Economy Profile of Greece

Ease of Doing Business in Greece

ease of doing business in greece

Rankings on Doing Business topics – Greece

rankings on doing business topics greece

Topic Scores

topic scores greece

Starting a Business

This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited liability company to start up and formally operate in each economy’s largest business city.

To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of the scores for each of the component indicators.

What the indicators measure

Procedures to legally start and formally operate a company (number)

  • Preregistration (for example, name verification or reservation, notarization)

  • Registration in the economy’s largest business city

  • Postregistration (for example, social security registration, company seal)

  • Obtaining approval from spouse to start a business or to leave the home to register the company

  • Obtaining any gender specific document for company registration and operation or national identification card

Time required to complete each procedure (calendar days)

  • Does not include time spent gathering information

  • Each procedure starts on a separate day (2 procedures cannot start on the same day)

  • Procedures fully completed online are recorded as ½ day

  • Procedure is considered completed once final document is received

  • No prior contact with officials

Cost required to complete each procedure (% of income per capita)

  • Official costs only, no bribes

  • No professional fees unless services required by law or commonly used in practice

    Paid-in minimum capital (% of income per capita)

  • Funds deposited in a bank or with third party before registration or up to 3 months after incorporation

To make the data comparable across economies, several assumptions about the business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay no bribes.

The business:

-Is a limited liability company (or its legal equivalent). If there is more than one type of limited liability company in the economy, the limited liability form most common among domestic firms is chosen. Information on the most common form is obtained from incorporation lawyers or the statistical office.

-Operates in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.

-Performs general industrial or commercial activities such as the production or sale to the public of goods or services. The business does not perform foreign trade activities and does not handle products subject to a special tax regime, for example, liquor or tobacco. It is not using heavily polluting production processes.

-Does not qualify for investment incentives or any special benefits.

-Is 100% domestically owned.

-Has five business owners, none of whom is a legal entity. One business owner holds 30% of the company shares, two owners have 20% of shares each, and two owners have 15% of shares each.

-Is managed by one local director.

-Has between 10 and 50 employees one month after the commencement of operations, all of them domestic nationals.

-Has start-up capital of 10 times income per capita.

-Has an estimated turnover of at least 100 times income per capita.

-Leases the commercial plant or offices and is not a proprietor of real estate.

-Has an annual lease for the office space equivalent to one income per capita.

-Is in an office space of approximately 929 square meters (10,000 square feet).

-Has a company deed that is 10 pages long.

The owners:

-Have reached the legal age of majority and are capable of making decisions as an adult. If there is no legal age of majority, they are assumed to be 30 years old.

-Are in good health and have no criminal record.

-Are married, the marriage is monogamous and registered with the authorities.

-Where the answer differs according to the legal system applicable to the woman or man in question (as may be the case in economies where there is legal plurality), the answer used will be the one that applies to the majority of the population.

Starting a Business – Greece

starting a business greece

Figure – Starting a Business in Greece – Score

figure starting a business in greece score

Figure – Starting a Business in Greece and comparator economies – Ranking and Score

DB 2020 Starting a Business Score

figure starting a business in greece and comparator economies ranking and score

Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of the scores for each of the component indicators.

Figure – Starting a Business in Greece – Procedure, Time and Cost

figure starting a business in greece procedure time and cost

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.

Details – Starting a Business in Greece – Procedure, Time and Cost

1 Submit with GEMI the application of establishment and its forms

Agency : Chamber of Commerce and Industry office at One-Stop Shop

The costs associated with starting a business are as follows:

  1. Fixed fee for the incorporation of IKE (for up to 10 shareholders): €60 (€18 if the company is setup via the electronic platform or 70% discount; online incorporation for multiple-member IKE is free of charge until September 2019);

  2. Fee for the submission of documents with GEMI: €10;

  3. Annual membership fee for the Chamber of Commerce in Athens: € 41 (optional);

  4. Verification of brand name and distinctive title at national level: € 30 (optional);

  5. Annual fee to maintain the company account active with GEMI: €100 (payable within 3 months after company registration). It is obligatory that all companies maintain an active ledger (merida) on which corporate actions, updates and information need to be recorded.

2 days

see procedure details

The Articles of Association of the company shall contain:

  1. the full trade name of the IKE;

  2. the domicile or an electronic address of the partners;

  3. the seat of the company;

  4. the objective of the company;

  5. verification that the company is private;

  6. the contributions of the partners by category and their value, in accordance with Articles 77 to 79, as well as the capital of the company;

  7. the sum of the company’s parts;

  8. the initial number of the parts of each partner and the category of contribution to which the parts correspond;

I) how the company is managed and represented; and

k) the duration of the company.

The following documents can be obtained at GEMI: Tax Compliance Certificate, Social Security Compliance Certificate, Tax Identification Number as well as VAT number.

A new online system (https://eyms.businessportal.gr/auth) was launched in 2018, allowing for electronic name check, business registration using standard AoA, VAT/ tax registration and registration with social security (EFKA) but the majority of entrepreneurs are still going through in person business registration.

2 Make a company seal

Agency : Seal Maker

All company books and records must be sealed before they are certified. The company seal must also contain the company’s tax registration number and competent tax office.

On May 31, 2013 the Government of Greece adopted the Law 4156/2013 abolishing the requirement to make and affix the company seal for corporations. However, it is still used in practice by banks, as the Bank of Greece has not issued a circular asking the banks to not require it. Thus, companies are still required to make a company seal in their daily practice.

3 Register with EFKA (Unified Social Security Institution)

Agency : EFKA (Unified Social Security Institution)

Once the company has been incorporated, The entrepreneur has to register with EFKA in its capacity as an employer. At the same time, the Director of IKE is legally obliged to registered with EFKA while the registration of other members of IKE is optional. Registering more members of the IKE costs an additional EUR 111.10 per person.

1 day, simultaneous with no charge

previous procedure

As of January 2015, IKE is required to keep electronically its c' category books and records. There is no obligation for handwritten company's books and records sealed by the competent Tax Authority.

1 day EUR 40

Dealing with Construction Permits

This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of data collection was completed in May 2019. See the methodology for more information

What the indicators measure

Procedures to legally build a warehouse (number)

  • Submitting all relevant documents and obtaining all necessary clearances, licenses, permits and certificates

  • Submitting all required notifications and receiving all necessary inspections

  • Obtaining utility connections for water and sewerage

  • Registering and selling the warehouse after its completion

Time required to complete each procedure (calendar days)

  • Does not include time spent gathering information

  • Each procedure starts on a separate day—though procedures that can be fully completed online are an exception to this rule

  • Procedure is considered completed once final document is received

  • No prior contact with officials

Cost required to complete each procedure (% of income per capita)

  • Official costs only, no bribes

    Building quality control index (0-15)

  • Quality of building regulations (0-2)

  • Quality control before construction (0-1)

  • Quality control during construction (0-3)

  • Quality control after construction (0-3)

  • Liability and insurance regimes (0-2)

  • Professional certifications (0-4)

To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility connections are used.

The construction company (BuildCo):

  • Is a limited liability company (or its legal equivalent) and operates in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.

  • Is 100% domestically and privately owned; has five owners, none of whom is a legal entity. Has a licensed architect and a licensed engineer, both registered with the local association of architects or engineers. BuildCo is not assumed to have any other employees who are technical or licensed experts, such as geological or topographical experts.

  • Owns the land on which the warehouse will be built and will sell the warehouse upon its completion.

The warehouse:

  • Will be used for general storage activities, such as storage of books or stationery.

  • Will have two stories, both above ground, with a total constructed area of approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3 meters (9 feet, 10 inches) high and will be located on a land plot of approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita.

  • Will have complete architectural and technical plans prepared by a licensed architect. If preparation of the plans requires such steps as obtaining further documentation or getting prior approvals from external agencies, these are counted as procedures.

  • Will take 30 weeks to construct (excluding all delays due to administrative and regulatory requirements).

The water and sewerage connections:

  • Will be 150 meters (492 feet) from the existing water source and sewer tap. If there is no water delivery infrastructure in the economy, a borehole will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built.

  • Will have an average water use of 662 liters (175 gallons) a day and an average wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300 gallons) a day.

  • Will have a constant level of water demand and wastewater flow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection.

Dealing with Construction Permits – Greece

dealing with construction permits greece

Figure – Dealing with Construction Permits in Greece – Score

figure dealing with construction permits in greece score

Figure – Dealing with Construction Permits in Greece and comparator economies – Ranking and Score

DB 2020 Dealing with Construction Permits Score

figure dealing with construction permits in greece and comparator economies ranking and score

Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with construction permits. These scores are the simple average of the scores for each of the component indicators.

Figure – Dealing with Construction Permits in Greece – Procedure, Time and Cost

figure dealing with construction permits in greece procedure time and cost

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.

Figure – Dealing with Construction Permits in Greece and comparator economies – Measure of Quality

figure dealing with construction permits in greece and comparator economies measure of quality

Details – Dealing with Construction Permits in Greece – Procedure, Time and Cost

1 Obtain proof of ownership, cadastral extract and cadastral plan

Agency : Hellenic Cadastre

BuildCo must submit proof of ownership when applying for the building permit in the form of an updated land title. BuildCo must also obtain both a cadastral extract and a cadastral plan. The cadastral extract, which must be submitted with the building permit application, depicts the wider area of the property with the National Cadastre Code (“ΚΑΕΚ”). The cadastral plan includes the site limits and other topographical information that a private engineer would need in order to prepare the topographical survey map.

2 days EUR 45

2 Obtain Topographical Survey map

Agency : Private firm

A topographical survey provides all the specifications of what can be built on the land plot such as the land plot's building potential and limitations, plot ratios, site coverage, height and other legal requirements. BuildCo must obtain a land use certificate and the street map from the Municipality before conducting the topographical survey to ensure that a warehouse can be built on the intended plot of land. BuildCo must first obtain the approved building terms from the Building Office, including a land use clearance before proceeding with the topographical survey map. The Building Office must confirm that the warehouse can be built on the intended land plot as well as any other specific building requirements for this land plot. In fact, all buildings require the approved building terms. In terms of the land use clearance, this is required for all buildings except for residential buildings which are permitted anywhere. At the same time, BuildCo may also obtain a street map from the Building Office which is also required for the topographical survey.

A topographical survey is required to obtain an archaeological clearance certificate and a building permit in Greece.

10 days EUR 1,000

3 Submit a petition for an archaeological clearance certificate

Agency : Archaeology Supervisory Authority

It is mandatory for some districts, neighborhoods or areas to obtain approval from the Archaeology Supervisory Authority. The legal regulations (i.e. approved building terms) stipulate which districts/areas require such approval and which do not. The case study warehouse would likely be built in area that requires such approval. BuildCo must submit a petition along with the required topographical survey map. Afterwards, there is an inspection to verify that there are no archaeological artifacts on the land. A clearance certificate is issued after that visit.

