Legal Reforms: Changes Making It Easier to Invest and Settle Disputes in Greece

Reading time: 15 minutes

Table of Contents

1. Introduction
2. Overview of Recent Legal Reforms
3. Investment-Friendly Changes
4. Dispute Resolution Improvements
5. Impact on Foreign Direct Investment
6. Challenges and Future Outlook
7. Conclusion
8. FAQs

1. Introduction

Greece, a country with a rich history and stunning landscapes, has long been an attractive destination for investors and expatriates alike. However, bureaucratic hurdles and an often opaque legal system have historically deterred many from fully embracing the opportunities this Mediterranean nation has to offer. In recent years, the Greek government has implemented a series of legal reforms aimed at streamlining processes, enhancing transparency, and creating a more investor-friendly environment. These changes are not only reshaping the economic landscape but also making it easier for individuals and businesses to settle disputes efficiently.

This comprehensive analysis delves into the key legal reforms that are transforming Greece’s investment climate and dispute resolution mechanisms. We’ll explore how these changes are impacting various sectors of the economy, examine the challenges that remain, and project future trends that investors and legal professionals should be aware of.

2. Overview of Recent Legal Reforms

The Greek government has embarked on an ambitious program of legal reforms designed to modernize the country’s regulatory framework and align it more closely with international best practices. These reforms encompass a wide range of areas, from business registration and licensing to court procedures and alternative dispute resolution mechanisms.

2.1 Key Areas of Reform

• Simplification of business registration procedures
• Streamlining of investment licensing processes
• Modernization of bankruptcy laws
• Enhancement of intellectual property protection
• Introduction of new forms of alternative dispute resolution
• Digitalization of court processes and public administration

These reforms represent a significant shift in Greece’s approach to economic governance and legal administration. By addressing long-standing inefficiencies and introducing modern practices, the government aims to create a more competitive and attractive business environment.

3. Investment-Friendly Changes

One of the primary focuses of Greece’s legal reforms has been to create a more welcoming environment for both domestic and foreign investors. These changes are designed to reduce bureaucratic red tape, accelerate approval processes, and provide greater certainty for businesses operating in the country.

3.1 Simplified Business Registration

The introduction of a one-stop-shop system for business registration has significantly reduced the time and cost associated with starting a new enterprise in Greece. This streamlined process allows entrepreneurs to complete all necessary registrations and obtain required licenses through a single point of contact, often within a matter of days rather than weeks or months.

3.2 Fast-Track Investment Procedures

For large-scale investment projects, Greece has implemented a fast-track approval process. This mechanism provides expedited review and approval for strategic investments, particularly in sectors such as energy, tourism, and technology. The fast-track procedure not only accelerates the licensing process but also offers investors a dedicated project manager to guide them through regulatory requirements.

3.3 Golden Visa Program Enhancements

Greece’s Golden Visa program, which offers residency permits to non-EU nationals who make significant investments in the country, has been refined to make it more attractive and accessible. Recent changes include lowering the minimum investment threshold for certain types of investments and expanding the range of qualifying investment activities. Additionally, the process of obtaining a passport of greece through investment has been streamlined, making it an attractive option for high-net-worth individuals seeking EU residency.

4. Dispute Resolution Improvements

Recognizing that efficient dispute resolution is crucial for a healthy business environment, Greece has implemented several reforms to its judicial system and alternative dispute resolution mechanisms.

4.1 Modernization of Court Procedures

The Greek judiciary has undergone significant modernization efforts, including the digitalization of court processes and the introduction of electronic filing systems. These changes aim to reduce case backlogs, speed up proceedings, and enhance transparency in the judicial process.

4.2 Expansion of Alternative Dispute Resolution

Greece has placed increased emphasis on alternative dispute resolution (ADR) methods, such as mediation and arbitration. New laws have been introduced to promote the use of ADR, including mandatory mediation for certain types of disputes. These measures are designed to provide faster, more cost-effective resolution options for businesses and individuals.

4.3 Specialized Commercial Courts

The establishment of specialized commercial courts in major cities has been a significant development. These courts are staffed by judges with expertise in business and financial matters, ensuring more informed and efficient handling of complex commercial disputes.

5. Impact on Foreign Direct Investment

The legal reforms implemented in Greece have had a tangible impact on the country’s attractiveness to foreign investors. Data from the Bank of Greece and international economic organizations indicate a steady increase in foreign direct investment (FDI) inflows since the implementation of these reforms.

