Foreign Direct Investment in Greece
FDI in Figures
The available data on FDIs in Greece should be taken with caution because they do not reflect the real situation. Compared to other countries of the European Union, the level of FDIs is low, and given the difficulties the country is currently facing, this trend should continue.
The high level of corruption and lack of transparency are the two main obstacles to the growth of FDIs.
Country Comparison For the Protection of Investors
|Index of Transaction Transparency*||1.0||6.0||7.0||5.0|
|Index of Manager’s Responsibility**||4.0||5.2||9.0||5.0|
|Index of Shareholders’ Power***||5.0||6.8||9.0||5.0|
|Index of Investor Protection****||3.3||6.0||8.3||5.0|
Source: Doing Business
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
|Foreign Direct Investment||2007||2008||2009|
|FDI Inward Flow (million USD)||2,111||4,499||3,355|
|FDI Stock (million USD)||53,221||38,119||44,927|
|Performance Index*, Ranking on 141 Economies||132||118||115|
|Potential Index**, Ranking on 141 Economies||43||46||-|
|Number of Greenfield Investments***||38||48||38|
|FDI Inwards (in % of GFCF****)||3.2||6.6||15.0|
|FDI Stock (in % of GDP)||17.2||10.9||13.6|
Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.
Why You Should Choose to Invest in Greece
- Strong Points
- Greece's main strong points are:
- Its membership to the European Monetary Union (EMU). Today, Greece has become the economic hub of Southeast Europe;
- Its competitiveness within the active population in terms of education, manpower costs and work productivity;
- Its geographical location, which makes it a strategic link to the emerging markets of the Balkans, Black Sea, Eastern Europe and Eastern Mediterranean regions; and
- Its infrastructures, which are improving significantly, mainly due to the 3rd European Union community support framework.
- Weak Points
- The Greek economy has always been and continues to be subject, to intense governmental regulation. According to Transparency International the country also has to tackle high levels of corruption that affect many aspects of the economic and commercial life. In addition, growth has been financed by private sector loans and the public sector's absorption of EU structural adjustment funds, which has caused a large public deficit.
- Government Measures to Motivate or Restrict FDI
- The Legislative Decree number 2687 of 1953 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.
- Bilateral Investment Conventions Signed By Greece
- To see the list of countries, click here.
Procedures Relative to Foreign Investment
- Freedom of Establishment
- Acquisition of Holdings
- A majority holding interest in the capital of a Greek company by a foreign investor is legal, except in some sensitive sectors.
- Investment Aid Agency
Investment in Greece
- Tenders, Projects and Public Procurement
Mopadis, Public Procurement Monitoring Unit (PPMU)
Tenders Info, Tenders in Greece
Ted - Tenders Electronic daily, Business opportunities in EU 27
DgMarket, Tenders Worldwide
- Other Useful Resources
Invest in Greece
Invest in Greece
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