1 day no charge

4 Obtain archaeological clearance certificate

Agency : Archaeology Supervisory Authority

12 days no charge

5 Obtain approval of project from the Board of Architects

Agency : Board of Architects

An approval from the Board of Architects is required for any building that is larger than 1,000 sq.

m. prior to applying for the building permit (except for housing). BuildCo must submit the architectural plans, structural plans and topographical survey map to the Board. The Board of Architecture is an independent body that is comprised of various stakeholders such as private sector representatives, representatives from the Municipality's Building Office, representatives from the Technical Chamber of Commerce of Greece, representatives from the Ministry of Civilization, etc. For the case study warehouse, there would be about 3 to 5 members on the review committee.

45 days no charge

Details – Dealing with Construction Permits in Greece – Measure of Quality

details dealing with construction permits in greece measure of quality

Getting Electricity

This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure

Procedures to obtain an electricity connection (number)

  • Submitting all relevant documents and obtaining all necessary clearances and permits

  • Completing all required notifications and receiving all necessary inspections

  • Obtaining external installation works and possibly purchasing material for these works

  • Concluding any necessary supply contract and obtaining final supply

Time required to complete each procedure (calendar days)

  • Is at least 1 calendar day

  • Each procedure starts on a separate day

  • Does not include time spent gathering information

  • Reflects the time spent in practice, with little follow-up and no prior contact with officials

Cost required to complete each procedure (% of income per capita)

  • Official costs only, no bribes

  • Value added tax excluded

The reliability of supply and transparency of tariffs index (0-8)

  • Duration and frequency of power outages (0–3)

  • Tools to monitor power outages (0–1)

  • Tools to restore power supply (0–1)

  • Regulatory monitoring of utilities’ performance (0–1)

  • Financial deterrents limiting outages (0–1)

  • Transparency and accessibility of tariffs (0–1)

To make the data comparable across economies, several assumptions about the warehouse, the electricity connection and the monthly consumption are used.

The warehouse:

  • Is owned by a local entrepreneur and is used for storage of goods.

  • Is located in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.

  • Is located in an area where similar warehouses are typically located and is in an area with no physical constraints. For example, the property is not near a railway.

  • Is a new construction and is being connected to electricity for the first time.

  • Has two stories with a total surface area of approximately 1,300.6 square meters (14,000 square feet). The plot of land on which it is built is 929 square meters (10,000 square feet).

The electricity connection:

  • Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140- kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1 kilowatt (kW).

  • Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution network and is either overhead or underground, whichever is more common in the area where the warehouse is located and requires works that involve the crossing of a 10-meter road (such as by excavation or overhead lines) but are all carried out on public land. There is no crossing of other owners’ private property because the warehouse has access to a road.

  • Does not require work to install the internal wiring of the warehouse. This has already been completed up to and including the customer’s service panel or switchboard and the meter base.

The monthly consumption:

  • It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that there are no electricity cuts (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh.

  • If multiple electricity suppliers exist, the warehouse is served by the cheapest supplier.

  • Tariffs effective in January of the current year are used for calculation of the price of electricity for the warehouse. Although January has 31 days, for calculation purposes only 30 days are used.

Price of electricity (cents per kilowatt-hour)*

Price based on monthly bill for commercial warehouse in case study

*Note: Doing Business measures the price of electricity, but it is not included in the ease of doing business score nor in the ranking on the ease of getting electricity.

Getting Electricity – Greece

getting electricity greece

Figure – Getting Electricity in Greece – Score

figure getting electricity in greece score

Figure – Getting Electricity in Greece and comparator economies – Ranking and Score

DB 2020 Getting Electricity Score

figure getting electricity in greece and comparator economies ranking and score

Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are the simple average of the scores for all the component indicators except the price of electricity.

Figure – Getting Electricity in Greece – Procedure, Time and Cost

figure getting electricity in greece procedure time and cost

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures

reflected here, see the summary below.

Figure – Getting Electricity in Greece and comparator economies – Measure of Quality

figure getting electricity in greece and comparator economies measure of quality

Details – Getting Electricity in Greece – Procedure, Time and Cost

1 Submit application to HEDNO

Agency : HEDNO S.A.

In addition to the application form, the client needs to submit the following documents to request an electricity connection:

  1. Copy of the building permit authenticated by the Town Planning Agency with the special seal for electricity connection. This is necessary to obtain the final connection, but to initiate the process a simple copy of the permit is enough.

  2. Document for exemption or space binding for the installation of an internal substation issued by the competent HEDNO service for buildings greater than 2.500 cubic meters or a statutory declaration of the building's owner or the engineer for buildings smaller than 2.500 cubic meters. In case that the installation of an internal substation is compulsory, then a concession contract (buy or lease contract) must be signed prior to final connection.

  3. Installation permit from the Prefecture, according to Greek law 3325/2005 which was updated by law 3982/2011.

  4. Statement from the electrician installer about the maximum current link

After the submission of the application, HEDNO will inform by telephone the client about the date that a technical designer will visit the building for external inspection. After designer's visitation, HEDNO will send a formal letter to the client to inform him about the cost of the connection, the time that HEDNO needs for the construction works and all the documents that he has to submit before the last stage of the connection process. The connection cost can be paid by the client only at banks which are cooperating with HEDNO.

2 calendar days EUR 0

2 Receive external inspection by HEDNO and await estimate

Agency : HEDNO S.A.

A technical designer from HEDNO visits on the defined date the building and elaborates the technical plan about the way that it will be connected to the network. The client or a representative of him has to be present at the time of the external inspection.

12 calendar days EUR 0

3 Sign connection contract and await completion of external works and meter installation

Agency : HEDNO S.A.

After the payment of the connection cost, the client signs the connection contract with HEDNO. If the client is a company, has to submit the following documents to sign the contract:

  • Copy of the official journal of the Hellenic Republic, in which is published the statute of the company, as well as any further modifications to that statute.

  • Extract from the meeting proceedings of the company's Administration Council in order to determine the representatives of the company.

  • Electrician's sworn statement on the details of the internal installation. Although this statement is needed at the last stage of the connection process, it is usually submitted before signing the connection contract with HEDNO.

Then HEDNO requests an excavation permit from the local Municipality and when the permit is obtained completes the external connection works. This process takes approximately 13 days. The external works includes also the meter installation.

4 Obtain statement on the surface of the property from Municipality

Agency : Local Municipality

After internal wiring and external connections have been completed, and before the client can obtain electricity, they will need to submit to the utility a statement from the relevant Municipality showing the surface of the warehouse.

This is necessary in order for the utility to make the final connection, and is in accordance with the laws 25/75, 1080/80, and 2130/93.

33 calendar days EUR 10,895

5 Sign supply contract with supplier and obtain final connection from HEDNO

Agency : Supplier and HEDNO S.A.

Once the construction is finished and the internal wiring is ready to be connected to the external network, the client should sign a contract with a supplier. Upon signature of the contract, the supplier informs the utility HEDNO electronically through a shared online platform. HEDNO has four days from this moment (as required by the Regulatory Authority of Electricity) to make the final connection.

Takes place simultaneously with previous procedure.

4 calendar days EUR 735.21

Details – Getting Electricity in Greece – Measure of Quality

Registering Property

This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure

Procedures to legally transfer title on immovable property (number)

  • Preregistration procedures (for example, checking for liens, notarizing sales agreement, paying property transfer taxes)

  • Registration procedures in the economy's largest business city.

  • Postregistration procedures (for example, filling title with municipality)

    Time required to complete each procedure (calendar days)

  • Does not include time spent gathering information

  • Each procedure starts on a separate day – though procedures that can be fully completed online are an exception to this rule

  • Procedure is considered completed once final document is received

  • No prior contact with officials

    Cost required to complete each procedure (% of property value)

  • Official costs only (such as administrative fees, duties and taxes).

  • Value Added Tax, Capital Gains Tax and illicit payments are excluded

    Quality of land administration index (0-30)

  • Reliability of infrastructure index (0-8)

  • Transparency of information index (0–6)

  • Geographic coverage index (0–8)

  • Land dispute resolution index (0–8)

  • Equal access to property rights index (-2–0)

To make the data comparable across economies, several assumptions about the parties to the transaction, the property and the procedures are used.

The parties (buyer and seller):

  • Are limited liability companies (or the legal equivalent).

  • Are located in the periurban (that is, on the outskirts of the city but still within its official limits) area of the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.

  • Are 100% domestically and privately owned.

  • Perform general commercial activities.

    The property (fully owned by the seller):

  • Has a value of 50 times income per capita, which equals the sale price.

  • Is fully owned by the seller.

  • Has no mortgages attached and has been under the same ownership for the past 10 years.

  • Is registered in the land registry or cadastre, or both, and is free of title disputes.

  • Is located in a periurban commercial zone (that is, on the outskirts of the city but still within its official limits), and no rezoning is required.

  • Consists of land and a building. The land area is 557.4 square meters (6,000 square feet). A two- story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse is 10 years old, is in good condition, has no heating system and complies with all safety standards, building codes and legal requirements. The property, consisting of land and building, will be transferred in its entirety.

  • Will not be subject to renovations or additional construction following the purchase.

  • Has no trees, natural water sources, natural reserves or historical monuments of any kind.

  • Will not be used for special purposes, and no special permits, such as for residential use, industrial plants, waste storage or certain types of agricultural activities, are required.

  • Has no occupants, and no other party holds a legal interest in it.

image

Registering Property – Greece

Indicator

Greece

OECD high income

Best Regulatory Performance

Procedures (number)

11

4.7

1 (5 Economies)

Time (days)

26

23.6

1 (2 Economies)

Cost (% of property value)

4.8

4.2

0.0 (Saudi Arabia)

Quality of the land administration index (0-30)

4.5

23.2

None in 2018/19

Figure – Registering Property in Greece – Score

image

16.7

image

88.0

image

67.7

image

15.0

Procedures

Time

Cost

Quality of the land administration index

Figure – Registering Property in Greece and comparator economies – Ranking and Score

DB 2020 Registering Property Score

image

0 100

81.7: Italy (Rank: 26)

81.6: Turkey (Rank: 27)

80.0: Austria (Rank: 31)

77.0: Regional Average (OECD high income)

63.3: France (Rank: 99)

46.9: Greece (Rank: 156)

Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These scores are the simple average of the scores for each of the component indicators.