5.1 FDI Trends

According to recent statistics, FDI inflows to Greece have shown a consistent upward trend over the past five years:

• 2018: €3.4 billion
• 2019: €4.5 billion
• 2020: €3.1 billion (slight decrease due to global pandemic)
• 2021: €5.2 billion
• 2022: €7.1 billion (preliminary data)

This growth in FDI is particularly notable in sectors such as real estate, renewable energy, and technology services, which have benefited significantly from the new legal framework.

5.2 Investor Confidence

Surveys of international investors reveal growing confidence in the Greek business environment. A recent study by Ernst & Young found that 62% of surveyed investors viewed Greece’s current investment climate positively, up from 38% just three years ago. This increased confidence is largely attributed to the improved legal and regulatory framework resulting from recent reforms.

6. Challenges and Future Outlook

While the legal reforms in Greece have undoubtedly improved the country’s business and investment landscape, several challenges remain that require ongoing attention and further reform efforts.

6.1 Remaining Challenges

• Persistent bureaucracy in some areas of public administration
• Slow pace of judicial proceedings, despite recent improvements
• Complexity of tax regulations and frequent changes in tax laws
• Need for further digitalization of government services
• Inconsistent application of laws and regulations across different regions

6.2 Future Reform Priorities

Looking ahead, the Greek government has outlined several priorities for future legal and regulatory reforms:

• Further simplification of business licensing procedures
• Continued modernization of the judicial system, including increased use of technology in courts
• Enhancement of intellectual property protection mechanisms
• Harmonization of Greek laws with EU regulations in emerging areas such as artificial intelligence and data protection
• Development of a more competitive tax regime to attract high-value investments

7. Conclusion

The legal reforms implemented in Greece over the past few years represent a significant step forward in creating a more investor-friendly and efficient business environment. These changes have addressed many of the longstanding barriers to investment and have contributed to a notable increase in foreign direct investment inflows.

The simplification of business registration procedures, the introduction of fast-track investment mechanisms, and improvements in dispute resolution processes have collectively enhanced Greece’s competitiveness as an investment destination. The positive impact of these reforms is evident in the growing confidence of international investors and the upward trend in FDI figures.

However, it’s important to recognize that the reform process is ongoing. Challenges remain, particularly in areas such as bureaucratic efficiency and the speed of judicial proceedings. The Greek government’s commitment to addressing these issues through future reform initiatives is encouraging and will be crucial in maintaining the positive momentum generated by recent changes.

For investors and businesses considering opportunities in Greece, the evolving legal landscape presents both opportunities and considerations. While the overall trend is decidedly positive, due diligence and expert local guidance remain essential when navigating the Greek business and legal environment.

As Greece continues to refine its legal framework and align with international best practices, the country is positioning itself as an increasingly attractive destination for investment and business operations in the Mediterranean region. The ongoing reform efforts, if sustained and effectively implemented, have the potential to unlock significant economic growth and establish Greece as a key player in the European and global business landscape.

8. FAQs

Q1: How long does it typically take to register a new business in Greece under the new reforms?

A1: With the new one-stop-shop system, simple business registrations can often be completed within 1-3 business days. More complex registrations may take up to 10 business days, which is a significant improvement from the previous system that could take several weeks or even months.

Q2: Are there any sectors that are particularly benefiting from the new investment-friendly reforms?

A2: Yes, sectors such as renewable energy, tourism, real estate, and technology services have seen significant growth in foreign investment following the reforms. The fast-track approval process has been particularly beneficial for large-scale projects in these sectors.

Q3: How has the Golden Visa program changed, and what are the current investment requirements?

A3: Recent changes to the Golden Visa program have lowered the minimum investment threshold for certain real estate investments from €250,000 to €200,000 in specific regions. Additionally, new investment options have been introduced, including the ability to qualify through purchases of government bonds or shares in Greek companies.

Q4: What improvements have been made to the dispute resolution process in Greece?

A4: Key improvements include the digitalization of court processes, the establishment of specialized commercial courts, and the promotion of alternative dispute resolution methods such as mediation and arbitration. These changes aim to speed up dispute resolution and provide more options for businesses and individuals.

Q5: Are there any upcoming legal reforms that potential investors should be aware of?

A5: The Greek government has announced plans for further reforms in areas such as intellectual property protection, digital governance, and tax regulations. Potential investors should stay informed about these developments, as they may create new opportunities or affect existing business models in Greece.

Article reviewed by Ariana Smit, Investment Portfolio Manager | Real Estate & Private Equity Expert | Driving High-Yield Investments, on March 20, 2025