- Overview: Greece
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Convert Freelancers to Full-time Employees
- Expand without an Entity Set Up
Global PEO and Payroll in Greece
Getting your business up and running in Greece can be challenging, especially if you do not speak the native language. Establishing your business entity in Greece is an option to be considered as you expand abroad. But before you invest valuable resources in setting up business in Greece, you should be fully aware of the risks involved.
Acumen’s Global PEO and Payroll solution was designed especially for companies like yours to smooth the way for quick, easy, and risk-free business operations in Greece without establishing a legal business entity.
What Is a Global PEO?
A PEO (Professional Employment Organisation) is an international employment service provider that allows you to outsource all the legal hiring complexities and ongoing payroll for your employees in foreign countries. With a PEO by your side, your company can focus on finding and hiring the best talent without worrying about administrative hassles.
A professional employer organization (PEO) allows businesses to outsource tasks and processes related to employee management without establishing a locally registered entity in the target country.
A professional employee organization (PEO) provides hiring, payroll, and benefits management services to businesses of all sizes. When you work with a PEO, it becomes your Employer of Record for tax purposes, which allows you to save time and money on HR and payroll functions.
What Services Does Global PEO Provide?
If you’re looking for a streamlined option for hiring employees, testing markets, and responding to growing business needs in Greece, then PEO/ EOR services could be right for you. With Acumen International Global PEO Services, we take on the burden of compliance so that you can focus on your business. We employ your selected candidates legally, following labor laws, so that you can get the talent you need quickly and without sacrificing quality.
A PEO can offer strategic guidance and various services tailored to your company’s needs. These services can help your business grow safely and effectively. Here are some of the things a PEO can do for you.
- Human resources administration, including payroll, taxes, and benefits administration; employee training and development; recruitment; compliance training; background or education checks; time-keeping services;
- Regulatory compliance assistance, including payroll tax law and reporting requirements;
- IP protection and offboarding;
- Hiring and HR compliance services, helping you navigate through local regulations and avoid prohibited HR practices, including discriminatory job listings, Illegal criminal background checks, misclassified workforce, inaccurate payroll, and tax payments;
- Human resource support;
- End-to-end talent management, including recruiting, onboarding, engagement, performance management, and termination (upon employer approval);
- A PEO works with legal counsel to ensure that the company is updated on all employment law matters. This includes discrimination, wrongful termination, sexual harassment, whistleblower protection, non-compete agreements, severance agreements, and any other changes in the law.
Benefits of Using PEO (Professional Employer Organisation)
There are many benefits to partnering with a PEO for businesses expanding to new locations. Perhaps the most significant benefit is that PEOs can provide access to cutting-edge global employment solutions that are usually beyond the reach of many organizations. This can give your organization a significant competitive advantage.
Businesses can benefit from the value propositions that PEOs bring to the table in five different ways
- Improving clients’ ability to attract and retain talent.
- Enabling clients to focus on their core businesses while PEOs handle HR matters.
- Expert HR knowledge and resources to improve their overall business performance.
- Reducing HR-related overhead costs.
- Eliminating the need to deal with legal compliance and HR issues.
- Legal protection
- Reduced payroll administration costs.
The primary benefit of partnering with a PEO, Professional Employer Organization, is a co-employment relationship that gives you the flexibility to focus your attention on the direction and growth of your business.
What Is Co-employment Model?
In a “co-employment” arrangement, with the help of a Professional Employment Organisation (PEO), the PEO takes on many traditional employment responsibilities. The employer retains complete control of their employees’ day-to-day management and business.
Large companies are increasingly choosing to partner with a PEO, a global employment service provider, to help them balance their workload and simplify the international hiring processes. The role of the PEO is to manage all administrative HR considerations related to your global employment journey, including onboarding and offboarding, payroll, benefits, and tax administration in Hungary. Plus, you’ll have better control over costs and can avoid non-compliance risks. A PEO has deeper expertise, is familiar with current immigration, tax, and labor laws, can identify employment issues before they escalate, and can provide expert guidance and recommendations.
Achieve 100% HR Compliance with a Global PEO in Greece
It has never been more important for businesses to have a comprehensive compliance strategy. The volatile employment environment means that there are always new laws and regulations to worry about, and responding to them can be burdensome and overwhelming. To protect your company from costly penalties and reputational damage, you need to have a strategy in place that is aligned with regulatory requirements. Global workforce management should be tailored specifically to the needs of your business. Misalignment of benefits, hiring practices, and other HR practices can lead to costly penalties, litigation, and loss of reputation. A tailored approach reduces risks and enables you to stay ahead of the curve in an ever-changing employment market.
Acumen International can help you streamline the hiring process in Hungary with our customized all-in-one Express Global Employment solution. This unique solution can save you time and up to 70% on expansion costs, making it easy for you to extend your business into new markets without hassle. Our all-in-one solution includes comprehensive payroll, benefits, tax administration, and compliance support, making it a breeze to get started in new countries – no matter how complex the process may seem.
Acumen International – Your Professional Employer Organization in Greece
Navigating the Greek legal system and adhering to regulations governing employment and taxation can be challenging for businesses, especially if you are not a native Greek speaker. Partnering with Acumen International as a global Professional Employer organization (PEO) provides you with the local knowledge and support you need to conduct business in Greece without concern for legal and compliance risks.
Whether you represent international client companies or you are taking your own business operations abroad, Acumen International’s Global PEO and payroll service allows you to hire and payroll local and expat employees in Greece. With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions.
