Greece's Business Revolution: Navigating Legislative Changes for a Modern Economy

Greece’s business environment is currently undergoing profound changes driven by a comprehensive suite of legislative reforms designed to enhance digital compliance, improve tax efficiency, and increase operational flexibility for entities operating within its borders. These developments reflect the nation’s commitment to modernizing its regulatory landscape to align more closely with European Union standards and improve overall economic performance.

One of the most significant milestones in this transformation is the mandatory adoption of electronic invoicing (e-invoicing) for domestic business-to-business transactions, exports to non-EU countries, and public procurement. This initiative is legislated under the National Customs Code, which received approval on July 25, 2025, and was officially published on July 28, 2025. In alignment with the EU Council’s implementing decision dated February 25, 2025, Greece has been granted the authority to enforce e-invoicing beginning July 1, 2025. Notably, reports indicate that this initiative will be rolled out in phases, extending to February 2, 2026, through platforms such as myDATA, the timologio application, or certified providers, all of which must comply with the European standard EN 16931. These reforms not only aim to combat VAT fraud and reduce the VAT gap but also intend to streamline tax reporting processes and enhance transaction transparency amid Greece’s broader digital tax overhaul.

Enhancements in the corporate tax landscape are further encapsulated in Law 5162/2024, which establishes a cohesive regulatory framework for corporate transformations, addressing both domestic and cross-border mergers, acquisitions, and restructurings. This legislation provides income tax neutrality and specific exemptions that facilitate these transactions, while simultaneously introducing improved research and development incentives, a patent box regime, and increased support for angel investors. Businesses must now navigate updated valuation requirements and align with the reformed corporate law, thus marking a departure from previously fragmented regulations.

In addition to these corporate reforms, Law 5202/2025 has introduced Greece’s inaugural comprehensive foreign direct investment (FDI) screening mechanism, aligning with EU Regulation 2019/452. This new framework subjects certain investments to national security reviews, in conjunction with the existing merger control regime established under Law 3959/2011, the oversight of which is entrusted to the Hellenic Competition Commission. These measures not only enhance Greece’s regulatory oversight but also solidify its position as a secure destination for foreign investment.

On the labor front, Law 5239/2025 signifies a pivotal shift towards workforce modernization. This legislation permits the implementation of flexible four-day workweeks, which can extend to 13-hour workdays, while refining the utilization of digital work cards. Provisions have been included to accommodate unrecorded entries and recognize preparation time. Furthermore, this law seeks to simplify various administrative processes, thereby reducing bureaucratic burdens that have historically hindered efficiency.

These labor reforms coincide with the introduction of a new VAT Code, which codifies and harmonizes existing provisions without implementing extensive alterations. Concurrently, the abolishment of stamp duty, replaced by a digital transaction duty (DTD) applicable to corporate loans and business transfers, further demonstrates the government’s commitment to modernizing the tax framework. Additional incentives remain in place, such as the ongoing VAT suspension on real estate transactions until December 31, 2026, coupled with reductions in imputed expenses for assets, including residences and vehicles, effective from 2025.

For businesses operating within Greece, these legislative reforms present both compelling imperatives and unique opportunities. Enterprises are compelled to undertake immediate upgrades to systems to ensure compliance with the forthcoming e-invoicing regulations, as non-compliance may result in significant operational disruptions. Additionally, a strategic review of transformation and FDI plans is essential, given the increased scrutiny associated with the newly implemented foreign investment screening mechanisms. Moreover, adaptations to workforce structures may be necessary to promote operational efficiency while mitigating risks related to employment stability.

The ongoing elevation of Greece’s global business climate ranking underscores the nation’s dedication to digitalization, accelerated licensing processes, and minimized administrative burdens, collectively positioning the economy for sustained growth and resilience amidst evolving EU alignment efforts.

In this critically transformative period, the legal expertise of professionals such as Diomidis Papacharalampous proves invaluable. With extensive experience in navigating complex legal and regulatory frameworks, Papacharalampous is well-suited to assist enterprises as they traverse this dynamic landscape of legislative change. His proficiency not only provides a robust understanding of the implications these reforms carry for businesses but also equips organizations with the necessary tools to comply effectively with new regulations. As the legal and regulatory environment continues to evolve, the counsel of seasoned experts will prove essential in guiding businesses through potential challenges and harnessing new opportunities for growth and success.