Greece

Investing

FDI in figures

According to UN’s trade and development organization’s World Investment Report (which is based on Bank of Greece records, with all the limitations as mentioned above), FDI inflows into Greece in 2006 were 5.4 billion dollars (nine percent of GDP), significantly increased from 607 million dollars (1.1 percent of GDP) in 2005. Outflows for direct investment abroad were 4.2 billion dollars in 2006 (7 percent of GDP) and 1.45 billion dollars (2.7 percent of GDP) in 2005.
Although there is no official estimate of total foreign investment in Greece, the total stock of foreign investment is estimated at around $13 billion, or approximately five percent of GDP (in 2006).

Foreign Direct Investment	2004	2005	2006
FDI of inward flow (millions USD)	2,101	607	5,363
FDI inward stock (millions USD)	n.c.	n.c.	37,009.0
Performance Index*, world ranking	123	126	114
Potential Index**, world ranking	36	36	n.c.
Number of Greenfield investments	58	28	28
FDI inwards (in % of GFCF)	4.0	1.1	9.0
FDI stock (in % of GDP)	n.c.	n.c.	15.1

Source: UNCTAD, World Investment Report

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.

Why you should choose Greece

Strong points: - Greece is a member of the European Monetary Union (EMU) and one of the best performing economies in the Eurozone. Today, Greece has become the economic hub of Southeast Europe and offers a stable and healthy economic environment that is supportive to the needs of business and investors.
- According to latest data from the National Statistical Service (2006, 4th quarter), the number of people in the Greek labour force is 4,462.1. Although Greece has a relatively small labour force, there are certain quality factors which make the country competitive and more attractive in this field than most of its European counterparts: education, labor cost, productivity and working hours.
- Greece is Europe's strategic link to the sizeable, emerging markets of the Balkan, Black Sea, eastern European and eastern Mediterranean regions.
- Infrastructures: Greece is in the process of completing its vast programme of infrastructure projects with the use of the European Union's 3rd Community Support Framework. That means that every level of transport and communications is being upgraded on a profound scale.
Weak points: Greece's economy has been and continues to be subject to intense governmental regulation. According to Transparency International, the country is also
battling high levels of corruption that touch on many aspects of economic/commercial life. Local observers cite both factors as having contributed to Greece's relatively modest levels of foreign investment as a percentage of the economy, leading to its ranking of 24 out of 27 EU-member states. Growth has been financed by private sector borrowing and public sector absorption of EU structural adjustment funds.
Government measures to motivate or restrict FDI: -Legislative Decree 2687 of 1953 which, in conjunction with Article 112 of the Constitution, gives 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.

Administrative procedures relative to foreign investment

Freedom of establishment: Yes
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.
Competent organization for the declaration