Foreign direct investment (FDI) in Greece

FDI in Figures

According to UNCTAD's World Investment Report 2024, FDI flows to Greece stood at USD 5.4 billion in 2023, after reaching a record level of USD 8.4 billion one year earlier. At the end of the same period, the stock of inward FDI reaced USD 61.5 billion. Data from the Bank of Greece shows that the countries holding more FDI stocks (by immediate investor) are Luxembourg (17.5%), Cyprus (11%), the Netherlands (10%) and Switzerland (6.7%). Europe as a whole held 83.6% of stocks. In terms of sectors, the ones attracting more foreign investments were real estate (18.4%), manufacturing (14.7%), wholesale and retail trade (11.4%), information and communication (9.6%), and transport and storage (8.9%). More in detail, the manufacturing sectors with the most significant investment were “food, beverages, tobacco” and “pharmaceuticals”. According to the EY Attractiveness Survey Greece 2024, while European investments fell by 4% in 2023, Greece secured a record 50 FDI projects, ranking 19th among 45 countries. FDI projects from the past two and three years represent 25% and 33% of all investments since 2000, with 49% made after Greece's 2019 bailout exit. Investments increasingly target knowledge-intensive and high value-added sectors. Key areas include software and IT services (24%), professional and business services (16%), and transportation and logistics (16%). As per the latest data by the OECD, FDI inflows to Greece totalled USD 2.3 billion in the first half of 2024, marking a decrease of 16.3% from the level recorded in the same period one year earlier.

Foreign private entities can establish various types of businesses and handle most bureaucratic procedures digitally. Greece imposes no discriminatory laws against foreign investors. The government has introduced reforms to boost growth in key sectors like tourism, agriculture, services, manufacturing, and construction. Initiatives include a fast-track system for strategic investments and the Enterprise Greece Investor Ombudsman to resolve issues and simplify licensing. Although recent reforms have boosted competitiveness and digitised government services, bureaucratic complexity and a slow judicial system remain obstacles for both foreign and domestic investors. Foreign and domestic entities have the legal right to establish and own businesses in Greece, though national security restrictions apply to foreign ownership in sensitive sectors like airport operations, electricity, and media. The government has implemented EU-required reforms in the energy sector, allowing more foreign investment. There are also restrictions on land purchases in border areas and certain islands. Foreign investors can buy or sell shares on the Athens Stock Exchange on equal terms with locals. Greek laws protect property rights for both foreign and Greek nationals, with a legal system that supports property acquisition and transfer. The country does not have an investment screening mechanism; however, the government is currently working on legislation for the development of an FDI screening procedure in line with EU regulation 2019/452. Greece ranks 59th among the 180 economies on the Corruption Perception Index and 113th out of 184 countries on the latest Index of Economic Freedom.

What to consider if you invest in Greece

Strong Points

Greece’s main assets are:

• Member of the European Union and European Monetary Union
• Economic Hub of South-Eastern Europe: geographical location, which makes it the strategic link with the markets of the Balkans, the Black Sea, Eastern Europe and Eastern Mediterranean regions
• One of the strongest shipping sectors in the world.
• Strong tourism sector
• In-depth economic and work market reforms after the economic crisis
• Greatly improved financial management
• Prospects for tourism in the long-term remain strong. As the industry continues to grow, it will create opportunities for investments related to upgrading or updating related infrastructure.

Weak Points

Greece suffers from many handicaps : 

• The economic crisis has greatly diminished economic prospects. Consumer confidence has decreased, liquidity issues have made it difficult to access credit and consumption has dramatically scaled back.
• High public debt
• Rigid business environment
• Weak industrial and banking sectors
• Insufficient investment in research and development
• Bureaucratic inefficiencies, expensive regulations and uncertainty about the future regulatory regime
• The country also faces a high level of corruption that affects many aspects of the economic and commercial life (according to Transparency International).
• Persistence of social tensions
• Many industries tend to be oligopolistic, creating difficulties for those wishing to enter the sector.

Government Measures to Motivate or Restrict FDI

The Legislative Decree number 2687/53 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.
Law 4146/2013, entitled the 'Creation of a Business-Friendly Environment for Strategic and Private Investments' is the primary investment incentive law currently in force. It aims to improve the institutional framework for private investments, raise liquidity, accelerate investment procedures and increase transparency. The Greek government also established Enterprise Greece, merging the previous Invest in Greece investment promotion agency with the Hellenic Foreign Trade Board to create a sole point of contact for investors. The business start-up procedures can be carried out online via the Greek General Register of Commerce.
 
Since the financial crisis, Greece has experienced a significantly degraded business climate. Despite the many structural economic reforms undertaken since then, foreign investors continue to fear the weight of Greek bureaucracy and corruption. The government provides a number of incentives to try to reverse the investment trend (although the country is highly sought-after by Chinese investments) including :

• Law 4487/2017 establishes the investment incentives framework for the production of audiovisual works in Greece, by providing a State grant (cash rebate) for an amount of up to 40%.
• The Legislation for Integrated Tourism Resorts and Holiday Housing acts in combination with the Law for Residence permits (4251/2019), which offers to non-EU citizens the right to get a residence permit, if they own at least €250,000 real estate asset, or a sharing contract under Law 1652/1986, or a 10-year lease of hotel accommodations or furnished tourist accommodation (houses) in tourist accommodation complexes according to Article 8, par. 2 of Law 4002/2011. To know more about the Golden Visa Program, click here.

Bilateral investment conventions signed by Greece

To see the list of investment treaties signed by Greece, consult UNCTAD's International Investment Agreements Navigator.