Figure – Registering Property in Greece – Procedure, Time and Cost

image

image

Time (days) Cost (% of property value)

image

25

3.5

Cost (% of property value)

3

20

Time (days)

2.5

15 2

1.5

10

1

5

0.5

0 0

1 2 * 3 * 4 * 5 * 6 7 8 9 10 11

Procedures (number)

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.

Figure – Registering Property in Greece and comparator economies – Measure of Quality

image

26.5

27.0

23.0

24.0

23.2

4.5

30

Index score

25

20

15

10

5

0

Greece Austria France Italy Turkey OECD

high income

Details – Registering Property in Greece – Procedure, Time and Cost

image

No. Procedures Time to Complete Associated Costs

  1. Receive site visit by the engineer

Agency : Engineer

An inspection by an engineer is required for the new topographic site plan to be drafted.

  1. day Included in Procedure 2

  2. Obtain a topographic site plan and a certificate for the absence of non-licensed construction by the engineer

Agency : Engineer

After the inspection in Procedure 1, it is necessary to issue a recent topographic diagram depicting the boundaries of the property (new site plan) sealed and signed by the engineer. The plan shall be submitted to the notary public a few days before the conclusion of the sale contract.

According to Art. 40 of Law 4409/2016, from July 16, 2018, the engineer must submit the topographic diagram electronically to the database of respective national cadastre.

According to Law N. 4495/2017, a certificate from an engineer is required stating that there are no illegal constructions and change of ancillary uses to the principal use of the property. If there has been a change, the certificate must state that such illegal constructions and uses have been duly settled before the transfer of the real property.

image

3

Lawyer conducts a title and encumbrances search at the Land Registry and drafts the initial sale and purchase agreement

Agency : Land Registry (“Ypothikofilakeion”)

A lawyer conducts a search of the ownership titles, encumbrances and claims at the Land Registry. Only lawyers are entitled to perform a search at the Land Registry. Once the lawyer obtains all the necessary information, the lawyer drafts the initial sale and purchase agreement.

1 day

EUR 4,486.09; (EUR 440

+ 0.5% of the property value between 44 000 –

1.4 million.

According to the new Lawyer’s Code, the lawyer’s fee is freely agreed with the clients. In the absence of such an agreement, the new Lawyer’s Code provides a new schedule of fees which is included as Annex II of the new Code.

According to Law 4512/2018, the National Cadastre and Mapping Agency S.A. was abolished and deleted from the General Commercial Register (GEMI). A new Public Entity, Hellenic Cadastre, was established under the supervision of the Minister of Environment and Energy. The Hellenic Cadastre shall act as a full legal successor of the National Cadastre and Mapping Agency S.A. and shall be substituted automatically in all the competencies, rights, obligations and other legal relationships of the earlier entity. Law4512/2018 provides for the gradual abolition of land registers and cadastral offices within 24 months from the date of its publication in the Government Gazette. Within said period the Board of Directors of the new entity shall issue implementing decisions, which shall be published in the Government Gazette, following a recommendation of the General Director. The date on which the operation of the Land Registry Offices and Land Registers will cease and the operation of the Cadastral Offices and their branches of the new entity shall begin, will be published in the form of a relevant announcement of the Agency on its website. Therefore for the next 2 years, the operation of Land Registries and Cadastre will continue based on the currently applicable legislation.

Lawyer fees are freely agreed with the parties. The Annex II of the new Lawyer's code give an indicative fee schedule for

legal fees.)

This certificate of the engineer is valid for two months following the date of its signing and shall be annexed to the agreement. Furthermore, a declaration of the seller is needed, stating that there are no illegal constructions or planning offences in the property being sold.

  1. days EUR 400

    image

    4 Obtain property tax certificate from the Municipality

    Agency : Municipality of Athens

    According to Art. 59 of Law 4483/2017 in the event of a transfer of the ownership of all kinds of property for any reason and before signing the transfer contract, the sellers are required to provide the notary with a certificate of the relevant local authority stating that no real estate fees are due; otherwise the transfer contract will be invalid.

    If the applications are submitted during the day from 9:00 a.m. to 12:30 p.m. to the Municipality, the certificate will be issued within the same day. Any applications submitted after 12:30 p.m. will be serviced in the following day.

    1 day no charge

    image

    image

    5

    Seller obtains tax clearance certificate and the Real Estate Unified Tax clearance certificate from the Tax Authority

    Agency : Tax Authority

    On January 2014, a new Unified Real Estate Ownership tax was created to the acquisition of in- rem rights over real estate. For the notarial deed to be valid, the taxpayer has to present a tax certificate issued by the competent Tax Authority to the Notary. It states that the property has been properly declared as well as that the taxpayer has paid off the Unified Real Estate Ownership tax (applicable Law 4223/2013) or the Real Estate Tax (applicable Law 3842/2010) over the past five years before the signature of the deed that transfers the property at issue.

    Less than one day,

    online

    no charge

    According to article 12 of Law 4174/2013, the transferor of the property is required to submit to the

    Notary a tax clearance certificate stating that there are no debts towards the Greek State.

    image

    6 Seller obtains a certificate from the Unified Social Security Organization (EFKA)

    Agency : Unified Social Security Organization (EFKA)

    The seller must obtain a certificate of good standing from the Social Security Institute, which assures that the seller (company) has been paying its social security.

    Since January 2017 all Social Security Institutions have been unified into the Unified Social Security Organization (EFKA) (Implementation of Law 4387/2016 implementing reform in the social security system).

    image

    7

    Payment of property transfer tax at the Tax Authority

    Agency : Inland Revenue Service

    Parties obtain a copy of the declaration made before the Tax Authority with powers on the locality of the property verifying that the buyer has paid the property transfer tax. According to Art. 11 of Law 4223/2013 concerning the Single Property Tax, the transfer tax imposed on the buyer is 3% of the transfer price of the property.

    1 day

    EUR 26,364.43; (For the

    buyer, 3% of the property value plus third party duties 0,3% (City Tax).)

    According to the Income Tax Code (L.4172/2013), any income equal to the added value deriving from a transfer of property is subject to the 15% capital gains tax. The term "added value" means the difference between the price the seller had paid to obtain the property and the amount he/she receives when selling the same property.

    According to Art. 43 of the latest Income Tax Code, if the seller is a natural person, this tax rate is 15% of the above-described income from the property transfer. In this case, the tax is collected in advance by the notary, who shall pay it to the Tax Authority. Taxation of capital gains has been suspended until 31.12. 2019, according to Art. 101 of Law 4583/2018 (the new “Income Tax Code”), as amended by Art. 99 par. 5 of L. 4446/2016 (FEK A 240/22.12.2016.

    If the seller is a legal entity, according to the provisions of Art. 58 par. 1 of the new Income Tax Code, as amended by Art. 23 of Law 4579/2018 (FEK Α' 201/03-12-2018), the legal entity shall include the price of the property transfer at the end of the financial year to its income declaration (which turns the tax payable to the corporate income tax rate at 28%).

    The amendment provides for the gradual reduction of the Greek statutory CIT rate from 29% to 25% for the fiscal year 2022 onwards. All legal persons and legal entities, apart from credit institutions, will be subject to 28% for the fiscal year 2019, 27% for the fiscal year 2020, 26% for the fiscal year 2021, 25% for the fiscal year 2022 onwards.

    According to the Circular of 30/12/2016 of the Minister for Labor and Social Security, the certificate is issued to any natural or legal person that does not owe any dues as regards to social security contributions or that has entered into an arrangement for the payment of any outstanding contributions and complies with the terms of this arrangement. It is also stated that the social security clearance certificates are issued for legal entities or individuals that are obliged to pay social security contributions or are legally responsible for legal entities, among others, for the aim of transferring immovable assets.

    Less than one day, online

    no charge

  2. Deliver the initial draft of the sale and purchase agreement to the Bar Association of Athens

    Agency : Bar Association of Athens

    However, this is still a common practice for commercial properties in Athens. In the latter case, the lawyer delivers the initial draft of the sale agreement to the Bar Association of Athens. The process is as follows:

    1. Lawyer submits the initial draft sale and purchase agreement to the Bar Association of Athens (BAA).

    2. BAA issues the lawyer an invoice that legal fees are going to be charged.

    3. BAA reports the information the national tax authority based on the lawyer’s submission.

    4. BAA charges the lawyer a minimum legal fee as mandated by law, which the lawyer pays once he receives the payment from the client.

      1 day Lawyer fees included in Procedure 2

      image

      image

  3. A notary public drafts and notarizes the final sale and purchase agreement and prepares the transfer deed

    Agency : Notary

    As of 1/1/2014, the attendance of lawyers to the notarization of the sale and purchase agreement is no longer mandatory by law. However, it remains a common practice for local companies involved in a commercial property transfer, to hire a lawyer to carry out the search, review the final sale and purchase agreement and be present at the moment that the parties sign the deed in front of the Notary. It is at the absolute and free discretion of the contracting parties whether they wish to have lawyers representing them and attending the conclusion of the sale and purchase notarial deed.

    The notary drafts and notarizes the final sale and purchase agreement and prepares the public deed in the presence of the parties (and their lawyers if they wish), who must also sign.

    The notary checks up on the documentation which legitimizes the legal representatives of the contracting parties(i.e. Minutes of the Board of Directors regarding the representation of the company published in the Government Gazette, Minutes of the Board of Directors and notarized Power of Attorney regarding the authorization of the contracting party to act on behalf of the company and execute a sale agreement regarding the specific real estate), the ID’s of seller and buyer and attaches to the Public Deed the documentation obtained in the previous Procedures. The documentation includes: (i) Site plan or Cadastral extract; (ii) Declaration of the engineer that the buildings have been built in accordance with the building permit or that any divergence has been legalized (obtained in Procedure No.2); (iii) Sale agreement (prepared in Procedure No.3);

    (iv) Property tax certificate issued by the Municipality (obtained in Procedure No.4) (v) Tax clearance certificate and Certificate that the Real Estate Unified Tax for the last 5 years for the specific property has been paid ((obtained in Procedure No. 5); (vi) Building's certificate of energy efficiency if required (not in the Doing Business case study because the property is a warehouse)

    (vii) Social Security certificate (obtained in Procedure No. 6) (viii) Verification of payment of transfer tax (obtained in procedure No. 7) and (viii) Copy of the building license.

