The establishment of company branches of foreign companies in Greece has been institutionalised for five decades through the well-known “law offices 89”. The purpose of the Greek legislator in the year 1967, when the law was issued, was to attract foreign investment by providing tax incentives for the establishment of foreign commercial, industrial and shipping companies in Greece with the vision of making the country an international attraction.
The relevant legislation provides the possibility for companies established abroad, to establish subsidiaries or company branches, offices and agencies in Greece, with the sole purpose of providing specific services to companies affiliated with them. At the same time, these branches enjoy significant tax advantages, in particular as regards the determination of their taxable income.
In this context, law 89/1967 is a useful tool that allows multinational groups to establish Shared Services Centers in Greece, the so-called “Shared Services Centers”.