If you’re an entrepreneur or digital nomad considering Greece as your next base, you’re likely weighing the country’s regulatory landscape as much as its beaches and culture. Navigating the legal framework around corporate asset management is crucial—especially if you’re determined to optimize your tax exposure and minimize unnecessary risks in 2025. Let’s break down what you need to know about the misuse of corporate assets in Greece, using the latest data and practical insights.
Understanding Misuse of Corporate Assets in Greece
Greece takes the integrity of corporate asset management seriously. The misuse of corporate assets—sometimes called misappropriation or embezzlement—can trigger criminal liability, not just administrative penalties. This is especially relevant for founders, directors, and shareholders who want to avoid entanglements that could jeopardize their freedom or financial security.
Key Legal Reference: Article 390 of the Greek Penal Code
The cornerstone of Greece’s approach is Article 390 of the Greek Penal Code (Ποινικός Κώδικας). This law specifically addresses embezzlement (απιστία) and applies to company directors, including sole directors and shareholders. Notably, the law covers misappropriation of company assets even if there is no third-party prejudice—meaning you can be prosecuted even if no one outside the company is directly harmed.
| Aspect | Details (2025) |
|---|---|
| Criminal Liability | Yes |
| Relevant Law | Article 390, Greek Penal Code |
| Who is Liable? | Company directors, including sole directors/shareholders |
| Scope | Misappropriation of company assets, even without third-party loss |
How Article 390 Impacts Entrepreneurs and Digital Nomads
Unlike some jurisdictions where only clear-cut fraud or theft is prosecuted, Greece’s framework is broader. Even internal transfers or personal use of company assets—if not properly documented and justified—can fall under the scope of Article 390. This is a critical point for those who value flexibility in managing their business finances.
Mini Case Study: Sole Director Liability
Imagine you’re the sole director and shareholder of a Greek company. You decide to use company funds for a personal investment, planning to reimburse the company later. Under Article 390, this action could be prosecuted as embezzlement, even if no external party is harmed and the company is not technically defrauded. The law’s reach is designed to protect the company as a separate legal entity, not just its external stakeholders.
Pro Tips: Staying Compliant and Optimizing Your Position in 2025
- Document Every Transaction
Pro Tip: Always keep a clear paper trail for any movement of company assets. Internal loans, director’s advances, or asset transfers should be formally approved and recorded in board minutes. - Separate Personal and Corporate Finances
Pro Tip: Never use company assets for personal purposes without a formal process. If you must, ensure it’s structured as a loan or dividend, with all taxes and legal requirements met. - Review Your Governance Structure
Pro Tip: Even if you’re the sole shareholder, treat the company as a distinct entity. Regularly review your compliance with Article 390 and consult with a local legal expert if in doubt. - Stay Updated on Regulatory Changes
Pro Tip: Laws evolve. As of 2025, Article 390 remains the key reference, but always monitor for updates that could affect your liability or compliance obligations.
Summary: Key Takeaways for 2025
- Greece enforces strict criminal liability for misuse of corporate assets under Article 390 of the Penal Code.
- Directors and shareholders—even sole ones—can be prosecuted for misappropriation, regardless of third-party harm.
- Meticulous documentation and separation of personal and corporate finances are essential for compliance and risk mitigation.
For more details on Greek corporate law, consult the official Greek Penal Code (in Greek). Staying informed and proactive is your best defense against unnecessary legal exposure while optimizing your entrepreneurial freedom in Greece.