    1 day EUR 5,930.92; (Notary fees according to the following fee schedule amended by the Ministerial Decision 72386/2015 (plus 24% VAT):

    • 0.8% of property value up to EUR 120,000

    • 0.7% of property value between EUR 120,000.01

      and 380,000

    • 0.65% of property value between EUR 380,000.01

    and EUR 2.000,000

    The fixed fee of EUR 20 The fee for additional sheets of the notarial deed: EUR 5 per sheet)

  4. The deed is recorded under the name of the buyer at the Land Registry

Agency : Land Registry (“Ypothikofilakeion”)

According to Art. 369 and Art. 1033 of the Greek Civil Code, contracts relating to real property (such as a purchase document) must be drafted and executed by and before a notary public. The public deed is delivered to the Real Estate Office to be recorded under the name of the buyer. At the same time, parties request a property certificate, an ownership certificate, a non-opposition certificate and a records certificate from the Real Estate Office. The transfer of deeds usually takes place during the day of application.

14 days EUR 4,081.78; (0.475% of

image

11

Registration of the transfer at the Cadastre (ktimatologio)

Agency : Cadastre (“Ktimatologio”)

The transfer is registered in the Cadastre. Since Athens is going through a so-called "Cadastre creation" process, the transfer is submitted to the Cadastre office to consolidate the information during the process of implementing the Hellenic Cadastre office in Athens.

1 day

EUR 35

the property value (registrar’s rights) + EUR 3 for the stamp fee for application + EUR 6.50 for each of the 4 certificates (EUR 4.50 for the certificate + EUR 2 for stamp duty))

image

Takes place simultaneously with previous procedure.

image

Details – Registering Property in Greece – Measure of Quality

Answer

Score

Quality of the land administration index (0-30)

4.5

Reliability of infrastructure index (0-8)

0.0

Type of land registration system in the economy:

Dual system (Title &

Deed)

What is the institution in charge of immovable property registration?

Land Registry

In what format are past and newly issued land records kept at the immovable property registry of the largest

Paper

0.0

business city of the economy —in a paper format or in a computerized format (scanned or fully digital)?

Is there a comprehensive and functional electronic database for checking for encumbrances (liens, mortgages,

No

0.0

restrictions and the like)?

Institution in charge of the plans showing legal boundaries in the largest business city:

National Cadastre

and Mapping Agency

of Greece (Hellenic

Cadastre)

In what format are past and newly issued cadastral plans kept at the mapping agency of the largest business

Paper

0.0

city of the economy—in a paper format or in a computerized format (scanned or fully digital)?

Is there an electronic database for recording boundaries, checking plans and providing cadastral information

No

0.0

(geographic information system)?

Is the information recorded by the immovable property registration agency and the cadastral or mapping agency

Separate databases

0.0

kept in a single database, in different but linked databases or in separate databases?

Do the immovable property registration agency and cadastral or mapping agency use the same identification

No

0.0

number for properties?

Transparency of information index (0–6)

1.5

Who is able to obtain information on land ownership at the agency in charge of immovable property registration

Only intermediaries

0.0

in the largest business city?

(notaries, lawyers,

etc.)

Is the list of documents that are required to complete any type of property transaction made publicly available–

Yes, online

0.5

and if so, how?

Link for online access:

http://www.ypothath.g

r/htm/mortgage/index.

php?

option=com_content&

view=category&layou

t=blog&id=47&Itemid

=67

http://www.ktimatologi

o.gr/sites/en/operativ

ecadastre/Pages/MV

dos7R2qAD5uAJy_E

N.aspx The list of

documents for the

conclusion of the

transaction can be

obtained from a

public notary: Certain

Notary Public

Associations publish

the list of documents

online (e.g. the

Association of Public

Notaries of

Thessaloniki:

http://www.notarius.gr

/encyclical/notarial_a

cts/225_27-2-14).

Is the applicable fee schedule for any type of property transaction at the agency in charge of immovable property

Yes, online

0.5

registration in the largest business city made publicly available–and if so, how?

Link for online access:

Not all Land

Registries charge the

same fees. The

Athens Land Registry

has an online tool for

calculating the

approximate fees for

the registration of the

notarial deed

(http://www.ypothath.

gr/htm/mortgage/inde

x.php?

option=com_content&

view=article&id=171:

main-cost-

cost&catid=66:main-

cost).

Does the agency in charge of immovable property registration agency formally commit to deliver a legally binding document that proves property ownership within a specific timeframe –and if so, how does it communicate the service standard?

No

0.0

Link for online access:

Is there a specific and independent mechanism for filing complaints about a problem that occurred at the agency in charge of immovable property registration?

No

0.0

Contact information:

Are there publicly available official statistics tracking the number of transactions at the immovable property registration agency?

No

0.0

Number of property transfers in the largest business city in 2018:

Who is able to consult maps of land plots in the largest business city?

Only intermediaries and interested parties

0.0

Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how?

Yes, online

0.5

Link for online access:

http://www.ktimatologi o.gr/sites/en/operativ ecadastre/Pages/MV dos7R2qAD5uAJy_E N.aspx http://www.ypothath.g r/htm/mortgage/index. php? option=com_content& view=category&layou t=blog&id=69&Itemid

=94

Does the cadastral/mapping agency formally specifies the timeframe to deliver an updated cadastral plan—and if so, how does it communicate the service standard?

No

0.0

Link for online access:

Is there a specific and independent mechanism for filing complaints about a problem that occurred at the cadastral or mapping agency?

No

0.0

Contact information:

Geographic coverage index (0–8)

0.0

Are all privately held land plots in the largest business city formally registered at the immovable property registry?

No

0.0

Are all privately held land plots in the economy formally registered at the immovable property registry?

No

0.0

Are all privately held land plots in the largest business city mapped?

No

0.0

Are all privately held land plots in the economy mapped?

No

0.0

Land dispute resolution index (0–8)

3.0

Does the law require that all property sale transactions be registered at the immovable property registry to make them opposable to third parties?

Yes

1.5

Legal basis:

Art. 1198 and 1033 of the Civil code

Is the system of immovable property registration subject to a state or private guarantee?

Yes

0.5

Type of guarantee:

State guarantee

Legal basis:

Art. 1198 and 1033 of the Civil code

Is there a is a specific, out-of-court compensation mechanism to cover for losses incurred by parties who engaged in good faith in a property transaction based on erroneous information certified by the immovable property registry?

No

0.0

Legal basis:

Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., checking the compliance of contracts with requirements of the law)?

Yes

0.5

If yes, who is responsible for checking the legality of the documents?

Registrar; Notary;

Does the legal system require verification of the identity of the parties to a property transaction?

Yes

0.5

If yes, who is responsible for verifying the identity of the parties?

Notary;

Is there a national database to verify the accuracy of government issued identity documents?

No

0.0

What is the Court of first instance in charge of a case involving a standard land dispute between two local businesses over tenure rights for a property worth 50 times gross national income (GNI) per capita and located in the largest business city?

First Instance Court of Athens

How long does it take on average to obtain a decision from the first-instance court for such a case (without appeal)?

More than 3 years

0.0

Are there publicly available statistics on the number of land disputes at the economy level in the first instance court?

No

0.0

Number of land disputes in the economy in 2018:

Equal access to property rights index (-2–0)

0.0

Do unmarried men and unmarried women have equal ownership rights to property?

Yes

Do married men and married women have equal ownership rights to property?

Yes

0.0

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Getting Credit

This topic explores two sets of issues—the strength of credit reporting systems and the effectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

image

What the indicators measure

Case study assumptions

Strength of legal rights index (0–12)

  • Rights of borrowers and lenders through collateral laws (0-10)

  • Protection of secured creditors’ rights through bankruptcy laws (0-2)

    Depth of credit information index (0–8)

  • Scope and accessibility of credit information distributed by credit bureaus and credit registries (0-8)

    Credit bureau coverage (% of adults)

  • Number of individuals and firms listed in largest credit bureau as a percentage of adult population

    Credit registry coverage (% of adults)

  • Number of individuals and firms listed in credit registry as a percentage of adult population

Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions through 2 sets of indicators. The depth of credit information index measures rules and practices affecting the coverage, scope and accessibility of credit information available through a credit registry or a credit bureau. The strength of legal rights index measures the degree to which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined whether a unitary secured transactions system exists. Then two case scenarios, case A and case B, are used to determine how a nonpossessory security interest is created, publicized and enforced according to the law. Special emphasis is given to how the collateral registry operates (if registration of security interests is possible). The case scenarios involve a secured borrower, company ABC, and a secured lender, BizBank.

In some economies the legal framework for secured transactions will allow only case A or case B (not both) to apply. Both cases examine the same set of legal provisions relating to the use of movable collateral.

Several assumptions about the secured borrower (ABC) and lender (BizBank) are used:

  • ABC is a domestic limited liability company (or its legal equivalent).

  • ABC has up to 50 employees.

  • ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.

  • Both ABC and BizBank are 100% domestically owned.

The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests).

In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets.

image

Getting Credit – Greece

Indicator

Greece

OECD high income

Best Regulatory Performance

Strength of legal rights index (0-12)

2

6.1

12 (5 Economies)

Depth of credit information index (0-8)

7

6.8

8 (53 Economies)

Credit registry coverage (% of adults)

0.0

24.4

100.0 (2 Economies)

Credit bureau coverage (% of adults)

69.9

66.7

100.0 (14 Economies)

Figure – Getting Credit in Greece – Score

image

45.0

Score – Getting Credit

Figure – Getting Credit in Greece and comparator economies – Ranking and Score

DB 2020 Getting Credit Score

image

0 100

75.0: Turkey (Rank: 37)

64.3: Regional Average (OECD high income) 55.0: Austria (Rank: 94)

50.0: France (Rank: 104)

45.0: Greece (Rank: 119)

45.0: Italy (Rank: 119)

Note: The ranking of economies on the ease of getting credit is determined by sorting their scores for getting credit. These scores are the sum of the scores for the strength of legal rights index and the depth of credit information index.

Figure – Legal Rights in Greece and comparator economies

image

7

6.1

4

4

2

2

8

7

Index Score

6

5

4

3

2

1

0

Greece Austria France Italy Turkey OECD

high income

Details – Legal Rights in Greece

image

Strength of legal rights index (0-12) 2

image

Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without requiring a specific description

of collateral?

No

Does an integrated or unified legal framework for secured transactions that extends to the creation, publicity and enforcement of functional equivalents No to security interests in movable assets exist in the economy?

image

May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds and replacements of the

original assets?

No

Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring a specific description of No collateral?

image

Is a collateral registry in operation for both incorporated and non-incorporated entities, that is unified geographically and by asset type, with an

electronic database indexed by debtor's name?

No

Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and obligations be secured between parties; and can the collateral agreement include a maximum amount for which the assets are encumbered?

Yes

Does a notice-based collateral registry exist in which all functional equivalents can be registered? No

Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be performed online by any interested third No party?

Are secured creditors paid first (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency procedure? No

Are secured creditors paid first (i.e. before tax claims and employee claims) when a business is liquidated? No

image

Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law allow the secured creditor to sell No the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt?

Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised reorganization procedure? Does the law protect secured creditors’ rights by providing clear grounds for relief from the stay and sets a time limit for it?

Yes

Figure – Credit Information in Greece and comparator economies

image

8

7

7

7

6.8

6

9

8

Index Score

7

6

5

4

3

2

1

0

Greece Austria France Italy Turkey OECD

high income

image

Details – Credit Information in Greece

image

Depth of credit information index (0-8)

Credit bureau

Credit registry

Score

Are data on both firms and individuals distributed?

Yes

No

1

image

Are data from retailers or utility companies – in addition to data from banks and

financial institutions – distributed?

No

No

0

Are both positive and negative credit data distributed? Yes No 1

image

Are data on loan amounts below 1% of income per capita distributed?

Yes

No

1

Are at least 2 years of historical data distributed? (Credit bureaus and registries that distribute more than 10 years of negative data or erase data on defaults as soon as they are repaid obtain a score of 0 for this component.)

Yes No 1

By law, do borrowers have the right to access their data in the credit bureau or credit registry?

Yes No 1

image

Can banks and financial institutions access borrowers’ credit information online (for example, through an online platform, a system-to-system connection or both)?

Yes No 1

image

Total Score ("yes" to either public bureau or private registry)

7

Are bureau or registry credit scores offered as a value-added service to help banks and financial institutions assess the creditworthiness of borrowers?

Yes No 1

image

Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult population, the total score on the depth of credit information index is 0.

Coverage

Credit bureau

Credit registry

Number of individuals

4,750,920

0

Number of firms

143,464

0

Total

4,894,384

0

Percentage of adult population

69.9

0.0

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Protecting Minority Investors

This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

image

What the indicators measure

Case study assumptions

  • Extent of disclosure index (0–10): Disclosure, review, and approval requirements for related-party transactions

  • Extent of director liability index (0–10): Ability of minority shareholders to sue and hold interested directors liable for prejudicial related-party transactions; Available legal remedies (damages, disgorgement of profits, disqualification

    from managerial position(s) for one year or more, rescission of the transaction)

  • Ease of shareholder suits index (0–10): Access to internal corporate documents; Evidence obtainable during trial and allocation of legal expenses

  • Extent of conflict of interest regulation index (0-30): Sum of the extent of disclosure, extent of director liability and ease of shareholder suits indices

  • Extent of shareholder rights index (0-6): Shareholders’ rights and role in major corporate decisions

  • Extent of ownership and control index (0-7): Governance safeguards protecting shareholders from undue board control and entrenchment

  • Extent of corporate transparency index (0-7): Corporate transparency on ownership stakes, compensation, audits and financial prospects

  • Extent of shareholder governance index (0–20): Sum of the extent of shareholders rights, extent of ownership and control and extent of corporate transparency indices

  • Strength of minority investor protection index (0–50): Sum of the extent of conflict of interest regulation and extent of shareholder governance indices

To make the data comparable across economies, a case study uses several assumptions about the business and the transaction.

The business (Buyer):

  • Is a publicly traded corporation listed on the economy’s most important stock exchange.

  • Has a board of directors and a chief executive officer (CEO) who may legally act on behalf of Buyer where permitted, even if this is not specifically required by law.

  • Has a supervisory board in economies with a two-tier board system on which Mr. James appointed 60% of the shareholder-elected members.

  • Has not adopted bylaws or articles of association that go beyond the minimum requirements. Does not follow codes, principles, recommendations or guidelines that are not mandatory.

  • Is a manufacturing company with its own distribution network.

    The transaction involves the following details:

  • Mr. James owns 60% of Buyer, sits on Buyer’s board of directors and elected two directors to Buyer’s five-member board.

  • Mr. James also owns 90% of Seller, a company that operates a chain of retail hardware stores. Seller recently closed a large number of its stores.

  • Mr. James proposes that Buyer purchase Seller’s unused fleet of trucks to expand Buyer’s distribution of its food products, a proposal to which Buyer agrees. The price is equal to 10% of Buyer’s assets and is higher than the market value.

  • The proposed transaction is part of the company’s principal activity and is not outside the authority of the company.

  • Buyer enters into the transaction. All required approvals are obtained, and all required disclosures made—that is, the transaction was not entered into fraudulently.

  • The transaction causes damages to Buyer. Shareholders sue Mr. James and the executives and directors that approved the transaction.

image

Stock exchange information

Stock exchange

Athens Stock Exchange

Protecting Minority Investors – Greece

image

Listed firms with equity securities

251

Stock exchange URL http://www.helex.gr

image

Indicator

Greece

OECD high income

Best Regulatory Performance

Extent of disclosure index (0-10)

9.0

6.5

10 (13 Economies)

City Covered Athens

image

image

Ease of shareholder suits index (0-10)

5.0

7.3

10 (Djibouti)

Extent of director liability index (0-10) 4.0 5.3 10 (3 Economies)

image

Extent of ownership and control index (0-7)

6.0

4.5

7 (9 Economies)

Extent of shareholder rights index (0-6) 5.0 4.7 6 (19 Economies)

image

Figure – Protecting Minority in Greece – Score

image

70.0

Extent of corporate transparency index (0-7) 6.0 5.7 7 (13 Economies)

image

Score – Protecting Minority Investors

Figure – Protecting Minority Investors in Greece and comparator economies – Ranking and Score

DB 2020 Protecting Minority Investors Score

image

0 100

76.0: Turkey (Rank: 21)

70.0: Austria (Rank: 37)

70.0: Greece (Rank: 37)

68.2: Regional Average (OECD high income) 68.0: France (Rank: 45)

66.0: Italy (Rank: 51)

Note: The ranking of economies on the strength of minority investor protections is determined by sorting their scores for protecting minority investors. These scores are the simple average of the scores for the extent of conflict of interest regulation index and the extent of shareholder governance index.

Figure – Protecting Minority Investors in Greece and comparator economies – Measure of Quality

Greece

Austria

France

Italy

Turkey

OECD high income

image

image

6

4

9

6

5

5

6

5

5

7

5

7

7

3

8

6

4

6

7

4

7

4

5

6

6

5

9

6

6

6

5.6

5.6

6.6

4.3

4.5

7.4

0 5 10 15 20 25 30 35 40

Sub-Indicator Score

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image

image

image

image

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Extent of corporate transparency index (0-7) Extent of director liability index (0-10) Extent of disclosure index (0-10) Extent of ownership and control index (0-7) Extent of shareholder rights index (0-6) Ease of shareholder suits index (0-10)

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Details – Protecting Minority Investors in Greece – Measure of Quality

Answer

Score

Extent of conflict of interest regulation index (0-30)

Extent of disclosure index (0-10)

9.0

Whose decision is sufficient to approve the Buyer-Seller transaction? (0-3)

Board of directors excluding interested members

2.0

Must an external body review the terms of the transaction before it takes place? (0-1)

Yes

1.0

Must Mr. James disclose his conflict of interest to the board of directors? (0-2)

Full disclosure of all material facts

2.0

Must Buyer disclose the transaction in periodic filings (e.g. annual reports)? (0-2)

Disclosure on the transaction and on the conflict of interest

2.0

Must Buyer immediately disclose the transaction to the public? (0-2)

Disclosure on the transaction and on the conflict of interest

2.0

Extent of director liability index (0-10)

4.0

Can shareholders representing 10% of Buyer's share capital sue for the damage the transaction caused to Buyer? (0-1)

Yes

1.0

Can shareholders hold Mr. James liable for the damage the transaction caused to Buyer? (0-2)

Liable if negligent

1.0

Can shareholders hold the other directors liable for the damage the transaction caused to Buyer? (0-2)

Liable if negligent

1.0

Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by shareholders? (0-1)

Yes

1.0

Must Mr. James repay profits made from the transaction upon a successful claim by shareholders? (0-1)

No

0.0

Is Mr. James disqualified upon a successful claim by shareholders? (0-1)

No

0.0

Can a court void the transaction upon a successful claim by shareholders? (0-2)

Only in case of fraud or bad faith

0.0

Ease of shareholder suits index (0-10)

5.0

Before suing, can shareholders representing 10% of Buyer's share capital inspect the transaction documents? (0-1)

Yes

1.0

Can the plaintiff obtain any documents from the defendant and witnesses at trial? (0-3)

Documents that directly prove specific facts in the plaintiff’s claim

2.0

Can the plaintiff request categories of documents from the defendant without identifying specific ones? (0-1)

No

0.0

Can the plaintiff directly question the defendant and witnesses at trial? (0-2)

Preapproved questions only

1.0

Is the level of proof required for civil suits lower than that of criminal cases? (0-1)

No

0.0

Can shareholder plaintiffs recover their legal expenses from the company? (0-2)

Yes if successful

1.0

Extent of shareholder governance index (0-20)

Extent of shareholder rights index (0-6)

5.0

Does the sale of 51% of Buyer's assets require shareholder approval?

No

0.0

Can shareholders representing 10% of Buyer's share capital call for a meeting of shareholders?

Yes

1.0

Must Buyer obtain its shareholders’ approval every time it issues new shares?

Yes

1.0

Do shareholders automatically receive preemption rights every time Buyer issues new shares?

Yes

1.0

Do shareholders elect and dismiss the external auditor?

Yes

1.0

Are changes to the rights of a class of shares only possible if the holders of the affected shares approve?

Yes

1.0

Extent of ownership and control index (0-7)

6.0

Is it forbidden to appoint the same individual as CEO and chairperson of the board of directors?

No

0.0

Must the board of directors include independent and nonexecutive board members?

Yes

1.0

Can shareholders remove members of the board of directors without cause before the end of their term?

Yes

1.0

Must the board of directors include a separate audit committee exclusively comprising board members?

Yes

1.0

Must a potential acquirer make a tender offer to all shareholders upon acquiring 50% of Buyer?

Yes

1.0

Must Buyer pay declared dividends within a maximum period set by law?

Yes

1.0

Is a subsidiary prohibited from acquiring shares issued by its parent company?

Yes

1.0

Extent of corporate transparency index (0-7)

6.0

Must Buyer disclose direct and indirect beneficial ownership stakes representing 5%?

Yes

1.0

Must Buyer disclose information about board members’ primary employment and directorships in other companies?

No

0.0

Must Buyer disclose the compensation of individual managers?

Yes

1.0

Must a detailed notice of general meeting be sent 21 days before the meeting?

Yes

1.0

Can shareholders representing 5% of Buyer’s share capital put items on the general meeting agenda?

Yes

1.0

Must Buyer's annual financial statements be audited by an external auditor?

Yes

1.0

Must Buyer disclose its audit reports to the public?

