The Greek Economy: According to the Bank of Greece (BoG) – Greece’s central bank – economic activity continued to expand at a solid pace in 2024, with a growth rate of 2.3 percent, outperforming the euro area average for the fourth consecutive year. The main drivers of this growth were private consumption, investment, and services exports. BoG projects that the growth rate will remain at 2.3 percent in 2025, well above the euro area average, estimated around one percent.
In 2025, Greece regained an investment-grade sovereign debt credit rating from all major rating agencies, including Moody’s Ratings, S&P Global Ratings, Fitch Ratings, Morningstar DBRS, and Scope Ratings. As of March 31, 2025, Greece’s government maintains an estimated cash reserve of €40 billion ($43.5 USD as of July 2025), according to the Ministry of National Economy and Finance’s Annual Progress Report for 2025. This reserve encompasses the balance of the Single Treasury Account at the Bank of Greece, the Segregated Public Debt Servicing Account, Special Drawing Rights (SDR) reserves denominated in euros, and holdings of general government entities within and outside the Single Treasury Accounting System.
Banking System: Greece has a well-developed banking sector providing widespread access to financial services nationwide. The Greek banking system consists of a central bank (Bank of Greece, which is a Eurosystem-member central bank) and 34 credit institutions. 13 credit institutions are incorporated in Greece (nine commercial banks and four local cooperative banks). 19 credit institutions are branches of commercial banks incorporated in other EU member states, including four Europe-based subsidiaries of U.S.-headquartered banks (Bank of America, Citibank, Goldman Sachs, and J.P. Morgan). Another two credit institutions are branches of foreign banks incorporated outside the EU.
The health of Greece’s banking system, particularly the four institutions identified by the Bank of Greece as other systemically important institutions (O-SIIs) in 2024 – including Alpha Bank, Eurobank, National Bank of Greece, and Piraeus Bank – has improved significantly since the Greek financial crisis. This improvement was driven by substantial reductions of non-performing loans (NPLs) through the successful implementation of the “Hercules” securitization program. The BoG reports banks’ asset quality improved markedly in 2024, mainly thanks to NPL securitization. The ratio of NPLs to total loans fell to 3.8 percent in December 2024 (from 6.7 percent in December 2023), the lowest level since Greece joined the euro area in 2001 and converging towards EU Banking Union average of 2.3 percent as of December 2024. Despite this progress, challenges remain, particularly for non-systemically important banks that still carry legacy NPLs. Currently, Greek banks continue to demonstrate strong fundamentals, with record profitability, high liquidity, and robust capital buffers supporting credit provision to the economy.
Foreign banks are permitted to establish branches and subsidiaries in Greece and are subject to the same regulatory and supervisory framework as domestic banks. Foreign individuals can open bank accounts in Greece; however, they must comply with anti-money laundering (AML) and know-your-customer (KYC) regulations. This typically involves providing valid identification, proof of address, and, in some cases, a tax identification number. Residency is not a strict requirement, but non-residents may face additional documentation requirements. The adoption of digital banking is significant, with a substantial portion of the population utilizing online and mobile banking platforms. The country is advancing the use of blockchain in its financial sector through regulatory reforms, central bank initiatives, and private investment. Laws 4961/2022 and 5113/2024 provide a legal framework for blockchain and distributed ledger technology (DLT) adoption, including participation in the EU DLT Pilot Regime.
Financial Sector and Capital Markets: The Athens Stock Exchange (ATHEX), a publicly listed company, serves as a central platform for trading equities and bonds in Greece. The Hellenic Capital Market Commission, an independent regulatory body, supervises brokerage firms, investment firms, mutual fund management companies, portfolio investment companies, real estate investment trusts, financial intermediation firms, clearing houses and their administrators (including the Athens Stock Exchange), and investor indemnity and transaction security schemes. One credit bureau – Tiresias – operates in Greece as a private company with Greek banks as shareholders. Tiresias is a member of the Association of Consumer Credit Information Suppliers (ACCIS) and provides reliable information for the assessment of credit risks to banks and businesses.
Foreign Exchange Controls: Greece’s foreign exchange market adheres to European Union rules on the free movement of capital. Funds associated with any form of investment in Greece can be freely converted into any global currency without restrictions. As a euro area member, Greece uses the euro (EUR) as its official currency, which is fully convertible. The exchange rate is market-determined, as the euro operates under a freely floating exchange rate regime, driven by global supply and demand dynamics. Greece is not engaged in currency manipulation for the purpose of gaining a competitive advantage.
The country maintains a liberal foreign exchange regime, allowing for the free transfer of investment-related funds, including dividends, interest, and capital gains. This framework aligns with Greece’s broader objective to promote a stable and attractive investment climate. Greece imposes no specific time limitations on the remittance of investment returns. Transfers involving dividends, interest, royalties, lease payments, and loan principal can be conducted freely, provided that all tax and regulatory obligations are met. While no legal waiting period exists, actual processing may be subject to standard banking timelines and anti-money laundering (AML) checks and know-your-customer (KYC) procedures. These operational factors may cause minor administrative delays but do not constitute formal restrictions.
Tax Rate Related Issues
Greece and the United States signed a Treaty for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes in 1950. Greece reached an agreement on November 30, 2014, on the terms of an intergovernmental agreement with the United States to implement the Foreign Account Tax Compliance Act (FATCA), which was signed January 2017. Greece is a member of the OECD Inclusive Framework on Base Erosion and Profit Shifting. The Greek government also accepted the Inclusive Framework’s October 2021 deal on the two-pillar solution to global tax challenges, including a global minimum corporate tax.
On March 21, 2015, the Greek Parliament passed a law (No 4321/2015) to prevent triangular trade transactions with third countries that have lower taxes than Greece (i.e., Bulgaria, Cyprus, and Ireland). According to Article 21 of the law, a company which imports goods into Greece from another country with a lower tax rate must pre-pay the 26 percent withholding tax. To secure a refund, the entity has three months to demonstrate the transaction was made on market terms and is not triangular (not an exchange between corporate partners exploiting the tax rate differential between the countries). U.S. firms with collaborators and/or offices in third countries with lower taxes than Greece should note this law.