Workforce Payments Guide Greece

Last updated: Dec 17, 2023

Currency
Euro (EUR)
Payroll Frequency
Monthly
Capital
Athens
Fiscal Year
1 January- 31 December
Employer Taxes
24.74% + 20 EUR/year
Employee Costs
15.87%
Central Bank
The Bank of Greece
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3rd Party Payments

Social Security Contributions: Social Security payments, known as the EFKA contribution, are paid to the local Social Security office. It is remitted on the last business day of the following month.

State Auxiliary Pensions: Pension payments, known as the TEKA contribution, is paid to State Auxiliary Pension. It is remitted on the final business day within two months. 

Local Taxes: Local taxes are due on the last business day within two months. Use one of the following payment methods:

  1. The company will manage the payments through a local bank on its own. The client will use the payment details included in the statements.
  2. Papaya’s local partner will manage the payments on behalf of the company for an additional fee.
  3. Payment is made through SEPA.

Payments Coverage

Papaya Global fully supports payments in Greece.

The funding currencies can be AED, AUD, CAD, CHF, kr DKK, EUR, GBP, HKD, NZD, kr SEK, SGD, and USD.

The payout currency is EUR and payment is done on the same day.

Contractor Payments

Papaya Global supports payments to contractors in Greece. The payout currency may vary based on the receiver bank account setup when receiving foreign currencies. it is advised for contractors to reach out to their bank to confirm how foreign currencies are handled

IBAN

IBAN Example Greece

GR9501118535368214984826849

IBAN in print GR95
Country Code GR 0111 8535 3682 1498 4826 849
Digit Code 95
Bank Code 011
Bank Account Number 5368214984826849

KYC

Know Your Customer (KYC) procedure in Greece, can be done electronically via the eGov-KYC service, accessible through the bank’s internet banking system. The process requires the following steps:

  • Customer Identification: The first step in a KYC procedures is to identify the customer.
  • Document Verification: verify the following documents:
    • National Identity Card: Identity Card issued by the Greek Police is the primary source of identification in Greece.
    • Passport: Verify Greek Passports issued by the National Passport Center.
    • Driver’s License: Check the originality of a driving license issued by the Transport and Communications Department Office.
    • Credit/Debit Card: Verify credit/debit cards.
    • Data Extraction: Extract the necessary data from the verified documents.
  • Face Verification: Perform a face verification to ensure correct identity.

Please note that the processing of the individual’s personal data is conditional upon their application and explicit consent. The Ministry of Digital Governance is the data controller, whereas the financial institutions and credit institutions are independent data controllers.

Banking Regulations

Regulation 924/2009: This regulation aims to equalize charges between cross-border payments in euros and the corresponding national payments in national currency, offered by any payment service provider (e.g., banks) within the EU. A payment service provider may apply any charge it wishes for a cross-border payment in euros, provided that it applies the same charge for a corresponding national payment in the national currency of the Member State in which the payment service provider of the payer is located.

Regulation 2019/518: This regulation amends Regulation 924/2009 as regards certain charges on cross-border payments in the Union and currency conversion charges.

Regulation 518/2019: This regulation amends Regulation 924/2009 as regards charges on cross-border payments in the Union and currency conversion charges. The charges levied by payment service providers (PSPs) in respect of cross-border payments in euros must be the same as charges levied by the PSP for “corresponding national payments of the same value.”

Bank of Greece’s Regulatory Framework for Digital Customer Onboarding: The Bank of Greece has laid down terms and conditions for digital customer onboarding by banks and other supervised entities.

Opening a Bank Account

To open a company bank account in Greece, the following documents are needed:

  • Company’s incorporation documents
  • Registration certificate
  • Shareholder’s identity documents
  • Company’s business address
  • Greek tax number (AFM number)
  • Proof of address (banks usually accept a utility bill)
  • Tax returns from where you’ve previously resided
  • Proof of salary (payslips or a letter from your employer)

Please note that the requirements might vary slightly from bank to bank. The process of opening a company bank account in Greece typically shouldn’t take more than an hour1. However, this can vary depending on the bank and the specific circumstances.

International Banks

  • ABN Amro Bank N.V.
  • Bank of America Europe DAC, Athens Branch
  • Bank of China (Europe) S.A. Athens branch
  • Bank Saderat Iran
  • Bff Bank S.p.a.-greek Branch
  • BMW Austria Bank GmbH
  • BNP PARIBAS S.A. ATHENS BRANCH
  • CA Auto Bank GmbH – Hellenic Branch
  • CITIBANK EUROPE Plc
  • Deutsche Bank AG

Local Major Banks

Here are some of the major local banks in Greece:
  • Alpha Bank
  • Eurobank Ergasias
  • National Bank of Greece
  • Piraeus Bank
  • Attica Bank
  • Optima Bank
  • Aegean Baltic Bank
  • Credicom Consumer Finance Bank

Local B2C Payments Tools

  • Credit Cards: Major credit card brands like MasterCard and VISA (including VISA Electron) are the most popular online payment methods.
  • Digital Wallets: Digital wallets like PayPal and Apple Pay are also widely used.
  • Online Bank Transfers: Traditional online bank transfers are also a common method of payment.
  • Buy Now Pay Later: This is a digital financial product that has gained popularity recently.

Cryptocurrency

Cryptocurrencies are accepted in Greece. An estimated double-digit percentage of the population are involved in cryptocurrency trading on various platforms.

The Greek state taxes crypto gains at the usual 22% once they are turned into euros and enter an account. For companies that have cryptocurrency accounts, the only way to avoid taxation is to exchange them with products that accept crypto payments.

The Bank of Greece and the Hellenic Capital Market Commission have issued warnings regarding the risks associated with virtual currencies, emphasizing the lack of regulatory oversight and consumer protection. Despite these warnings, there has been no outright ban on cryptocurrencies. Instead, regulatory bodies have been monitoring the market, signaling a potential for future legislative developments that align with EU directives and international standards.

The transposition of the EU’s Fifth Anti-Money Laundering Directive (5AMLD) into Greek law has been a significant step towards the regulation of crypto exchanges and wallet providers. These entities are now required to register with the appropriate Greek authorities and adhere to strict AML and CFT guidelines.

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