Yes

1.0

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Paying Taxes

This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as the administrative burden of paying taxes and contributions and complying with postfiling procedures (VAT refund and tax audit). The most recent round of data collection for the project was completed in May 2019 covering for the Paying Taxes indicator calendar year 2018 (January 1, 2018 – December 31, 2018). See the methodology for more information.

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What the indicators measure

Case study assumptions

Tax payments for a manufacturing company in 2018 (number per year adjusted for electronic and joint filing and payment)

  • Total number of taxes and contributions paid or withheld, including consumption taxes (value added tax, sales tax or goods and service tax)

  • Method and frequency of filing and payment

    Time required to comply with 3 major taxes (hours per year)

  • Collecting information, computing tax payable

  • Preparing separate tax accounting books, if required

  • Completing tax return, filing with agencies

  • Arranging payment or withholding

    Total tax and contribution rate (% of commercial profits)

  • Profit or corporate income tax

  • Social contributions, labor taxes paid by employer

  • Property and property transfer taxes

  • Dividend, capital gains, financial transactions taxes

  • Waste collection, vehicle, road and other taxes

    Postfiling Index

  • Time to comply with VAT refund (hours)

  • Time to obtain VAT refund (weeks)

  • Time to comply with a corporate income tax correction (hours)

  • Time to complete a corporate income tax correction (weeks)

Using a case scenario, Doing Business records taxes and mandatory contributions a medium size company must pay in a year, and measures the administrative burden of paying taxes, contributions and dealing with postfiling processes. Information is also compiled on frequency of filing and payments, time taken to comply with tax laws, time taken to comply with the requirements of postfiling processes and time waiting.

To make data comparable across economies, several assumptions are used:

  • TaxpayerCo is a medium-size business that started operations on January 1, 2017. It produces ceramic flowerpots and sells them at retail. All taxes and contributions recorded are paid in the second year of operation (calendar year 2018). Taxes and mandatory contributions are measured at all levels of government.

    The VAT refund process:

  • In June 2018, TaxpayerCo. makes a large capital purchase: the value of the machine is 65 times income per capita of the economy. Sales are equally spread per month (1,050 times income per capita divided by 12) and cost of goods sold are equally expensed per month (875 times income per capita divided by 12). The machinery seller is registered for VAT and excess input VAT incurred in June will be fully recovered after four consecutive months if the VAT rate is the same for inputs, sales and the machine and the tax reporting period is every month. Input VAT will exceed Output VAT in June 2018.

    The corporate income tax audit process:

  • An error in calculation of income tax liability (for example, use of incorrect tax depreciation rates, or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a corporate income tax underpayment. TaxpayerCo. discovered the error and voluntarily notified the tax authority. The value of the underpaid income tax liability is 5% of the corporate income tax liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual tax return, but within the tax assessment period.

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Paying Taxes – Greece

Indicator

Greece

OECD high income

Best Regulatory Performance

Payments (number per year)

8

10.3

3 (2 Economies)

Time (hours per year)

193

158.8

49 (3 Economies)

Total tax and contribution rate (% of profit)

51.9

39.9

26.1 (33 Economies)

Postfiling index (0-100)

76.7

86.7

None in 2018/19

Figure – Paying Taxes in Greece – Score

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91.7

image

77.7

image

62.5

image

76.7

Payments

Time

Total tax and contribution rate

Postfiling index

Figure – Paying Taxes in Greece and comparator economies – Ranking and Score

DB 2020 Paying Taxes Score

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0 100

86.6: Turkey (Rank: 26)

84.3: Regional Average (OECD high income)

83.5: Austria (Rank: 44)

79.2: France (Rank: 61)

77.1: Greece (Rank: 72)

64.0: Italy (Rank: 128)

Note: The ranking of economies on the ease of paying taxes is determined by sorting their scores for paying taxes. These scores are the simple average of the scores for each of the component indicators, with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax and contribution rate. The threshold is defined as the total tax and contribution rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total tax and contribution rate below this threshold receive the same score as the economy at the threshold.

Figure – Paying Taxes in Greece and comparator economies – Measure of Quality

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98.5

92.4

100

86.7

76.7

52.4

120

Index score

100

80

60

40

20

0

Greece Austria France Italy Turkey OECD

high income

Details – Paying Taxes in Greece

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Tax or Payments

mandatory (number) contribution

Notes on Payments

Time (hours)

Statutory tax rate

Tax base

Total tax and contribution rate (% of profit)

Notes on TTCR

Social security 1.0

contributions

online

46.0

25.06%

gross salaries

28.27

Corporate 1.0

income tax

online

78.0

29%

taxable profit

22.95

Property tax 1.0

online

various rates

assessed value

0.38

Interest tax 0.0

jointly

15%

interest income

0.26

not included

Insurance 1.0

premium

various rates

insurance premium

0.20

Road Tax 1.0

various rates

depending on truck weight

0.06

Social security 0.0

contributions on employee

jointly

0.00

Advertising tax 1.0

various rates

depending on the type of advertising

0.00

small amount

Fuel tax 1.0

It depends on the specific code of the Combined Nomenclature of the goods.

fuel consumption

0.00

Value added tax 1.0

(VAT)

online

69.0

24%

value added

0.00

not included

Totals 8

193

51.9

Details – Paying Taxes in Greece – Tax by Type

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Taxes by type

Answer

Profit tax (% of profit)

23.0

Labor tax and contributions (% of profit)

28.3

Other taxes (% of profit)

0.6

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Details – Paying Taxes in Greece – Measure of Quality

Answer

Score

Postfiling index (0-100)

76.7

VAT refunds

Does VAT exist?

Yes

Does a VAT refund process exist per the case study?

Yes

Restrictions on VAT refund process

none

Percentage of cases exposed to a VAT audit (%)

50% – 74%

Is there a mandatory carry forward period?

No

Time to comply with VAT refund (hours)

18.0

65.0

Time to obtain VAT refund (weeks)

31.0

45.5

Corporate income tax audits

Does corporate income tax exist?

Yes

Percentage of cases exposed to a corporate income tax audit (%)

0% – 24%

Time to comply with a corporate income tax correction (hours)

3.5

96.3

Time to complete a corporate income tax correction (weeks)

No tax audit per case study scenario

100

Notes: Names of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table. The hours for VAT include all the VAT and sales taxes applicable.

The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.

The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax correction and time to complete a corporate income tax correction.

N/A = Not applicable.

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Trading across Borders

Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tariffs) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

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What the indicators measure

Case study assumptions

Documentary compliance

  • Obtaining, preparing and submitting documents during transport, clearance, inspections and port or border handling in origin economy

  • Obtaining, preparing and submitting documents required by destination economy and any transit economies

  • Covers all documents required by law and in practice, including electronic submissions of information

    Border compliance

  • Customs clearance and inspections

  • Inspections by other agencies (if applied to more than 20% of shipments)

  • Handling and inspections that take place at the economy’s port or border

    Domestic transport

  • Loading or unloading of the shipment at the warehouse or port/border

  • Transport between warehouse and port/border

  • Traffic delays and road police checks while shipment is en route

To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions:

Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 days are recorded as 22×24=528 hours). If customs clearance takes 7.5 hours, the data are recorded as is. Alternatively, suppose documents are submitted to a customs agency at 8:00a.m., are processed overnight and can be picked up at 8:00a.m. the next day. The time for customs clearance would be recorded as 24 hours because the actual procedure took 24 hours.

Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars. Contributors are asked to convert local currency into U.S. dollars based on the exchange rate prevailing on the day they answer the questionnaire. Contributors are private sector experts in international trade logistics and are informed about exchange rates.

Assumptions of the case study:

  • For all 190 economies covered by Doing Business, it is assumed a shipment is in a warehouse in the largest business city of the exporting economy and travels to a warehouse in the largest business city of the importing economy.

  • It is assumed each economy imports 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the largest value (price times quantity) of auto parts. It is assumed each economy exports the product of its comparative advantage (defined by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. Shipment value is assumed to be $50,000.

  • The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport or land border crossing.

  • All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process.

  • A port or border is a place (seaport or land border crossing) where merchandise can enter or leave an economy.

  • Relevant government agencies include customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities.

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Trading across Borders – Greece

Indicator

Greece

OECD high income

Best Regulatory Performance

Time to export: Border compliance (hours)

24

12.7

1 (19 Economies)

Cost to export: Border compliance (USD)

300

136.8

0 (19 Economies)

Time to export: Documentary compliance (hours)

1

2.3

1 (26 Economies)

Cost to export: Documentary compliance (USD)

30

33.4

0 (20 Economies)

Time to import: Border compliance (hours)

1

8.5

1 (25 Economies)

Cost to import: Border compliance (USD)

0

98.1

0 (28 Economies)

Time to import: Documentary compliance (hours)

1

3.4

1 (30 Economies)

Cost to import: Documentary compliance (USD)

0

23.5

0 (30 Economies)

Figure – Trading across Borders in Greece – Score

Time

Cost

Time

Cost

Time

Cost

Time

Cost

to

to

to

to

to

to

to

to

export:

export:

export:

export:

import:

import:

import:

import:

Border

Border

Documentary

Documentary

Border

Border

Documentary

Documentary

compliance

compliance

compliance

compliance

compliance

compliance

compliance

compliance

Figure – Trading across Borders in Greece and comparator economies – Ranking and Score

image

85.5

image

71.7

image

100.0

image

92.5

image

100.0

image

100.0

image

100.0

image

100.0

DB 2020 Trading Across Borders Score

image

0 100

93.7:

94.3: Regional Average (OECD high income)

Greece (Rank: 34)

91.6: Turkey (Rank: 44)

100: Austria (Rank: 1)

100: France (Rank: 1)

100: Italy (Rank: 1)

Note: The ranking of economies on the ease of trading across borders is determined by sorting their scores for trading across borders. These scores are the simple average of the scores for the time and cost for documentary compliance and border compliance to export and import.

Figure – Trading across Borders in Greece – Time and Cost

image

24

300

1

30

1

0

1

0

image

30

Time (hours)

25

20

15

10

5

0

Export

image

Export

Time (hours) Cost (USD)

Import

Import

350

300

Cost (USD)

250

200

150

100

50

0

Border Compliance

Documentary Compliance

Border Compliance

Documentary Compliance

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Details – Trading across Borders in Greece

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Characteristics

Export

Import

Product

HS 76 : Aluminium and articles thereof

HS 8708: Parts and accessories of motor vehicles

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Border

Piraeus port

Greece- Bulgaria border crossing

Trade partner Italy Germany

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Domestic transport time (hours)

1

23

Distance (km) 15 600

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Domestic transport cost (USD) 350 808

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Details – Trading across Borders in Greece – Components of Border Compliance

Time to Complete (hours)

Associated Costs (USD)

Export: Clearance and inspections required by customs authorities

0.5

0.0

Export: Clearance and inspections required by agencies other than customs

0.0

0.0

Export: Port or border handling

24.0

300.0

Import: Clearance and inspections required by customs authorities

0.0

0.0

Import: Clearance and inspections required by agencies other than customs

0.5

0.0

Import: Port or border handling

0.5

0.0

Details – Trading across Borders in Greece – Trade Documents

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Export

Import

Bill of Lading CMR Waybill

Commercial invoice Commercial invoice

Packing list Packing list

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SOLAS certificate

Intrastat Intrastat

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Enforcing Contracts

The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local first-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and efficiency in the court system. The most recent round of data collection was completed in May 2019. See the methodology for more information.

