Business loans are “up and running”
In the past two months banks have been launching sensational campaigns for granting loans. Having started from the category of small loans amounting to 5,000-25,000 euros, they offer large loans of more than 100 million euros which are serviced and they will make new disbursements to the categories of small and medium-sized practitioners, which will also be combined with the sales of new products (e.g. insurance). As stated by the Bank of Greece, the increase of grants was also accompanied by the increase of margins on new loans.
Reopening of trade fairs under a specific health protocol from 1/9
Following the announcements of the Ministry of Development and Investment, trade fairs will reopen from Wednesday 01/09/2021.
Fires: 930,000 acres turned to ashes – Greece coming third in the Mediterranean in terms of fire-ravaged land
According to the National Observatory’s meteo, this year Greece ranks third in the Mediterranean – after Italy and Turkey – as regards burned down areas and second – after Cyprus – as regards the increase (+336%) of burned down areas as compared to the average of the period 2002-2020. Italy occupies the first position with approximately 1.6 million acres (an increase of 314% as compared to the average of the period 2002-2020), followed by Turkey with approximately one million acres, an increase of 148%.
Tax incentives for investment in Greece
In accordance with the new bill, tax incentives are now provided, under specific requirements, to attract foreign employees, self-employed persons and Greeks who left the country during the financial crisis, with a view to their moving their tax residence and becoming professionally active in Greece.
These incentives are the following:
- Tax incentives for foreign investors (Non – Dom tax regime)
Taxpayers, natural persons who move their tax residence to Greece, are eligible, during a period of 15 years, for alternative taxation of income generated abroad, provided that they meet – cumulatively – specific requirements, including the investment of at least 500,000 euros in Greece. All tax obligations of natural persons concerning income generated abroad are considered to be fulfilled upon annual payment of a flat-rate tax of 100,000 euros. - Tax incentives for foreign employees and self-employed persons (Attracting employees and the self-employed from abroad)
Taxpayers who move their tax residence to Greece shall be subject to favourable taxation as regards their employment and individual business activity income which is generated in Greece. More specifically, an exemption from income tax and from the special solidarity levy is granted for 50% of the employment or individual business activity income which they receive in Greece within the tax year. - Tax incentives for foreign retirees (Attracting foreign retirees)
A separate annual tax of 7% is foreseen for a period of 10 years for retirees abroad who move their tax residence to Greece. In a nutshell, natural persons – retirees abroad are given the opportunity to move their tax residence to Greece and to be taxed on their global income in Greece at a rate of 7%. - Tax incentives for Family offices
Family Offices are legal entities which manage family assets. Under the Law, these Family Offices in Greece ought to employ staff of at least 5 persons within 12 months from their establishment and onwards, whereas they should annually incur operational expenditure of at least 1,000,000 euros in Greece. - Tax incentives for Angel Investors
Angel Investors (natural persons in Greece or abroad having a TIN in Greece) shall be entitled to a deduction from taxable income, equal to 50% of the capital contribution that they made to startups. Each private individual may invest up to 100,000 euros per startup and for up to three startups per year, namely up to 300,000 euros per year. The startup should be registered in the National Startup Registry – Elevate Greece.
Investment opportunities in Greece
The Greek Food and Agricultural Sector, the Greek Tourism Sector, the Greek Energy Sector and the Greek ICT and Logistics Sectors are the most active of the Greek economy, offering opportunities for investment.
Investment opportunities in the Greek Food and Agricultural Sector
Agricultural products constitute one of the most significant exporting sectors in Greece, with Greek fruit and vegetables being consumed in several international markets. The Greek agricultural sector maintains a positive trade gap for a wide range of agricultural products such as tomatoes, kiwi fruit and oranges, which are traditional products with stable prices and increasing demand. Moreover, the current crisis has had to a great extent a positive impact on primary agricultural production, since it has created opportunities for extroversion, effectiveness and a shift towards an improved, more competitive production. The role of private investors in this procedure can prove crucial, as they are able to provide Greek producers with capital, know-how and access to the market in order for them to maximize their added value and competitiveness in European markets.
Personal opinion
After a deep ten-year crisis Greece started, before the Covid period, to show signs of recovery. It is beyond doubt that, after this two-year “freeze” in the investment sector, Greece is already an attraction for prospective investors once again. According to their analyses, return on investment (regardless of sector) in Greece will be among the highest worldwide in years to come. If you are interested in investing in Greece, the specialized and experienced team of V-Kgroup is capable of achieving all your goals. “Board” the growth train along with the V-Kgroup. Do not hesitate to contact our team which always stands by your side to assist you with finding answers to your questions.