Taxes among the things that can pose challenges for Greek businesses

Some Greek Americans have a business presence in Greece. Now, in any country, steering a business towards success can have its difficulties. What kinds of challenges businesses are likely to face though can vary from country to country.

What sorts of challenges are coming before businesses operating in Greece?

Well, one are challenges related to the economic crisis the country has been dealing with. Economic shocks in a country can have major effects on the businesses in it and, as we discussed in a previous post, implications on the behavior of the country’s consumers.

Another thing that can prove challenging to businesses in Greece are taxes. Businesses can have a substantial amount of tax liability under Greek tax law. Some recent statistics underscore this. The statistics indicate that, in 2015, the amount of taxes paid by corporations in Greece was equal to around two-thirds of the overall profits brought in by such companies. Specifically, the total for taxes paid was at around 2 billion euros, while the profit total came in at around 2.9 billion euros.

Now, while businesses can face challenges in Greece, this doesn’t mean it is impossible for a business to be successful in Greece. A recent survey highlights this. The survey looked at 8,000 companies in Greece, the vast majority of which were small or medium-sized businesses. From this pool of companies, the survey identified around 2,000 of the companies as ones whose numbers indicated they were models for growth. It also identified another 1,200 businesses as having numbers indicating they have promise for further growth.

Now, when trying to move a business towards success in an environment that has its challenges, as Greece can be, it can be important for a business owner to not add to the challenges their company is facing by making costly mistakes. Among the mistakes that can prove costly for a business are legal mistakes and tax compliance mistakes. So, Greek Americans who have businesses in Greece may find it very helpful to have skilled guidance when it comes to legal and tax matters that come up for their company in Greece.

Source: ekathimerini.com, “Two-thirds of corporate profits go to taxes,” Evgenia Tzortzi, Dec. 2, 2016