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What the indicators measure

Case study assumptions

Time required to enforce a contract through the courts (calendar days)

  • Time to file and serve the case

  • Time for trial and to obtain the judgment

  • Time to enforce the judgment

    Cost required to enforce a contract through the courts (% of claim value)

  • Average attorney fees

  • Court costs

  • Enforcement costs

    Quality of judicial processes index (0-18)

  • Court structure and proceedings (-1-5)

  • Case management (0-6)

  • Court automation (0-4)

  • Alternative dispute resolution (0-3)

The dispute in the case study involves the breach of a sales contract between two domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes the case from simple debt enforcement.

To make the data on the time and comparable across economies, several assumptions about the case are used:

  • The dispute concerns a lawful transaction between two businesses (Seller and Buyer), both located in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.

  • The Buyer orders custom-made furniture, then fails to pay alleging that the goods are not of adequate quality.

  • The value of the dispute is 200% of the income per capita or the equivalent in local currency of USD 5,000, whichever is greater.

  • The Seller sues the Buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000 whichever is greater.

  • The Seller requests the pretrial attachment of the defendant’s movable assets to secure the claim.

  • The claim is disputed on the merits because of Buyer’s allegation that the quality of the goods was not adequate.

  • The judge decides in favor of the seller; there is no appeal.

  • The Seller enforces the judgment through a public sale of the Buyer’s movable assets.

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Standardized Case

Claim value

EUR 33,051

Enforcing Contracts – Greece

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City Covered

Athens

Court name Athens First Instance Single Member Court

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Figure – Enforcing Contracts in Greece – Score

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Indicator

Greece

OECD high income

Best Regulatory Performance

Time (days)

1711

589.6

120 (Singapore)

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Quality of judicial processes index (0-18)

12.5

11.7

None in 2018/19

Cost (% of claim value) 22.4 21.5 0.1 (Bhutan)

image

0.0

image

74.9

image

69.4

Time

Cost

Quality of judicial processes index

Figure – Enforcing Contracts in Greece and comparator economies – Ranking and Score

DB 2020 Enforcing Contracts Score

image

0 100

75.5: Austria (Rank: 10)

73.5: France (Rank: 16)

71.4: Turkey (Rank: 24)

67.8: Regional Average (OECD high income)

53.1: Italy (Rank: 122)

48.1: Greece (Rank: 146)

Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their scores for enforcing contracts. These scores are the simple average of the scores for each of the component indicators.

Figure – Enforcing Contracts in Greece – Time and Cost

1800

1600

Time (days)

1400

1200

1000

800

600

400

200

0

Time (days) Cost (% of claim value)

image

1711

27.6

24.9

20.6

22.4

21.5

17.4

1120

589.6

623

397

447

image

image

Austria France Greece Italy OECD

high income

30

Cost (% of claim value)

25

20

15

10

5

0

Turkey

Figure – Enforcing Contracts in Greece and comparator economies – Measure of Quality

Greece

Austria

France

Italy

Turkey

OECD high income

image

image

2.5

5

2

3

2.5

4

2

4.5

2.5

3

2

4.5

3

4

3

3

2.5

5

4

3.5

2.5

3.2

2.4

3.6

0 2 4 6 8 10 12 14 16

Sub-Indicator Score

image

image

image

image

Alternative dispute resolution (0-3) Case management (0-6) Court automation (0-4) Court structure and proceedings (-1-5)

Details – Enforcing Contracts in Greece

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Indicator

Time (days) 1711

Trial and judgment 1400

Filing and service 60

Cost (% of claim value) 22.4

Enforcement of judgment 251

Court fees 4.6

Attorney fees 10

Quality of judicial processes index (0-18) 12.5

Enforcement fees 7.8

Case management (0-6) 5.0

Court structure and proceedings (-1-5) 3.0

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Alternative dispute resolution (0-3) 2.5

Court automation (0-4) 2.0

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Details – Enforcing Contracts in Greece – Measure of Quality

Answer

Score

Quality of judicial processes index (0-18)

12.5

Court structure and proceedings (-1-5)

3.0

1. Is there a court or division of a court dedicated solely to hearing commercial cases?

No

0.0

2. Small claims court

1.5

2.a. Is there a small claims court or a fast-track procedure for small claims?

Yes

2.b. If yes, is self-representation allowed?

Yes

3. Is pretrial attachment available?

Yes

1.0

4. Are new cases assigned randomly to judges?

Yes, but manual

0.5

5. Does a woman's testimony carry the same evidentiary weight in court as a man's?

Yes

0.0

Case management (0-6)

5.0

1. Time standards

1.0

1.a. Are there laws setting overall time standards for key court events in a civil case?

Yes

1.b. If yes, are the time standards set for at least three court events?

Yes

1.c. Are these time standards respected in more than 50% of cases?

Yes

2. Adjournments

1.0

2.a. Does the law regulate the maximum number of adjournments that can be granted?

Yes

2.b. Are adjournments limited to unforeseen and exceptional circumstances?

Yes

2.c. If rules on adjournments exist, are they respected in more than 50% of cases?

Yes

3. Can two of the following four reports be generated about the competent court: (i) time to disposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) single case progress report?

Yes

1.0

4. Is a pretrial conference among the case management techniques used before the competent court?

No

0.0

5. Are there any electronic case management tools in place within the competent court for use by judges?

Yes

1.0

6. Are there any electronic case management tools in place within the competent court for use by lawyers?

Yes

1.0

Court automation (0-4)

2.0

1. Can the initial complaint be filed electronically through a dedicated platform within the competent court?

Yes

1.0

2. Is it possible to carry out service of process electronically for claims filed before the competent court?

No

0.0

3. Can court fees be paid electronically within the competent court?

Yes

1.0

4. Publication of judgments

0.0

4.a Are judgments rendered in commercial cases at all levels made available to the general public through publication in official gazettes, in newspapers or on the internet or court website?

No

4.b. Are judgments rendered in commercial cases at the appellate and supreme court level made available to the general public through publication in official gazettes, in newspapers or on the internet or court website?

No

Alternative dispute resolution (0-3)

2.5

1. Arbitration

1.5

1.a. Is domestic commercial arbitration governed by a consolidated law or consolidated chapter or section of the applicable code of civil procedure encompassing substantially all its aspects?

Yes

1.b. Are there any commercial disputes—aside from those that deal with public order or public policy— that cannot be submitted to arbitration?

No

1.c. Are valid arbitration clauses or agreements usually enforced by the courts?

Yes

2. Mediation/Conciliation 1.0

image

2.b. Are mediation, conciliation or both governed by a consolidated law or consolidated chapter or

section of the applicable code of civil procedure encompassing substantially all their aspects (for example, definition, aim and scope of application, desig

Yes

2.a. Is voluntary mediation or conciliation available? Yes

2.c. Are there financial incentives for parties to attempt mediation or conciliation (i.e., if mediation or No conciliation is successful, a refund of court filing fees, income tax credits or the like)?

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Resolving Insolvency

Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection was completed in May 2019. See the methodology for more information.

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What the indicators measure

Case study assumptions

Time required to recover debt (years)

  • Measured in calendar years

  • Appeals and requests for extension are included

    Cost required to recover debt (% of debtor’s estate)

  • Measured as percentage of estate value

  • Court fees

  • Fees of insolvency administrators

  • Lawyers’ fees

  • Assessors’ and auctioneers’ fees

  • Other related fees

    To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are used:

    • A hotel located in the largest city (or cities) has 201 employees and 50 suppliers. The hotel experiences financial difficulties.

    • The value of the hotel is 100% of the income per capita or the equivalent in local currency of USD 200,000, whichever is greater.

    • The hotel has a loan from a domestic bank, secured by a mortgage over the hotel’s real estate. The hotel cannot pay back the loan, but makes enough money to operate otherwise.

    In addition, Doing Business evaluates the quality of legal framework applicable to judicial liquidation and reorganization proceedings and the extent to which best insolvency practices have been implemented in each economy covered.

    Outcome

  • Whether business continues operating as a going concern or business assets are sold piecemeal

    Recovery rate for creditors

  • Measures the cents on the dollar recovered by secured creditors

  • Outcome for the business (survival or not) determines the maximum value that can be recovered

  • Official costs of the insolvency proceedings are deducted

  • Depreciation of furniture is taken into account

  • Present value of debt recovered

    Strength of insolvency framework index (0- 16)

  • Sum of the scores of four component indices:

  • Commencement of proceedings index (0-3)

  • Management of debtor’s assets index (0-6)

  • Reorganization proceedings index (0-3)

  • Creditor participation index (0-4)

image

Indicator

Greece

OECD high income

Best Regulatory Performance

Recovery rate (cents on the dollar)

32.0

70.2

92.9 (Norway)

Resolving Insolvency – Greece

image

Cost (% of estate)

9.0

9.3

1.0 (Norway)

Time (years) 3.5 1.7 0.4 (Ireland)

image

Figure – Resolving Insolvency in Greece – Score

image

Strength of insolvency framework index (0-16)

11.5

11.9

None in 2018/19

Outcome (0 as piecemeal sale and 1 as going concern) 0 .. ..

image

34.4

image

71.9

Recovery rate Strength of insolvency framework index

Figure – Resolving Insolvency in Greece and comparator economies – Ranking and Score

DB 2020 Resolving Insolvency Score

image

0 100

77.5: Italy (Rank: 21)

77.4: Austria (Rank: 22)

74.9: Regional Average (OECD high income)

74.6: France (Rank: 26)

53.1: Greece (Rank: 72)

38.5: Turkey (Rank: 120)

Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their scores for resolving insolvency. These scores are the simple average of the scores for the recovery rate and the strength of insolvency framework index.

