Representative Office in Greece: A Guide for Foreign Companies from Dubai and Third Countries
Establishing a Representative Office in Greece is a strategic choice for foreign companies seeking presence in the country without full business establishment. For businesses based in third countries, such as Dubai (UAE), operating internationally in sectors like bunkering – trade and supply of marine fuels – Greece offers institutional security and operational flexibility.
🔹 What is a Representative Office?
It is a structure without legal personality in Greece, representing a foreign company, without engaging in commercial activity. The Representative Office in Greece mainly serves to:
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Communicate with clients
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Support transactions
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Manage documentation (paperwork)
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Conduct market research and provide administrative support
It does not invoice, make sales, or execute contracts on behalf of the parent company in Greece.
🔍 Can it Operate Without Establishing a Company?
Yes, under specific conditions. The Representative Office can operate without forming a legal entity (e.g., IKE or branch), provided that:
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It does not invoice or sell goods/services in Greece
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It has no financial authority vis-à-vis third parties
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All contracts and payments are handled at the parent company’s headquarters (e.g., Dubai)
📌 In practice, it obtains a Tax Identification Number (AFM) only for:
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Payroll of employees
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Leasing of office space
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Remittance of taxes/contributions
Registration with the G.E.MI. or adoption of Greek Articles of Association is not required.
🧾 Permanent Establishment: When Does It Arise?
According to Article 6 of Law 4172/2013 and the Greece–UAE Double Tax Treaty (Law 3557/2007):
| Activity | Permanent Establishment |
|---|---|
| Supportive functions only | ❌ NO |
| Execution of commercial contracts in Greece | ✅ YES |
| Negotiation and conclusion of agreements | ✅ YES |
| Capital management / invoicing | ✅ YES |
📌 Therefore, if the Greek presence is limited to a supportive role (client liaison, documents), no tax obligation arises in Greece for the foreign company’s profits.
💼 What Does the Office Pay in Greece?
If no permanent establishment exists, then:
| Obligation | Applicable |
|---|
| Corporate Income Tax | ❌ No |
| Payroll Tax (PAYE) | ✅ Yes |
| Social Insurance Contributions (EFKA, TEKA) | ✅ Yes |
| Rent tax (stamp duty or VAT) | ✅ Yes |
| Business Duty (End of Business Activity) | ❌ No (as long as there is no commercial activity) |
📌 A Representative Office is not considered a business (entrepreneur) if it:
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Does not issue invoices
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Does not maintain accounting records for commercial transactions
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Does not file Form E3
📎 Is a Branch or Subsidiary Required?
No, unless the following are necessary:
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Invoicing customers in Greece
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Signing contracts at a local level
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Participation in public or private tenders
Alternatives:
| Form | Description | Taxation |
|---|---|---|
| Representative Office | Support only – no sales | 0% |
| Foreign Branch | Local presence with invoicing | 22% corporate tax, VAT, myDATA |
| Subsidiary (IKE / S.A.) | Greek company with foreign shareholders | 22% + VAT, myDATA |
📌 If the aim is presence, payroll and support, then a Representative Office with AFM for payroll is ideal.
🧷 Responsibilities of the Local Representative
The person appointed as representative in the Greek registry has the following obligations:
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Signing and submitting declarations (PAYE, VAT if applicable, E3 if requested)
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Payroll administration and ERGANI filings
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Insurance declarations to EFKA and TEKA
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Collaboration with an accountant for Greek compliance
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Remittance of taxes and withholdings
In case of audit, the representative is treated as personally liable for any acts or omissions of the office.
✅ Recommended Form of Establishment
| Option | Taxation | Comments |
|---|---|---|
| Representative Office with AFM for payroll only | 0% income tax | ✅ Ideal for supportive presence |
| Branch | 22% in Greece | Requires operational autonomy |
| Subsidiary (IKE / S.A.) | 22% + full obligations | Only if Greek entity is needed |
🧾 Procedure to Establish a Representative Office
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Decision by foreign company management to establish in Greece
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Appointment of tax representative
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Lease of office space and declaration in myAADE
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Application for AFM at the Tax Office for Non-Residents
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Employer registration with EFKA
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Hiring personnel – ERGANI declarations
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Assignment of accounting and tax compliance
📌 Proposed Structure for Gulf Companies (e.g. Dubai)
➡️ “Representative Office with AFM for Payroll and Remittances Only”
✔ No permanent establishment
✔ No invoicing in Greece
✔ Fully compliant employee payroll
✔ Expenses paid by parent company via wire transfers
✔ Minimal tax burden
🔍 Conclusion
Setting up a Representative Office in Greece is ideal for companies from Dubai or other third countries seeking strategic presence in the EU without full corporate and tax obligations.
Successful implementation requires careful planning, legal documentation, and accounting support.
📞 The team at TKC Finance is here to assist you with:
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Guidance on establishing a Representative Office
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Tax structuring and local representation
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Payroll, ERGANI, and myDATA compliance