International Global Payroll and Taxation in Greece
Global Payroll Calculator: Accurate Global Employment Cost Estimation
The Global Payroll Calculator is built by Acumen International to help businesses understand the compliance requirements for conducting business in a new country. Acumen’s research team tracks developments in 190 countries around the globe. It provides up-to-date data on local regulations related to tax, payroll regulations, benefits, hiring practices, compliance requirements, and other labor-related factors that impact an employer’s bottom line. This valuable information makes the Global Payroll Calculator an invaluable tool for businesses looking to expand internationally.
Global Payroll Calculator helps companies reduce labor costs by providing up-to-date information on hiring, compensation, and tax requirements. It is also an ideal tool for quickly locating employees in any country.
Personal Income Tax (PIT)
In principle, subject to relevant tax treaty provisions, income tax is payable by all individuals earning income in Greece, regardless of citizenship or place of permanent residence. Permanent residents are taxed on their worldwide income in Greece. As of 1 January 2013, income tax depends on the source of the income (e.g. employment, rental) and is calculated accordingly.
In addition, on 8 May 2016, the Law ‘Unified Social Security System – Reform of insurance and pension system- Income taxation and gaming taxation regulations’ has been adopted, introducing important amendments mainly to individual income taxation. Said law also constitutes a fundamental pension reform. The tax scale applying to employment income, pensions, and business profits is illustrated below:
|Income tax scale (salaries, pensions, and business profits)|
|Amount of income (EUR)||Tax rate (%)||Corresponding tax (EUR)||Total income (EUR)||Total tax (EUR)|
New tax rates and broadened tax basis applicable to income derived from real estate are introduced. In particular:
|Income tax scale (rental)|
|Amount of income (EUR)||Tax rate (%)||Corresponding tax (eur)||Total income (EUR)||Total tax (EUR)|
An incentive for upgrading buildings regarding energy efficiency, functionality, and aesthetics is available in case these have not or will not be included in a building upgrading program. In detail, the income tax reduction equals 40% of the amount of the relative expenditure effected from 1 January 2020 to 31 December 2022.
The general rule for determining an individual’s tax residence status is one’s physical presence in Greece in any 12-month period.
Foreign nationals may be taxed as “residents” or “nonresidents”. Residents are subject to Greek income tax on their worldwide annual income, regardless of their nationality and the place where this income has been generated, paid, or remitted. Nonresidents are taxed only on income derived from a source within Greece or outside Greece related to their Greek duties.
The individual income tax for a resident is calculated at progressive rates ranging from 22% to 45%. The 45% rate applies to annual income arising from employment services, pensions, freelancer’s activities, and agricultural activities, which is the aggregate of over € 40,000.
The individual income tax for a nonresident is calculated at progressive rates ranging from 22% to 45%. The 45% rate applies to annual income from employment services, pensions, freelancer’s activities, and agricultural activities, which is the aggregate of over € 40,000.
Nonresident individuals subject to Greek income tax must obtain a Greek tax identification number so-called “AFM” and appoint a tax representative against the Greek tax authorities to file an annual income tax return with the competent tax office.
Foreign taxpayers who qualify as non-Greek tax residents may enjoy the tax reliefs of Greek tax residents provided that they maintain their residence in an EU or European Economic Area (EEA) country and (i) generate at least 90% of their worldwide income in Greece or (ii) can prove that their taxable income is so low that they would be entitled to tax relief in their country.
The non-resident legal person, legal entity, or individual pursuing business activity may elect to be taxed on income from royalties and fees for technical services, administration fees, and fees for consulting or similar services under the rules applicable to tax residents who receive such fees and then credit the WHT against the income tax due.
Corporate Tax Income (CTI). The employer is responsible for contributing to Solidarity Tax, Income Tax, and Social Security Contributions (IKA).
Taxes of Employer:
- 13.33% – Pension Fund
- 4.55% – Health Care
- 3.25% – Supplementary Insurance
- 3.68% – Additional Contributions.
Payroll Cycle in Greece
Greece has no legislation concerning standard pay days in employment relationships. However, it is common that salary is paid monthly at the end of the calendar month for work performed during that month via a deposit in his bank account.
Depending on the personal status of the employee (for example, whether he or she is married, has children, has the previous working experience, etc.), the National General CLA provides that the employee is entitled to additional allowances on top of the minimum basic salary (i.e., marriage and children allowance, multiple years of service allowance, etc.).
Furthermore, employees are entitled to an additional one month of salary at Christmas as a Christmas allowance, one-half month’s salary at Easter as an Easter allowance, and one-half month’s salary at annual vacation time as vacation allowance, thereby receiving 14 monthly salaries per year.
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How Acumen’s International PEO and Payroll Service can Benefit Your Business in Greece
Compensating your local and expat workforce in Greece and closely adhering to Greek taxation requirements can divert your attention and resources from activities that help your business grow. A reliable global employment solution like Acumen’s Global PEO and Payroll service can take a substantial burden off your shoulders so you can focus on running your company.
Outsourcing the administrative and compliance tasks involved in employee payroll is one approach, but we have a better solution. Acumen International offers a global PEO and payroll solution that goes beyond outsourcing. We hire and compensate your global workforce on your behalf and take care of all the payroll details while ensuring full compliance with Greek labor and taxation laws.
It is important to note that Acumen does not provide international global payroll services as a standalone solution but only as a part of our global PEO and Payroll solution.
Our comprehensive global PEO and payroll services are just some benefits of partnering with Acumen International. We make it easy for you to achieve your business goals in Greece by officially employing and compensating your best selected global talent – locals and expats – without concerns for legal and compliance risks faced by global employers.
Disclaimer: Any of the above information is subject to changes imposed by Greek laws. To get the latest updates on taxation in Greece and in 190 countries worldwide, contact Acumen’s team of global employment experts.