Figure – Resolving Insolvency in Greece – Time and Cost

image

image

Time (years) Cost (% of estate)

image

22.0

5.0

3.5

14.5

10.0

1.9

9.0

9.0

9.3

1.8

1.7

1.1

6 25

Time (years)

Cost (% of estate)

5 20

4

15

3

10

2

1 5

0

Austria France Greece Italy OECD

high income

0

Turkey

Figure – Resolving Insolvency in Greece and comparator economies – Measure of Quality

image

image

image

5.5

2.5

1

2.5

5.5

2.5

2

1

6

3

1

1

5.5

3

2

3

3

3

3

1.5

5.3

2.8

2.1

1.9

Greece

Austria

France

Italy

Turkey

OECD high income

0 2 4 6 8 10 12 14 16

Sub-Indicator Score

image

image

image

image

Management of debtor's assets index (0-6) Commencement of proceedings index (0-3) Creditor participation index (0-4) Reorganization proceedings index (0-3)

Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.”

Figure – Resolving Insolvency in Greece and comparator economies – Recovery Rate

image

79.9

74.8

65.6

70.2

32.0

10.5

Recovery rate(cents on the dollar)

90

80

70

60

50

40

30

20

10

0

Greece Austria France Italy Turkey OECD high income

Details – Resolving Insolvency in Greece

details resolving insolvency in greece

Details – Resolving Insolvency in Greece – Measure of Quality

details resolving insolvency in greece measure of quality

Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.”

Employing Workers

Doing Business presents detailed data for the employing workers indicators on the Doing Business website (http://www.doingbusiness.org). The study does not present rankings of economies on these indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business.

The most recent round of data collection was completed in May 2019. See the methodology for more information.

What the indicators measure

Case study assumptions

Hiring

(i) whether fixed-term contracts are prohibited for permanent tasks; (ii) maximum cumulative duration of fixed-term contracts;

(iii) length of the maximum probationary period; (iv) minimum wage;(v) ratio of minimum wage to the average value added per worker.

Working hours

(i) maximum number of working days allowed per week; (ii) premiums for work: at night, on a weekly rest day and overtime;

(iii) whether there are restrictions on work at night, work on a weekly rest day and for overtime work; (iv) length of paid annual leave.

Redundancy rules

(i) whether redundancy can be basis for terminating workers; (ii) whether employer needs to notify and/or get approval from third party to terminate 1 redundant worker and a group of 9 redundant workers; (iii) whether the law requires employer to reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment.

To make the data comparable across economies, several assumptions about the worker and the business are used.

The worker:

  • Is a cashier in a supermarket or grocery store, age 19, with one year of work experience.

  • Is a full-time employee.

  • Is not a member of the labor union, unless membership is mandatory.

    The business:

  • Is a limited liability company (or the equivalent in the economy).

  • Operates a supermarket or grocery store in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.

  • Has 60 employees.

  • Is subject to collective bargaining agreements if such agreements cover more than 50% of the food retail sector and they apply even to firms that are not party to them.

  • Abides by every law and regulation but does not grant workers more benefits than those mandated by law, regulation or (if applicable) collective bargaining agreements.

Redundancy cost

(i) notice period for redundancy dismissal; (ii) severance payments, and (iii) penalties due when terminating a redundant worker. Data on the availability of unemployment protection for a worker with one year of employment is also collected.

Employing Workers – Greece

Details – Employing Workers in Greece

Hiring

Fixed-term contracts prohibited for permanent tasks? Yes

Maximum length of a single fixed-term contract (months) 36.0

Maximum length of fixed-term contracts, including renewals (months) No limit

Minimum wage applicable to the worker assumed in the case study (US$/month) 868.3

Maximum length of probationary period (months) 12.0

Ratio of minimum wage to value added per worker 0.3

Working hours

Standard workday 8.0

Maximum number of working days per week 6.0

Premium for night work (% of hourly pay) 25.0

Premium for work on weekly rest day (% of hourly pay) 75.0

Premium for overtime work (% of hourly pay) 27.5

Restrictions on night work? No

Restrictions on weekly holiday? Yes

Restrictions on overtime work? No

Paid annual leave for a worker with 1 year of tenure (working days) 20.0

Paid annual leave for a worker with 5 years of tenure (working days) 22.0

Paid annual leave for a worker with 10 years of tenure (working days) 25.0

Redundancy rules

Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 22.3

Third-party notification if one worker is dismissed? No

Dismissal due to redundancy allowed by law? Yes

Third-party notification if nine workers are dismissed? Yes

Third-party approval if one worker is dismissed? No

Retraining or reassignment obligation before redundancy? No

Third-party approval if nine workers are dismissed? Yes

Priority rules for reemployment? No

Priority rules for redundancies? Yes

Redundancy cost

Notice period for redundancy dismissal for a worker with 1 year of tenure (weeks of salary) 0.0

Notice period for redundancy dismissal for a worker with 5 years of tenure (weeks of salary) 0.0

Notice period for redundancy dismissal for a worker with 10 years of tenure (weeks of salary) 0.0

Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary) 0.0

Severance pay for redundancy dismissal for a worker with 1 year of tenure (weeks of salary) 8.7

Severance pay for redundancy dismissal for a worker with 5 years of tenure (weeks of salary) 13.0

Severance pay for redundancy dismissal for a worker with 10 years of tenure (weeks of salary) 26.0

Unemployment protection after one year of employment? Yes

Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary) 15.9

PEO Greece

Greece, as a Participating European Organisation (PEO) country, holds a significant role in collaborative scientific research and technological advancement within the European landscape. Through its participation in various European research programs and initiatives, Greece contributes to the collective pursuit of knowledge and innovation across diverse fields such as space exploration, fundamental physics, and advanced technology development. By engaging as a PEO member, Greece not only gains access to cutting-edge research facilities and resources but also fosters international cooperation that promotes the exchange of ideas and expertise. This partnership enables Greece to leverage its scientific potential on a broader stage, creating opportunities for its researchers and institutions to contribute to groundbreaking discoveries that have a lasting impact on both European and global scientific communities.

PEO services, or Professional Employer Organization services, play a crucial role in simplifying and streamlining human resources and employment processes for businesses operating in Greece. By partnering with a PEO, companies can effectively outsource tasks such as payroll management, employee benefits administration, tax compliance, and even recruitment and onboarding. This arrangement allows businesses, especially those new to the Greek market, to focus on their core operations while the PEO handles the intricate aspects of employment regulations, labor laws, and administrative burdens. With a deep understanding of the local business landscape, a PEO in Greece can help international companies navigate the complexities of hiring, managing, and retaining talent, ultimately contributing to smoother expansion and sustained growth in the Greek market.

Business Reforms in Greece

From May 2, 2018 to May 1, 2019, 115 economies implemented 294 business regulatory reforms across the 10 areas measured by Doing Business. Reforms inspired by

Doing Business have been implemented by economies in all regions. The following are reforms implemented since Doing Business 2008.

=Doing Business reform making it easier to do business. = Change making it more difficult to do business.

DB2020

Starting a Business: Greece made starting a business easier by reducing the time to register a company with the commercial registry and removing the requirement to obtain a tax clearance.

Protecting Minority Investors: Greece strengthened minority investor protections by requiring greater disclosure and an independent review before the approval of related-party transactions as well as greater corporate transparency of executive compensation.

DB2019

Dealing with Construction Permits: Greece streamlined its construction permitting process as building owners must now use their in-house engineer for the intermediate inspection, as opposed to the municipality.

Getting Electricity: Greece made the process of getting electricity easier by eliminating the requirement for customers applying for a connection to certify the electrician’s sworn statement on internal wiring.

Registering Property: Greece made registering property more burdensome by requiring a property tax certificate for registering a property transfer.

DB2018

Starting a Business: Greece made starting a business easier by creating a unified social security institution.

DB2017

Paying Taxes: Greece made paying taxes more costly by increasing the corporate income tax rate.

Enforcing Contracts: Greece made enforcing contracts easier by amending its rules of civil procedure to introduce tighter rules on adjournments, impose deadlines for key court events and limit the recourses that can be lodged during enforcement proceedings.

DB2016

Paying Taxes: Greece made paying taxes less costly for companies by reducing the rates for social security contributions paid by employers, making insurance premiums fully tax deductible and lowering property tax rates. At the same time, it defined entertainment expenses as nondeductible, reduced the depreciation rates for some types of fixed assets and increased the tax on interest income.

DB2015

Starting a Business: Greece made starting a business easier by lowering registration costs.

Registering Property: Greece made it easier to transfer property by reducing the property transfer tax and removing the requirement for the municipal tax clearance certificate.

Enforcing Contracts: Greece made enforcing contracts easier by introducing an electronic filing system for court users.

DB2014

Starting a Business: Greece made starting a business easier by introducing a simpler form of limited liability company and abolishing the minimum capital requirement for such companies.

Protecting Minority Investors: Greece strengthened investor protections by introducing a requirement for director approval of related-party transactions.

Paying Taxes: Greece made paying taxes more costly for companies by increasing the corporate income tax rate—though it also reduced the employers’ contribution rate to the social security fund.

Trading across Borders: Greece made trading across borders easier by implementing a system allowing electronic submission of customs declarations for exports.

DB2013

Dealing with Construction Permits: Greece reduced the time required to obtain a construction permit by introducing strict time limits for processing permit applications at the municipality.

Protecting Minority Investors: Greece strengthened investor protections by requiring greater immediate and annual disclosure of material related-party transactions.

Resolving Insolvency: Greece enhanced its insolvency process by abolishing the conciliation procedure and introducing a new rehabilitation proceeding.

DB2012

Starting a Business: Greece made starting a business easier by implementing an electronic platform that interconnects several government agencies.

Paying Taxes: Greece reduced its corporate income tax rate.

Employing Workers: Greece decreased the severance pay applicable in case of redundancy dismissals.

DB2011

Registering Property: Greece made transferring property more costly by increasing the transfer tax from 1% of the property value to 10%. Greece made registering property more difficult by increasing the time needed to transfer and register property.

DB2010

Getting Credit: Greece’s private credit bureau, Tiresias, expanded the amount of information it distributes in credit reports, improving access to credit information.

DB2009

Starting a Business: Greece made starting a business easier by reducing the minimum capital requirement, lowering the cost of the capital tax and reducing the time needed for the publication requirement.

Protecting Minority Investors: Greece strengthened investor protections by lowering the shareholding threshold required to initiate a derivative suit against directors.

Paying Taxes: Greece made paying taxes easier for companies by introducing electronic payment systems for the social security tax.

Resolving Insolvency: Greece improved its insolvency process through a new bankruptcy law that is aimed at allowing more companies to continue as a going concern

—by encouraging the reorganization of financially distressed companies, preserving business assets, ensuring equal treatment of creditors and preventing piecemeal sale.

DB2008

Paying Taxes: Greece made paying taxes less costly for companies by reducing the corporate income tax rate.

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