Sole proprietorship status, known in Greece as “Ατομική Επιχείρηση (Atomiki Epicheirisi)”, is available to both Greek citizens and residents. This provides an individual with the flexibility to conduct business and invoice clients without creating a separate legal entity. Below, we examine the availability, core requirements, and tax regime applicable to sole proprietorships in Greece in 2025.
Sole Proprietorship Availability in Greece
Sole proprietorship is a fully recognized and widely used business form in Greece. Greek law allows individuals to operate as a sole proprietor with relatively straightforward registration procedures, making it a practical option for freelancers, professionals, and small business owners who prefer not to establish a corporation.
Key Features of the Greek Sole Proprietorship
- Status Name (Greek/English): Ατομική Επιχείρηση (Atomiki Epicheirisi) / Sole Proprietorship
- Eligibility: Greek citizens and legal residents
- Separate Legal Entity: Not required — business activities are linked to the individual
- Common Use: Widely used across various professions for invoicing and small-scale operations
- Registration: Independent Authority for Public Revenue (AADE) and local Chamber of Commerce
Sole Proprietor Taxation in Greece (2025)
Sole proprietors in Greece are taxed as individuals. Income tax is applied to net business profits at progressive rates. The tax system is structured as follows for the 2025 tax year:
| Taxable Income Bracket (EUR) | Rate (%) |
|---|---|
| Up to €10,000 | 9% |
| €10,001–€20,000 | 22% |
| €20,001–€30,000 | 28% |
| €30,001–€40,000 | 36% |
| Above €40,000 | 44% |
(2025 tax brackets; EUR/USD conversion as of January 2025: €1 = $1.10. For example, €10,000 = $11,000)
Other Tax and Compliance Requirements
- VAT Registration: Sole proprietors must register for VAT if their annual turnover exceeds €10,000 (approx. $11,000).
- Social Security: Compulsory social security contributions (EFKA) apply to all sole proprietors, irrespective of income.
- Business Registration: Formal registration is mandatory with both the Independent Authority for Public Revenue (AADE) and the local Chamber of Commerce before commencing activities.
Summary Table: Sole Proprietorship Conditions in Greece (2025)
| Requirement/Condition | Description / Value |
|---|---|
| Status Name | Ατομική Επιχείρηση (Atomiki Epicheirisi) / Sole Proprietorship |
| Available to Foreigners? | Yes, if legal residents |
| Separate Legal Entity Required? | No |
| Progressive Income Tax Rates | 9%–44% (see tax brackets above) |
| VAT Registration Threshold | €10,000 ($11,000) |
| Mandatory Social Security Contributions | Yes (EFKA) |
| Registration Authorities | AADE; Local Chamber of Commerce |
Registration Process
The registration procedure is handled both through the Independent Authority for Public Revenue (AADE) and at the local Chamber of Commerce. The process includes supplying identification, tax, and residence documentation, along with business details. Upon approval, a Tax Identification Number (TIN) is issued and, if applicable, a VAT number. Official sources and further procedural details are available via the primary websites:
Pro Tips for Operating a Sole Proprietorship in Greece
- Carefully track annual turnover—exceeding the €10,000 VAT threshold triggers registration and new reporting obligations.
- Budget for social security contributions (EFKA), which are mandatory regardless of profit levels.
- Set aside funds for tax payments; Greek tax rates are progressive and can increase sharply as income rises.
- Register promptly with both AADE and the local Chamber of Commerce to avoid administrative delays or penalties.
- Maintain accurate records of all income and expenses: audits for sole proprietors are not uncommon in Greece.
For international professionals and business owners, Greece’s sole proprietorship status is accessible and widely used, with tax and compliance obligations largely in line with EU norms. Key takeaways include the progressive tax rate schedule, the low VAT registration threshold, and obligatory social security contributions. Prospective applicants should weigh these compliance requirements and tax costs against the simplicity and accessibility of the sole proprietorship framework in Greece.