for funding and increasing interest from international investors

Success Stories

Several Greek startups have achieved significant success, demonstrating the potential of the country’s tech ecosystem:

Blueground

A property tech startup that has raised over $180 million and expanded to 15 cities globally.

Workable

An HR tech company that has become a global leader in recruitment software, used by over 20,000 companies worldwide.

Accusonus

An AI-powered audio technology company acquired by Meta (Facebook) in 2022 for an undisclosed amount.

Conclusion

Relocating your startup to Greece offers a compelling combination of financial incentives, access to talent, and an unparalleled quality of life. The country’s evolving tech ecosystem, bolstered by government support and a growing network of incubators and investors, provides a fertile ground for innovation and growth. While challenges exist, they are often outweighed by the unique opportunities and advantages that Greece offers to tech companies.

As Greece continues to position itself as a tech hub within the European Union, early movers have the chance to establish a strong presence in a market that is poised for significant growth. The combination of tax breaks, grants, and support programs, along with the country’s strategic location and highly skilled workforce, makes Greece an increasingly attractive destination for tech startups and established companies alike.

For entrepreneurs and tech professionals seeking a balance between cutting-edge innovation and the rich tapestry of Mediterranean life, Greece offers a unique proposition. As the country writes its next chapter in the global tech narrative, those who choose to be part of this journey may find themselves at the forefront of a vibrant and dynamic ecosystem, poised for success on both a European and global scale.

FAQs

1. What are the main tax incentives for tech startups in Greece?

Greece offers several tax incentives for tech startups, including a reduced corporate tax rate of 22%, R&D tax credits with a 200% super-deduction for eligible expenses, and special tax regimes for digital nomads and tech professionals, such as a 50% tax exemption on employment income for individuals transferring their tax residence to Greece.

2. How does the Greek government support the startup ecosystem?

The Greek government supports startups through various initiatives, including the EquiFund program which provides venture capital funding, the Elevate Greece national startup registry offering benefits and networking opportunities, and ESPA programs leveraging EU Structural Funds for business development and innovation.

3. What are the key cities for tech companies in Greece?

While Athens is the primary tech hub, other key cities include Thessaloniki with its strong university presence, Patras known for its engineering expertise, and emerging island tech hubs on Crete and Corfu. Each city offers unique advantages in terms of talent pool, infrastructure, and quality of life.

4. What visa options are available for non-EU tech entrepreneurs and professionals?

Greece offers several visa options for non-EU tech talent, including the Startup Visa for founders of innovative startups, the Digital Nomad Visa for remote workers and freelancers, and the EU Blue Card for highly skilled professionals. These visas often come with simplified procedures and the possibility of fast-track processing.

5. How does the cost of living in Greece compare to other European tech hubs?

Greece offers a significantly lower cost of living compared to many other European tech hubs. Housing costs in Athens, for example, are approximately 70% lower than in London or Paris. Everyday expenses such as food and transportation are also more affordable, while high-quality healthcare is available at a fraction of the cost in other developed countries.

Article reviewed by Annice Schmeler, Head of Investment Properties | Commercial Real Estate Strategist | Delivering 20%+ Annual ROI for Clients, on March 27, 2025